Merging or consolidating cooperative member systems may potentially achieve important long-term economic benefits, efficiencies, and overall improved service for the combined membership. However, this decision requires careful analysis and planning regarding the financial, operational, governance, organization structure, and resource assignments. More importantly the decision analysis must be done under a collaborative, objective, and learning environment between the interested parties. Prior to any formal merger agreement, significant analysis should also be undertaken to determine the synergies and differences between the potential merger parties’ organizational cultures, operating approaches, and board philosophies. NRECA’s National Consulting Group (NCG) helps cooperatives navigate this very important decision.
Successful approaches to merger and consolidation analysis are designed to ensure objectivity with the best interests of each cooperative’s members and employees at the forefront of all activities and analysis. NCG follows a four-phased decision analysis approach, emphasizing a systematic and collaborative process with the collective board’s involvement in the decision making process.
The first phase sets the stage to assess the mutual interests and provides for the preliminary evaluation of the strategic advantages, potential opportunities and value proposition to the collective membership. The outcome of this phase includes the proposed course of action that best meets the Cooperatives strategic interests.
The second phase builds on the first phase conclusions and involves a comprehensive and detailed analysis including quantifying the economic benefits of the proposed consolidation.
With concurrence to proceed with the consolidation process, the third phase is intended to detail the transitional and integration plans on the key operating structure elements.
The final phase focuses on the engaged efforts for the communication and formal approval plans for the consolidation.
Merging or consolidating systems is a decision that will have a profound impact on the systems involved for years to come. Let NCG help provide you with an objective analysis so that you may consider all possible elements and ultimately feel confident in the final decision.
For more information:
Contact Henry Cano, 602-621-3905, email@example.com