Plan and listen
Prior to the merger, the organizations engaged consultants to helpthem put together an operating plan, which was really a to-do list ofthings to get accomplished in the first years of the merger. That included back-office consolidation, staffing the organization and clinicalconsolidation.
“We couldn’t share information between the organizations prior tomerger, so we used a consultant to help us process that information,”he says. “But it was time and effort well spent because it gave us anagreed-upon plan for the first several years of the organization.”
Gallatin says the preplanning was vital in making the transitionsmooth.
“Typically, in health care mergers, they merge, then people figure outwhat to do next,” he says. “We took the proactive approach and really tried to have a really well-defined operating plan for the first coupleof years, in particular, of the merger that would allow us to bring theefficiencies and generate the economies of scale that we thought we could do as we did this merger.”
The leadership of the merging organizations formed the StrategicIntegration Group to facilitate the merger and bring people together.However, Gallatin says, people were, at first, hesitant to speak theirminds on ideas.
“There was some concern about what you could say in the roomand if it would be totally well received or people were afraid theymight show a sign of weakness by saying something,” he says.
Gallatin says a key to leadership is listening, which is a good way tocreate an environment where ideas are shared.
“It’s more about engaging in conversation, I guess, than it is in justlistening,” he says. “It needs to be a two-way conversation. But, youreally need to be hearing from your executives and your direct reports— what’s really on their mind, what their concerns are about, howthey can conduct their day-to-day responsibilities in the organization. You really need to be an active listener, which means respond tothe concerns that are being brought to your attention.”
Once you’ve heard the opinions, it’s important to get guiding principles down on paper, so everyone knows the direction the company isgoing. When developing those guiding principles, remember what youwant your organization to become.
“You focus on the reason your organization exists,” Gallatin says. “Ifit’s an accounting firm, it’s probably there to serve the shareholders ormaybe another higher purpose. The advantage we have is that we areowned by the communities that we serve. So, really, making a profitis a means to an end for our health system. We need to do that so wecan produce the resources to replace our depreciating assets, to buythe technology that we need to provide the care for the community.”
Start by thinking in terms of your mission and vision before anymerger.
“Come to some agreement prior to a merger — is that the combinedmission of this new organization and, if not, why are you merging?” hesays.
Gallatin emphasizes the need to establish principles and reasons forthe merger and to keep those reasons in the forefront of your mind atall times. He also reiterates the need to plan ahead as much as possible.
“Plan your work and then, after the merger, work your plan,” hesays. “As much planning as you can do and agreement you can getpremerger, whether it’s government or whether it’s operations orwhether it’s things like communications — as much preplanning asyou can do is certainly worth the investment of time and resources todo that. You need to be careful you do it appropriately and in a legalway, but it can be done.”