confluence
When two rivers meet the resulting river will be much larger. At the point where they meet, however, there are many areas where the resulting turbidity causes a significant slowing of the currents. In most situations this can cause degradation of the surrounding banks, dangerous conditions for wildlife in the river, and general chaos that might not be corrected until miles down the river. Take a look at this diagram that illustrates the slower (red) and faster (blue) velocities of the water at and immediately after a specific confluence:
2011), Structure of turbulent flow at a river confluence with momentum and velocity ratios close to 1: Insight provided by an eddy-resolving numerical simulation, Water Resour. Res., 47, W05507, doi:10.1029/2010WR010018.
, , , , and (If you enjoy an extremely technical article, and speak “physics” you might be interested in the original article: river confluence
The most obvious business analogy for a confluence of two rivers is when two companies decide to merge. This could be by acquisition or by contract. The principles I want to discuss can be applied to other types of convergence as well: two departments being combined into one or multiple product types or service offerings being consolidated, for example.
The goal with any type of merger is that things will go “smoothly”, and that the combined product will be even stronger than the original two entities. There is, however, an inherent “turbidity” caused by these types of combinations. When two strong/successful business are combined it is inevitable that there will be challenges. These may include: inconsistent policies, variations in business model, different performance metrics, loyalties, customer-relations, etc. It is important to take measures to prevent these issues, and to address those that are unavoidable as quickly and efficiently as possible.
Imagine two very successful groups of workers with specifically defined roles and responsibilities plugging away day in and day out to produce an excellent product. These two groups are suddenly combined without a specific strategy or directive and without effective leadership during the transition. The result is then a group where several people sit around without a clear idea of where they fit in, while others must work twice as hard as before the combination. The efficiency of the team suffers, and even the quality of the product can be compromised.
There are a few things you must have in place to minimize issues and maximize the benefits of a “business confluence”:
Specific goals: set these higher for the new organization than the expectations for each of the original entities, but determine a reasonable timeline to meet these goals.
Ensure understanding: help all personnel at every level affected by the change understand the goals and objectives for the change, and what their new roles and responsibilities will be. Asking for input from each member of the team will help to uncover obstacles that you may not have considered.
Inspire optimism: no matter the circumstances or reasons for the merge, remain focused on success. Inspire your team to maximize benefits of the change.
Strong leadership: ensure that you have strong and effective leaders in each critical area of your organization. You will need to either take the role of leadership yourself, or ensure that those you have designated are both determined and dynamic. Your leadership must be dedicated to the plans that you have put in place for the merge, but must also be able to make slight modifications and compromises when advantageous for the overall success of the undertaking. Consider appointing a liaison to learn and understand each of the companies or groups in depth. You may also consider a specific delegate to monitor the transition process and identify specific issues/obstacles as they arise.
Have you been involved in any mergers that have been adversely affected by “turbidity” of the two entities coming together?
What have you done before or during an acquisition or contract to determine what specific challenges should be anticipated?
Great article, thanks for the share. JRN
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