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Final Presentation

1) Synergon Capital acquired Beauchamp, a British financial services company, despite objections from Nick Cunningham of Synergon. 2) There were major cultural differences between the authoritarian Synergon and stable Beauchamp that valued its long-tenured employees. 3) Synergon attempted to impose its high-turnover and cost-cutting culture onto Beauchamp, threatening the stability of Beauchamp's operations and staff.

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Darshana Rai
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77 views12 pages

Final Presentation

1) Synergon Capital acquired Beauchamp, a British financial services company, despite objections from Nick Cunningham of Synergon. 2) There were major cultural differences between the authoritarian Synergon and stable Beauchamp that valued its long-tenured employees. 3) Synergon attempted to impose its high-turnover and cost-cutting culture onto Beauchamp, threatening the stability of Beauchamp's operations and staff.

Uploaded by

Darshana Rai
Copyright
© © All Rights Reserved
We take content rights seriously. If you suspect this is your content, claim it here.
Available Formats
Download as PPT, PDF, TXT or read online on Scribd
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Presenters:Purnima Mitra
Nidhi Chhibbar
Darshana Rai
Anita Sabui

Snippets of the case study

Synergon Capital was a US based financial services company under the umbrella of Nick
Cunningham.

He never embraced the idea of Beauchamp acquisitioning his company.

The company head hunted worthwhile acquisitions in the form of turnaround candidates
emerging from small companies, with a powerful market stand, but mediocre in
management.

But Becker & Company, Beauchamp, a British based financial services company did not
fit into the standards of acquisition slated by the company and particularly Nick.

However, Nicks boss J.J was adamant about Beauchamp acquisition and hoped for
monetary gains.

Beauchamps Long time Managing Director, Julian Mansfield was a strong player who
could facilitate Synergon up the growth ladder.

Nick, on his visits to London, witnessed a fairly stable Beauchamp operations, as


compared to his own company Synergon Capital.

Challenges grew deeper and deeper and the future of Synergon Capital became a
towering QUESTION MARK???

Understanding the roots and


its pillars

A little about Synergon:-

Owned a power packed team of performers


Possessed a panel of crack auditors and professionals
Denoted terms like Neutron bombing, commando squads, war rooms, etc to their
work styles
Very tough and rigid work culture
24 X 7 defined their work pattern to achieve targeted deals
Highly mechanized and business machine type work style
Showed people the exit door within 12 months, which amounted to a turnover rate of
21%.
Average tenure of Managers was 6 years
The CEO of the company swore by the Take no prisoners philosophy and emphasized
on the Go And Get It At Any Cost attitude onto the fresh recruits.
Immune and Indifferent towards any obstacles hindering their way towards their targets.
Never encouraged the process of learning
A

little about Nick:Competent by Nature


Was against Beauchamp Acquisition.
Showed a considerate side towards his subordinates.
A true visionary who could foresee what could work well and against the company.
Believed that Julian Mansfield could anchor the company powerfully, if on board.

A few more knowledge


crumbs

A little about J.J:o


o
o
o

Authoritative by nature
Laid the rules his way and expected his employees to work his way alone
Never gave a listening ear to his subordinates
Over confident about the Beauchamp Acquisition and his monetary gains
through it

A little about Beauchamp: A powerful workforce of 700 associates


Surprisingly a stable company, with a powerful market stand and good market
reputation
Tenure of Managers were 21 years with experience
People in the company have been working for more than a decade
Very less attrition rate
A little about Julian Mansfield: Long standing Managing Director of Beauchamp company
Known and honored for his generosity
His sound business sense and character earned him tons of respect from his
company
A true Godfather of his professional world

Whats the Problem???

Cultural Mismatch spelt the biggest enticing web for


acquisition.

Synergon spent money on itself while imposing


austerity measures on Beauchamp the acquired
company, which could give rise to an implosion

No concern for growth and only emphasized on


retaining their loyal and wealthy client base

Boasted about their Neutron Bombing strategy ,


sacking people and making them jobless

Attrition/Turnover rate was more of Synergon


compared to Beauchamp

Never in favor of having Beauchamp in their


professional journey

Drastic changes will lead to very high resistance to


change. Work styles need to be integrated and not
clone its twin

The problematic
facets continue

Synergon expected its culture to be


uniform, which flickered flames of
issues and differences

Synergon was trying to impose their


method of functioning on Beauchamp
Synergon tried to tamper with the
delicate balance that prevailed in a
stable but mid-sized company like
Beauchamp
Synergon also showcases Resistance
to Change which portrays the
elements of Shock, Denial, Awareness,
Acceptance, Experimentation, Search
and Integration

The Solution Mesh


Synergon should have just acquired Beauchamp to provide finances for
growth. The focus should be on Synergon cross selling its own products
to Beauchamps loyal customer base and attaining new clients for growth.
Reinstate the bonuses that were scrapped for the general staff of
Beauchamp
Remove all the layers of approval and paperwork in
the area of travel, credit to existing customers.
Treat the staff of Beauchamp with respect.
The staff needs to be kept together intact so that
they can continue on the road to success by doing what
they have already been doing.
Instead of implementing cost cutting measures on
Beauchamp, the austerity measures should be
implemented on the staff and operations of Synergon

Riding of the Resistance to


Change Wagon by the
Synergons
N
ENTATIO
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EX

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K
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IAL
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AC

NCE
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SEARCH

INTEGRATION

The Mesh Continues

Infuse capital to grow Beauchamp. Operations were never a problem for


Beauchamp. They just needed more money to grow

Change happens slowly. Therefore change must take its own course in time
and merge the operating trends/styles of the two companies accordingly
and only if possible

Role Negotiation Technique can be thought upon, as not only


does it focus its limelight upon problem solving, but also on
empathy building

Appreciative Inquiry can also feature as one of the ways and means
in capitalizing the positive aspects, skills and focusing on productive
and effective solutions

Introspection and at the same time, gradual inclusion of new techniques


and methods proves to be a worthwhile measure

On a Concluding Note
All organizations have their own culture. Sometimes they differ a lot from
our own and sometimes we can hardly notice them. At the same work,
operational and functional differences have their own essence of
importance in all organizational journeys.
According to a recent article published in Business Trends, it is said that
organizations must value any kinds of diversity especially culture
oriented in order to enhance organizational effectiveness. Diversities
play an upper hand on factors like resource acquisition, creativity,
marketing, problem identification, organizational flexibility and many more.
As per this case study, it is wise to stay away from the functionary of
Beauchamp and instead concentrate on cross selling and providing
finances for growth of business and existing clients. Introduction of new
product lines could be one of the
effective techniques.

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