Why merge when you can start fresh?

In the article "A Partnership Continuum" (November 2003, page 54), the authors talk about different types of "strategic restructuring." In our experience, the most successful and innovative option is not directly described in the article--creating an entirely new organization. Together, interested parties answer the question, "If no association existed, what kind of organization would we create to meet the future needs of our industry or profession?"

This approach is very different from a merger. While the motivating circumstances are similar, the energy of leaders from all (because there can be more than two in this approach) participating organizations is focused on creating something that doesn't exist, rather than trying to merge existing organizations.

In a merger, issues related to distribution of power and existing assets tend to drive a negotiated organizational design, and a negotiated approach usually creates an environment of winners, losers, and compromises. In addition, often mergers are actually acquisitions disguised as mergers to be politically more palatable to the acquired group. In such circumstances, the culture and interests of the acquiring group dominate.

By creating a new organization, the emphasis is on what makes sense for the future. Strengths of participating organizations are incorporated in the new organization if and when they represent what the participants believe makes sense for the new organization.

Our experience is consistent with that of the authors regarding predictors of success. We would add one more: Share any deal breakers openly and honestly by revealing them early in the dialogue and then addressing those issues within the framework of the new organization.

Kermit Eide and Cate Bower Principal Partners, Tecker Consultants, LLC, Trenton, New Jersey, [e-mail], [e-mail]