Quantum leap breakthrough performance in acquisitions: The readiness and generative value approach

Abstract

Purpose

The purpose of this paper is to describe how the goal of quantum leap breakthrough performance in acquisitions is to enable readers to achieve an unprecedented leap in performance as a result of major acquisitions.

Design/methodology/approach

This requires first, establishing acquisition readiness by developing a core set of capabilities and second, using a breakthrough approach that fuses both growth and expense cutting synergies to accomplish the quantum leap performance gains, especially during the integration stages. These capabilities enable the successful integration of the acquired organization and the emergence of the new entity.

Findings

The paper finds that those organizations that are going to win at this game are the ones that have the best capabilities for effecting the right acquisition and who can implement the best integration. Those capabilities are the name of the game.

Practical implications

The focus on capabilities is the prime distinguishing feature of quantum leap breakthrough performance in acquisitions. This is based on an organization developing the capabilities for core integration. Whether you are an integrator or a target, it is essential to have these capabilities.

Originality/value

If an organization wants to excel at developing, acquiring and integration, it needs have the following core set of capabilities: strategic agility, market agility, organization building, people management, project and process management and knowledge management, learning and innovation. When these capabilities interact with a set of six catalyzing springboards (i.e. customer strategy, organization strategy, integrating culture and leadership principles, a people strategy, integrating knowledge systems, and information technology architecture) the organization can achieve an extraordinary quantum leap in value.

Citation

Chatzkel, J. and Saint‐Onge, H. (2007), "Quantum leap breakthrough performance in acquisitions: The readiness and generative value approach", Management Decision, Vol. 45 No. 9, pp. 1457-1469. https://doi.org/10.1108/00251740710828708