Momentum and Metropolitan’s Merger: Authentic Transformational Leadership
(9 pages of text)
The merger of Momentum and Metropolitan into MMI Holdings Limited, one of South Africa’s largest insurers, played out against the setting of South Africa’s volatile currency and post-apartheid environment, with sensitive employees and a Competition Tribunal that prohibited the retrenchment of around 2,000 employees. The two companies with very different cultures were merged, with only one of the CEOs attaining the Group CEO position. The leaders’ clear vision and focus on change management enabled a successful merger process. How can the Group CEO derive synergies and grow capital from the integration’s next phase to prevent MMI from becoming another merger that fails to provide returns for shareholders?
This case illustrates the impact of authentic transformational leadership on a merger. It can be used in HBA or MBA courses on organizational development, leadership, change management, and merger strategy and implementation. It will improve students’ understanding of change management during mergers, and help them gain insight into distributive leadership through examining the influence of various role-players at specific stages of a merger process. Students will:
- Critically evaluate whether the MMI Holdings merger was a true merger by referring to the literature on mergers and acquisitions.
- Perform an analysis of transformational and authentic leadership by noting the impact of various influencers during specific stages of the merger process.
- Referring to Kotter’s 8-Step Process for Leading Change, analyze the effectiveness of the merger process.
Finance and Insurance
South Africa, Large, 2014
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