Post Merger Change Leadership,

Blue Cross Insurance California (US)

Client Issue: Blue Cross has been serving the health insurance needs of Californian residents since 1937. Together with its branded affiliates, provides health care services to more than 6.8 million members. The company has a strong track record for innovation & focuses on progressive services designed to improve health status. We were involved with this client after the merger of two large insurance providers. They requested help with staff & management engagement, as well as maintaining their market presence during the merger turmoil. We partnered with them to improve a feeling of ‘ownership’ for the merger from two very different company cultures. Key issues also included; the retention & motivation of top talent during & post merger; & blending of a unionised, highly diverse workforce in the North with a non-union, non diverse workforce in the South.

Solution: We formed cross functional taskforce (at Board level) for merging strategic plans.
We also worked with senior managers to identify key clients for special attention during transition to ensure retention. We helped our client form first & mid level management teams to work on implementation plans, & put in a plan for managing transition communications (face-to-face, video, plus written communications). Finally we identified ‘key contributors’, & established a retention program to fend off competitor raids. This also included extensive dialogue with unions to minimise the perceived 'threat' of change to staff.

Outcome: Smoother transition than anticipated by Board (required less consultancy, $ down).
Agreed & reframed strategy to reflect site capacities for expanded market share. Focused account retention & solicitation. An IT integration plan, providing a far more cohesive sales team with the information they required. Communication strategy adopted as best practice model for future pre/post merger situations. Transfer & outplacement program for redundant staff. Career development plans which encouraged 'cross company' moves, & reduced staff turnover on a year-to-year basis. Labour/management relations strengthened due to improved change & excellent communication.

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