Rules of thumb

Seven steps you can take to boost the success of your start-up

1. Know the deal: be clear on what the NDPB has been set up for and timescales involved and implement a strong corporate governance framework as early as possible
2. Establish positive common ground with your sponsoring Department at the very start

   Once you are in post, establish critical accountabilities as early as possible: find out who is responsible for what and then set out to establish mutual trust and confidence with both Ministers and officials. Then work together towards common, agreed goals.

3. Appoint great leaders; appoint them in the right order and make the most of the opportunity to support the talent agenda

   Try to establish the Board of an NDPB as far as you can in advance of the operational period. The first issue to get right is the creation of the Chair and Chief Executive roles. Our interviews indicated that a common mistake is the underestimation of the level of support required in terms of Finance, HR, and, depending on the history behind the startup, communications. These are areas in which an organisation should consider investing from the very start.

4. Involve and engage the recruitment consultancy as early as you can

   Consultancies can provide critical support to underpin the successful appointment of NDPB start-up leaders. This was in many cases confirmed by respondents who said that the perspective of recruiters with solid experience of start-up had been extremely valuable when they were required to focus elsewhere.

5. Make sure you understand the deal financially

   Make sure that your funding settlement looks workable at the outset. Articulate the risks and with your sponsor on side, work through them together. The robustness of financial systems and governance are essential, and tackling uncertainty at the outset will save time and trouble later.

6. Secure the right Human Resources expertise at an early stage

   A good HRD is a powerful asset in the early stages of NDPB formation and can be an important catalyst in affecting cultural change.

7. Keep it simple
   
   

   “The main lesson we learned was ‘under-promise and over-deliver’”

   Most leaders we spoke to said that they had benefited from keeping their plans simple.

Seven steps you can take to boost the success of your merger

1. Invest in good quality strategic thinking early on

   It is important to make sure you have a single, clearly defined governance structure from the start. In a merger situation, a new organisation is forced to grapple with more than one corporate governance framework; clarity in relation to the new organisation’s distinct governance structure and accountability is an important factor in success.

2. Take early stock of your human resources...

   There are major HR issues to consider around the transfer of staff from precursor bodies into the new organisation. If HR professionals from the preceding bodies do not have the skills and perspective required, an interim HRD is an option for implementing tough decisions and championing change in the initial merger phase. Many Chief Executives said they had benefited from a team made up of existing, internal talent, with some key roles filled through open competition.

3. ...but allow enough time for the ‘grieving’ process to happen

   In a merger situation, staff need time to grieve for the organisation they have previously worked for.

   Identify the ‘champions’ as soon as you can and take steps to manage those who are more resistant to change.

4. Ensure the launch date for the new organisation is practical and realistic

   Make sure everyone agrees on what needs to be in place prior to vesting day and ensure you have a sensible contingency plan in place to deal with the unexpected.

5. Maintain constant dialogue with your stakeholders prior to merger

   The new organisation needs to own its communications: ensure there is the right level of clarity across stakeholder communities around the reasons for changing the operational landscape.

6. Be bold and innovative in creating the new organisational identity

   Once the purpose, aims and objectives of the new organisation have been agreed, reinforce cultural change corporately through re-branding to reflect new values – and physically, through a change of location.

7. Define your accountabilities clearly

   Because the chances of a merger succeeding is as dependent on strong and decisive leadership as greenfield start-up.

• Next: Appointing great leaders