Financial Services Success Story

TPO Client

The CEO of a small, publicly traded financial services company.

Background and Objectives

The firm just acquired a private business that was larger in employee size and expanded the company from a single location to 4 regional offices. In addition to the integration of the new business, the strategic plan called for a liquidity event in three to five years for the shareholders of the holding company which owned 60% of the firm.

Challenges Identified by TPO

  • The due diligence prior to the acquisition failed to consider HR issues from employment contracts to cultural compatibility.
  • Executives were distracted from day to day management due to significant legal and regulatory issues.
  • The larger organization demanded different skills in its leaders and additional growth increased the talent demands.
  • Human resource processes were decentralized without linkage to the parent company systems.

TPO Recommendations and Solutions

  • Developed and implemented an integration strategy focused on a unified culture. Projects included communication systems and processes, consolidated policies, revamped benefits for regional equity, rewards and recognition program, incentive plans and total compensation systems.
  • Designed a performance management system linked to the strategic plan, including formal quarterly reporting and a quantitative portion of incentive plan.
  • Designed new departments and functions to meet the changing industry and regulatory environment (on-line division, new product line).
  • Redesigned the finance, IT, and client services departments. Realigned existing staff to appropriate roles or termination.
  • Recruited new executive leadership with needed expertise.
  • Built a human resources department that combined technical HR skills and business acumen.

Results and Other Outcomes

  • A successful second public offering of the Mutual Holding Company’s 60% ownership.
  • Created a subsidiary dedicated to regulatory issues.
  • Sold to a privately held financial services company.