CASE STUDY #2: UTILITY COMPANY

The advent of deregulation in the electric utility
industry has produced a flurry of acquisitions and
mergers. In 1999, The Fontaine Group was engaged
by a newly formed international partnership which had
acquired three nuclear generating plants. Each of these
plants was operating at a loss, and each plant had a different internal work environment due to differing plant and management histories and work practices.

The client's goals were to:

•

Integrate the three plants at every level of operation,

•

Retain skilled leadership and a workforce that would
be committed to implementing the vision, and

•

Achieve safe, reliable, cost competitive electric generation.

As part of the client's "due diligence" prior to acquisition, TFG implemented work culture assessments at all three sites. The assessments assisted the acquiring management to better determine how to merge the mixed workforces without risking safety, to minimize productivity drop, and to retain the necessary skilled workforce.

Following the work culture assessments, TFG was invited to work closely with the site vice-presidents and their management teams to help them clarify, align and communicate the direction of the plants. We assisted them in determining goals and establishing next steps for the merged sites. As part of the next steps, TFG designed and facilitated work group meetings. During these meetings we assisted the team in working through issues and barriers. Once the team was functioning well, team members were able to bring the vision, direction and goals of the new company to the rest of the employees. This process engaged the workers and therefore helped them overcome their concerns and enhance their commitment.

Some of the work teams had difficulty adjusting to new leadership and the restructuring of plant administration. This resulted in discord and conflict among the members in regard to the new management. We performed "conflict management" training for workers as a way to bring resolution skills to the workforce caught in the throws of change and confusion. Additionally, the merging process initiated the placement of new leaders throughout the sites. TFG designed, coached and facilitated "new reporting relationship" sessions led by the new leaders with their work groups. Upon completion of these activities the client's goals were successfully achieved.