Consolidation in the iGaming Sector: Organisational Design for Post-Merger Success

Consolidation in the iGaming sector has gained momentum in recent years, driven by market growth, the iGaming maturation, and the relentless pace of technological innovation. While the strategic rationale for mergers and acquisitions is compelling, the true test lies in successfully integrating these entities. Here's where organisational design becomes the cornerstone of unlocking the promised value and navigating the complexities of a post-merger landscape.

As an iGaming leader, you understand the importance of human capital. But in the throes of a merger, talent management takes on a whole new level of significance. Here, we'll delve into key considerations for restructuring your organisation, managing your human capital effectively, and aligning these strategies with achieving your post-merger goals.

Leading the Way: Building the New Leadership Structure

Merging two leadership teams presents a unique challenge and a crucial opportunity. Here, navigating egos and promoting collaboration are paramount. When defining your new leadership team, key considerations include:

●      Complementary Skillsets: In many cases, it’s the unique skillsets of both entities that drives the M&A deal. Merging these strengths creates a leadership team with a broader and more diverse range of expertise. However, where there is duplication of roles, it's crucial to carefully assess experience and cultural fit to determine who will best lead the combined team in that specific area.

●      Cultural Fit: Beyond skills, cultural alignment is vital. Leaders who embrace the merged entity's vision and can bridge potential cultural divides will be instrumental in creating a cohesive team environment.

●      Proven Track Record: Prioritise leaders with a history of success in their respective areas. This instils confidence in the broader team and sets the stage for continued high performance within the merged organisation.

●      Change Leadership: Identify leaders who can effectively navigate change and inspire others during this period of transition. Their ability to communicate clearly, promote open dialogue, and address concerns will be crucial for employee morale and overall integration success.

●      Leadership Development: Your new leadership structure may also benefit from programs or coaching focused on merger integration, collaborative leadership, and a shared strategic vision.

Introducing an experienced interim leader can be a good strategic investment before, during and immediately after a merger. Internal leaders, understandably invested in maintaining team morale and relationships, may find it challenging to make objective restructuring decisions, particularly when those decisions might impact their own roles. Interim leaders, free from such internal pressures, can provide a neutral perspective.

With their objective viewpoint and experience in navigating complex mergers, interim leaders can act as the "bad guy" when necessary, implementing the hard decisions while internal stakeholders can build positive relationships within the leadership team and wider company. This frees up internal talent to focus on the human aspects of the merger, with a focus on the long-term success of the merged entity.

Organisational Design Considerations Beyond the Leadership Team

As well as developing a strong leadership team, the post-merger broader organisational design is equally critical for unlocking the full potential of the merged entity. Mergers present a unique opportunity to optimise your structure, eliminate redundancies, and create a more efficient and effective organisation.

Here are some key considerations for restructuring post-merger:

●      Restructuring for Synergy, Not Silos: A well-defined organisational design ensures your new structure reflects the strategic intent of the merger.

●      Focus on Human Capital Optimisation: Mergers often lead to talent duplication. An effective design identifies these redundancies while also recognising the unique strengths each team brings. This allows you to optimise talent allocation and leverage complementary skills across the merged entity.

●      Empowering Teams: Design a structure that empowers teams to be agile and responsive. Clearly defined roles and responsibilities minimise confusion and bureaucracy, allowing teams to focus on achieving their goals. This is also an opportunity to establish cross-functional teams that leverage diverse skillsets and perspectives, leading to more innovative solutions and a more cohesive team environment.

●      Change Management with Empathy: Uncertainty about future roles can lead to employee anxiety and potential departures. Transparent communication regarding the new structure, combined with clear career paths, helps retain valuable talent and builds a sense of security during this transition period.

●      Supporting Transitions: Some restructuring decisions may lead to redundancies, which can have a negative impact on the remaining team as well as the individuals directly affected. Outplacement services help demonstrate your commitment to your workforce and support displaced employees as they transition to new opportunities.

It’s important to also remember that effective organisational design is not static. Continuous evaluation and optimisation is needed to ensure it remains aligned with your strategic goals and responsive to the ever-evolving iGaming landscape.

Building a Sustainable Future, Together

By prioritising a well-designed organisational structure and strategically managing your human capital, you lay the foundation for a thriving post-merger organisation. This translates into increased efficiency, faster decision-making, and a talent pool empowered to drive innovation and success in the competitive iGaming landscape.

As a trusted human capital solutions provider within the iGaming industry, at Conexus Leadership we understand your world. From organisational design and interim solutions to executive search, coaching and team diagnostics, we offer a comprehensive suite of solutions to support you throughout the entire merger process and beyond.

Contact us today: andrew.cook@theconexusgroup.com