Supporting Integration after M&A through Knowledge Networks within RWE Net

Abstract

After a hundred years of market control in Germany, the electricity market is currently characterized by partial market deregulation and, consequently, the utilities have to cope with increased competition. To remain competitive, a major growth factor can be stimulated through mergers and acquisitions (M&A) that encourage synergies as well as providing access to new geographical areas. The companies RWE AG⁵ and VEW AG⁶ followed this path to growth and merged. After the merger both companies were reorganized and divided into several business units.

The challenge of a merged company is to overcome the barriers related to a merger and bring together the employees in order to formalize a knowledge transfer in the relevant strategic business fields. This process is called “Knowledge Integration after M&A”. To implement the process, the company needs a comprehensive tool with which to integrate its employees’ knowledge. The goal of the project was to test the MERLIN methodology that had been established for intra-organizational knowledge networks in a new business field, adapt it for the new field of use, implement the knowledge network, and accompany it during the set-up phase.

The background to this case study describes RWE Net’s historical background and the urgency with which a formalized knowledge transfer was undertaken. Thereafter the approach - the various steps of a knowledge network setup - is described. This is followed by conclusions regarding a network’s developmental steps. The case is concluded with the lessons learned and the most important general recommendations.

RWE Net