Successful post-merger integration in the public sector

Fabian Sommerrock - 2009

Mergers between public institutions in Germany are increasingly used as a tool for structural realignment. Officials view this as an opportunity to streamline the public sector and make it more customer-friendly. Notable examples for completed or scheduled combinations between public institutions can be found in the statutory healthcare sector and among regional state banks.

Due to political and administrative requirements, mergers in the public sector often differ significantly from business combinations in the private sector. In his thesis paper, Fabian Sommerrock identifies specific action areas for successful public sector mergers. In an empirical case study of healthcare payors, he looks at the merger process and offers a practical 5-S approach (strategy, structure, staff, subculture, stakeholders).