NTCA and OPASTCO - It's all about the 10%
Flying from Orlando after the OPASTCO Winter convention, I am contemplating the many take-aways from this meeting.
OPASTCO and NTCA will be offering a joint show this time next year and the organizations have announced they are in discussions to formally join forces. Is this the last standalone winter convention for both associations? If I were a betting man, I would say “yes”, regardless of the outcome of the unification talks.
NTCA and OPASTCO have increasingly found it smart and necessary to speak with a unified voice on the critical policy questions of the day. It is obvious that, whether cooperative or family owned (and each association includes both types on their membership rolls) 90% of the issues are the same. Telco cooperatives call distributed profit patronage, family owned LECs call it dividends. But, from a cultural perspective, there are differences in governance of both the organizations themselves and the member companies.
The success or failure to merge cultures is the primary driver determining success or failure in any acquisition, consolidation or unification in any industry of any size. In every organization, the primary driver is not the “what we do” or “how we do it”. It is the “why we do it” that is the guiding force, the north star of the organization. In the preparation of the “to do” lists regarding the potential decision, each organization will find that 90% of the issues where there is common ground are relatively easy to address. The 10% of the issues on the list that will be the most difficult to resolve are usually related to the “why”.
“Everyone” knows that there is increasing pressure to at least consider merger and acquisition activities in the rural telecom community. The fundamental economics of the telephone business have and will relentlessly continue to change. I would hope that the strategic imperative for re-rationalizing the structure of the business would be embraced more fully but there are cultural impediments to change that are more powerful. I hope the financial imperatives that are likely to force the issue are foreseen with enough time to carefully and thoughtfully consider the more powerful strategic and cultural issues associated with change, thereby resulting in a better outcome.
These associations, whether or not they actually formally join, will lead the way by demonstrating to their constituent members how they consider and resolve the cultural 10% issues. Pay attention - your company should be prepared to learn from the experience.