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

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.