AMP has developed a set of integration principles to help with the decision-making and transition process of its merger with Axa’s local business units.
In his address to the AMP annual general meeting, AMP chief executive Craig Dunn said in the next three months AMP will establish a preferred organisational model to help with the integration as well as meet two major priorities.
Dunn listed the successful integration of Axa business units and maintaining business momentum across the merged entity as the two major priorities for the combined group in next 12 to 18 months.
“In my view, this merger is not simply about banging two companies together and removing duplicated costs. It has to be more than this,” he said.
“Over the past few weeks, as we have started to work much more closely with our new colleagues from Axa, I have been very encouraged by the goodwill, enthusiasm and engagement of Axa’s people and financial advisers, and the shared values and beliefs that are common to both organisations.”
He said for AMP to manage its priorities the company has separated the responsibilities and made different management teams accountable to meet the two objectives.
“We have created a dedicated and separate team involving senior executives from both businesses to manage the processes and provide the infrastructure necessary for a successful integration,” he said.
“Our business leaders will, of course, be involved at major decision points along the way as we bring the two businesses together, but they will not be distracted from running and growing the business.”
Dunn said one of the key principles under its principle integration guide is that as many decisions as possible will be made jointly by both Axa and AMP.
“So our overriding merger principle is that all major business decisions will be driven by what’s in the best interests of the new, combined company,” he said.
“This merger is all about bringing together the strengths of both organisations to create a stronger and more competitive merged business.”
