In this case study, Isolde and Emanuel target distinct markets within the diagnostics and research equipment industry. Isolde’s unit, Siiquent, primarily serves hospitals and diagnostic labs, focusing on providing consumables such as biological and chemical compounds, test kits, and more. Their revenue model centers on earning profits from the sale of these consumables and positioning themselves as revenue generators for their customers. In contrast, Emanuel’s unit, Teomik, caters to research labs and universities, supplying research equipment and materials for genomics studies. Teomik’s revenue model revolves around earning profits from high-margin patent-protected devices used in scientific research.
When considering whether to impose a single revenue model or allow the company to continue its flexible approach, there are pros and perils to each option. Imposing a single model can bring consistency, clarity, and streamlined decision-making to the merged entity. It may also align the sales force and potentially lead to cost savings through unified operations. However, this approach could stifle innovation, flexibility, and customer-centricity, which are crucial in rapidly changing markets. Each unit has developed unique strengths and customer relationships, and imposing a single model may risk losing these advantages and customer dissatisfaction if it does not align with preferences.
To mediate a fair merging process as a star PM assigned to facilitate discussions between Isolde and Emanuel, a scaffolded approach can be followed. Begin with preparation and information sharing to ensure both leaders have a clear understanding of each other’s businesses. Align on overarching merger goals and identify common ground, looking for areas of synergy and overlap. Encourage leaders to present their cases for their respective revenue models, considering advantages and drawbacks. Conduct market research to inform decision-making and gather feedback from stakeholders like sales teams and customers. Engage in scenario planning to explore various options and their implications. Hold iterative discussions, with a collaborative decision-making process that respects both units’ strengths and aligns with company objectives. Post-merger, monitor performance and adapt the revenue model as needed based on market dynamics and feedback, ensuring a fair and informed decision-making process.
