Pre-deal confirmation
Acquisitions take time to materialize….a time which is filled with uncertainty. People seek certainty and when they don’t have it, low morale and poor productivity manifests.
Leaders can address these concerns if they:
1. Communicate frequently even when there is nothing to communicate.
2. Listen and acknowledge concerns raised.
3. Be transparent wherever possible.
4. Equip people managers with coaching skills to help their teams embrace change.
5. Train employees (if relevant) in interviewing skills and resume preparation.
6. Adopt a ‘business as usual’ approach in the way they behave (employees take their lead from people in positions of high influence, especially CEO’s).
7. Maintain strong engagement with high potential employees and those you wish to retain.
At this juncture, the CEO, (and senior executives) will be well served by working with an executive coach to support and help create perspective and accountability.
Transition
Transition follows the confirmation of the deal to the launch. Typically, a very frenetic time of high activity. Also an exciting time when two companies form a new entity. A fast but effective transition will assist in settling the new company.
Ensuring minimal turnover and positive morale:
1. Leaders must lead change (not manage it); be visible.
2. Facilitate people from both entities to work on joint projects and initiatives.
3. Ideally relocate to new premises within first few months (fosters unity).
4. The new leadership team should establish its purpose and guiding principles.
5. Create the vision, desired culture and strategic plan.
6. Implement a comprehensive communication plan.
7. Be transparent in articulating the appointment process and redundancy provisions.
8. Treat people leaving the company with dignity, acknowledging their contribution.
9. Communicate, communicate, communicate. Never underestimate its impact.
Integration and Transformation
Key milestones include the launch of the new entity, alignment of practices, policies and development of the desired culture.
Culture was ranked as the most challenging people issue in M&A’s according to a 2004 Towers Perrin survey, as cited in the HCI white paper (2007). The Importance of Leadership and Culture to M&A success.
Taking your people with you:
1. Launch the new company (vision, strategy and culture). Make it high impact!
2. Communicate a timetable for alignment of term and conditions…. and stick to it.
3. Incorporate the values into core processes i.e. attraction, selection, induction, performance measurement, leadership development, reward/recognition and policy.
4. Executive leaders need to ‘walk the talk’, modelling the desired behaviours.
5. Invest in leadership development for managers and focus on talent management.
6. Conduct regular updates to staff on company performance and strategy.
7. Encourage people to make suggestions concerning improvements to company practices….recognize them when they do!
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