A merger and acquisition process can be extremely tough for employees to manage. To ensure maximum value is achieved during the course of the merger and acquisition, it is necessary that HR steps in to facilitate the process.
According to a recent article written in HBR, “study after study puts the failure rate of mergers and acquisitions somewhere between 70 per cent and 90 per cent”. Mergers fail for a variety of reasons, one of which is the lack of HR support or the general inability to manage employee attitude during the process.
Research points at the following three factors as primary reasons mergers go wrong:
- Not enough focus on creating value in the workplace
- A struggle to retain employees and personnel
- Incompatible management patterns
The HR can jump into all of these functions and make the process easier. In this article we look at the roles HR departments play in the merger and acquisition process. We discuss this by mentioning the ways in which the department can step in to transform a failure into a success story.
Know What and Who You’re Acquiring
The very first step in the process is to know what and who you’re acquiring. Success begins with due diligence at the right step. Typically, vast sums of resources, money and time are wasted on assessing the financial performance of the organization. Organizations put little focus on understanding the human side of the equation and how people from different cultures will need to be fused together.
Understanding development needs is a fundamental part of the process and should clearly be managed.
Plan to Succeed
HR plays an integral role in the merger and acquisition process as it can help plan to succeed. With assistance from the HR department, organizations can determine a particular transaction is useful and should be proceeded with. HR departments should take their time to study the implications of the project for the team and on an individual level.
Coach Leaders
HR departments should use their years of experience to support leaders coach employees. Among the most important ingredients to success in mergers is accountability and clarity. Both of these measures allow businesses to move forward and become better at what they do. The merger and acquisition process can be made easier when leaders turn into coaches and learn how to take people forward regardless of their previous work cultures and environments.
We at JS Benefits Group have worked with numerous clients to help them manage acquisitions and mergers in the workplace. You can get in touch with JS Benefits Group immediately to discuss and devise a plan.
