In one of the merger and acquisition Rich faced, he saved 20% on running the business’s own IT services rather than outsourcing them, unlike what the larger organization did. Instead of good, that does more bad by making people discouraged when they need to stay optimistic. This does not need to be something at a big scale. The issue here is motivation. You can also use this time to discuss the criteria you will be using to make important personnel decisions during the merger or acquisition. You want to give them as much lead time as possible to prepare. Being able to cover rent and opening costs is not enough. However, there are ways you can ease up the transition process for yourself. I've lived through a few myself. 10 facts about CX that will blow your mind, The 5-Step Approach to a Successful Product Launch, Agile Implementation: from theory to practice, Top 16 Microsoft Project Alternatives of 2021. Once your Key Results have been identified, leaders are responsible for defining … ", How will employees' jobs change? Rhythm Systems 1111 Metropolitan Ave, Suite 330 Charlotte, NC 28204. This is in order to reduce the number of failed mergers and acquisitions. Who will be the single source of truth during the transition? Employees at ALSO READ: 10 facts about CX that will blow your mind. Make Leadership Present. Comment below with tips! If you think you are communicating too much, you most likely are not. This is where your communication plan and leadership team alignment will pay off.". Let's explore some tips for preparing your employees for a merger. Dixson, a personal branding consultant, recommends sending regular progress reports to your supervisor. Deal with merger and acquisition positively . The following four tips should help your organization navigate through the transition of a merger or acquisition with less difficulty: 1. Prepare your employees for change. Choose something you are skilled at and/or that you are passionate about. Make use of numerous online resources and research your business financing. However, you need to keep them focused on your company's core purpose. Provide too little information, and minds start to run wild with ideas about promotions, layoffs, and everything in between. Furthermore, this does not play well when looking for a job, because prospective employers can sense discouragement and negativity in candidates, which turns them off. Make it a Townhall style meeting, one where everyone can ask questions comfortably. Downsizing can be a difficult process for everyone. Treat your employees how you'd like to be treated. The key for HR when it comes to mergers and acquisitions is due diligence. Your human resources team plays a key role in preparing for and getting you and your employees through a merger or acquisition. It can be done, but it will be difficult.” Other considerations: Integration Plan: While your products complement one another, your systems and processes may not. During a merger, you may expect employees to be distracted. For these reasons, the first critical step to preparing your organization for an M&A is bringing leaders from both companies together to collaboratively establish the Key Results of the new organization — the three to five meaningful, measurable, and memorable objectives that every employee must work towards. If so, you may either continue with your job as is or you may be reassigned to a new department with a new set of responsibilities. Bahn has three words for you: do your homework. By Opting-in you will get nTask paid plans at an incredible 10% off for an entire year. 2. nTask is here. Your employees might belong … Do your homework, and see how you can contribute to your new responsibilities. Case studies – Using employee feedback surveys post-acquisition Ready to speak with a mid-market expert? It is essential that the concepts of valuations (shareholder value analysis) be linked into a due diligence process. Go here to read the full article Many CEOs try to figure out how to tell employees about a merger, but you should make sure that you are open and honest about the situation. People care about where they work. Above all, you need to be positive about the changes taking place and believe in the direction the organization is taking. Just being good at what you do is not enough. Make them strategic partners." Dr. Bayer recommends not only staying positive but showing positive behaviors, too. How will your training be delivered? The founder and chief executive of Talent Zoo, Myers agrees that bad habits can destroy one’s career, but the worst part is people rarely realize it. The challenge of training multiple audiences simultaneously would likely benefit most from a blended learning solution. Rich Casselberry recommends preparing an “elevator pitch.” This means learning to succinctly talk about what you can bring forth to the larger company that they didn’t previously have. According to an article on Monster.com, "Even if you're the company that's taking over, some of your people will have to alter their current roles or take on brand new ones. ALSO READ: The 5-Step Approach to a Successful Product Launch. If there is a merger on the horizon, make sure you inform your employees ahead of time, so they have more than enough information about what is happening. If this is the case, try to prepare for your new job. Organizations need employees that can work well together. Document your work and compile a weekly status report that outlines your key performance indicators and the projects you have worked on. Rick Myers advises just how to curb that negative behavior at its core. Make notes on how you can collaborate with the new employees/departments to improve business outcomes, or how the added support and resources can aid innovation. You need to draw in and maintain your customers, too, so plan accordingly. Meet in groups or one on one—whatever makes your employees comfortable enough to be honest about their concerns. Yet it has to happen when a merger seems imminent. Changes are bound to happen in a merger; you can't avoid it. Calm the waters by being proactive, and by engaging your employees each step of the way. This way, even if there are layoffs or they opt to leave, they have an understanding of what their next step should be and where their strengths lie. Being part of a bigger company can further your career by enabling you to learn new skills and exposing you to … From cultural integration and effective communication to change management, don’t forget the human side of the merger. There are things that you can do to help prevent your company from becoming an M&A statistic. Ways to prepare and support your employees 5. In the case that you receive no severance package or job sustenance, stay positive and move on. Be honest with your employees that status quo will not remain, things are going to change. This involves working on the corporate culture of both, understanding the staffing issues that may come up, and many other things. If the target company employees currently receive higher compensation than your employees, for instance, a significant cut in pay or benefits … Employees would rather feel like they have too much information than not enough information. Manage your team, tasks, projects and more on a single platform. Key Elements of Company Merger Success . Layoffs, new bosses, office moves and policy changes are some of the top fears employees have during a merger or acquisition. As a mid-level employee, she knew it was coming; her company had announced a few months ago, but she hadn't heard any specific details other than it was going to happen. As part of the due diligence process, HR should lead the way in examining company policies and procedures and comparing them with procedures from the company to be acquired or merged. Even if there is the chance of a lay-off, it will probably come with a severance package. Try not to fly under the radar and be more proactive; in merger and acquisition, your management needs to make difficult decisions of retaining employees, and you need to prove your worth. Read the following article to find out how you can prepare your employees for an upcoming merger. Here are 4 Ways to Prepare Your Employees for a Merger or Acquisition: 1. Remind them why they are important, and how their role is critical to the company and its purpose. Communicate and be transparent —M&A is a stressful time for employees. Kirsten Dixson, co-author of Career Distinction: Stand Out by Building Your Brand, believes that going unnoticed may lead to your elimination. The acquisition will fail if employees from the purchased company feel that the buyer is dishonest and untrustworthy. Forming a strong leadership team with members from both sides of the merger or acquisition will help smooth out the kinks of the transition. This is why it’s important to become more self-aware and be sure you practice habits that are of value to the company. This is because it may give the impression that the employee is not interested in the organization. Answer questions honestly and promptly. Make use of numerous online resources and research your business financing. Tens of thousands of mergers and acquisitions take place each year, leaving many employees of the acquired entities feeling unsettled and unsure of … Valuing the Target and Setting the Price. "There are probably more differences between the two cultures than you might expect," says Aaron Hillegass, chief learning officer at … Find out how we help high growth companies execute their growth strategies and win! This is because, more often than not, merger and acquisition deal with eliminating redundant job descriptions and implementing entirely new working methods. Take it from Ed Longanacre, senior vice president of IT at Amerisafe. These changes go far beyond a new name and senior leadership; they challenge the core of an … So strong and deep seated are these fears that some theories even suggest employees tap into instincts developed in a primitive time when a change in environment could mean a life-threatening loss of food, water, shelter and safety. 3. When the time came for the companies to merge, there was confusion, misalignment, and miscommunication. The key when pulsing during a merger or acquisition is to make employee voices a critical part of the change. If the people who still have jobs want the merger to work, there’s a good chance it will. M&As can be a source of speculation and uncertainties. 1. He further adds that companies prefer people that are resilient. An open line of communication is quite possibly the most important step you can take when preparing for a business merger. Without further ado, proactively start looking for another job. “When working on a post-merger or acquisition integration, understand you will need to redo what you’ve done before. You need to draw in and maintain your customers, too, so plan accordingly. laws for successful mergers: 1. According to Insperity, "One of the biggest reasons mergers and acquisitions fail is due to poor change management. Employees will learn from you and will exhibit negativity if you do. If you land a good job, great! M&A transactions can be time consuming and stressful for a company and its management team. By listening to employees, communicating effectively, and doubling down on its unique culture and programs, LinkedIn was able to thrive, even during its acquisition. Don’t believe it? Business leaders need to stay focused on integrating the new company and keeping employee engagement high during the merger integration. ... employee benefits and labor matters, immigration, and international transactions. Fill in your information and click Sign Up. Keep the lines of communication open to help alleviate fears and anxieties that could negatively impact productivity. Notify them sooner than later. Instead of a severance package, you might actually be on the list of those who get to stay within the newly merged organization. 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