Consider it validation of your managerial genius. They just need an education—to get the vision. So, stay on message and close that deal. Hire a PR firm if necessary. You can relax after the deal snug, safe and sound in the realization that if anyone really believed it was a bad move, they would have stood up and made their feelings known, regardless of your own enthusiasm.
Finally, remember to make a visionary speech after the closing. At the podium, take a deep look into his or her eyes, give a warm embrace and love that person with all your soul. Unfortunately, research indicates that a majority …… […]. You must be logged in to post a comment. Resources for Sound Business Decisions. Toggle navigation. Featured Products. Unfortunately, research indicates that a majority …… […] Log in to Reply.
HR is now tasked with selecting employees to be let go because of redundancies, create a new, unified corporate culture, help implement work groups, and a whole bunch of other issues that involve the people from both companies. If HR specialists are successful in addressing employee concerns, they may substantially improve the new company's chances of success. SHRM states that one of the biggest problems is uncertainty. Perhaps equally damaging, and just as costly, are those people who stay on the payroll but who emotionally "check out" and do not perform at their previous levels of productivity.
How to manage a merger? Ask the CIO who's done it 21 times
HR plays a pivotal role during the whole deal. Mainly, HR is tasked with the due diligence process, which aims to look at possible pitfalls of the merger or acquisition on a talent level. If you have two organizations that have cultural conflicts, they need to be addressed up top if everything is to go over smoothly. Thus, it is imperative for human resources to have a firm understanding of the work culture of the organization wherein they work, along with the work culture of the other organization.
Besides culture, you also have to check for other things like how benefits will change when the two companies come together. Will they be the same? Will the policies change dramatically? And what can you do to make the process easier?
This is where HR will need to work together to see what benefits and programs from each company need to stay and which need to go. The benefits swap over can be incredibly challenging and needs to be examined thoroughly by everyone involved. The HR team needs to also be fully aware of policy issues that can lead to lawsuits. These lawsuits can be for a number of things from sexual harassment to EEOC violations and many others.
How to manage a merger? Ask the CIO who's done it 21 times
The last thing you want is for there to be a hole in your policies where actions can impact the process. This step requires working closely with your legal team - or both legal teams and maybe a third-party - to ensure that you and the newly formed entity is complying with all local, state, and federal laws. There are tons of laws out there that go into how workers rights that are laid out by the EEOC and other groups.
Far too many for us to dig into here.
With that said, as part of the due diligence process, a strong legal team is required, one that can examine and correct any potential oversight. We must note that we are not lawyers and this blog is meant to be a high level overview of what needs to be done during a merger or acquisition. Always consult a legal counsel before implementing any sort of transition event.
The takeaway here is that HR needs to be involved in the entire process. The department needs to closely examine the companies cultures to make sure they fit, addressing any issues that might arise. HR needs to be explicitly involved in the due diligence process for a number of reasons and policies need to be put in place before the event.
Again, after all of this over, the name of the game moves to integration. How are you supposed to get all of these new people to work together? Will they want to work together? Will there be too much turnover? These are all concerns. After the merger or acquisition, HR is now primarily tasked with making sure everything continues marching forward. As we touched upon earlier, new policies will need to be created that help smooth over the transition. This means HR will have to create new benefits policies, new vacation policies, new drug testing policies, and everything else in between.
People are going to have a lot of questions. What happens to their PTO?
By the numbers
What about healthcare? Do they have to personally take any actions to ensure these policies do what they are supposed to?
Many of these policies might stay the same because there are best practices that many organizations use. It can be, however, a good time to update dated policies to make them more enticing and accurate based on the latest research and HR trends.
When it comes to merger and acquisitions, you have whole companies coming together under one roof. This means that there will be a lot of people who are no longer needed at the new organization. It all depends on if the merger or acquisition will dissolve both parties into one unified one. Sometimes, departments continue working on that specific brand instead of being completely integrated. Take, for example, how Ebay bought PayPal back in Instead, PayPal became a subsidiary under eBay, making it technically the same business overall while still having very much its own corporate culture, departments, etc.
Either way, downsizing is likely needed when it comes to mergers and acquisitions because redundancies happen. Will your organization need two different marketing teams? The ultimate success of such a deal will be a long-term story. Bonus communication tip: Rezaei notes the importance of aligning your message with the rest of the executive team.
M. Beth Page (Author of Done Deal)
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How to manage a merger? Ask the CIO who's done it 21 times. By Kevin Casey October 12, How do they operate? What are their major objectives and programs?