SET STRATEGY FOR SUCCESS
Having a solid grasp on the organization’s business structure, go-ing
forward, is critical.
“All the decisions the HR leader and team will be asked to shape
and deliver on are going to be to tied to supporting the new strat-egy
and operating plan coming out of the merger or acquisition,”
said Fullerton.
It’s a feat that involves making something concrete out of
the abstract.
“Everything you’re doing and everything you’re thinking about
– whether it’s rewards, leadership or staffing decisions – it’s not
about right now, it’s projecting out into the future,” she said. “What
are you going to need to prepare to win? You have to have a very
solid understanding of that strategic business path.”
Changes in work practices, decision-making styles, reporting
relationships, organization structure and operating models all im-pact
how employees will perform in the combined company.
“People are at the forefront of deal success or failure, and the
HR function plays a central role in driving the people agenda
throughout the integration process,” said Colombo. “People want
to know what is expected of them, what they are accountable for,
what decisions they own and what decisions they share.”
HR’s role in the establishment of the new organization can help
avoid business interruption, talent defection, declining sales and
market confusion over where the company is going.
SUPPORT LEADERSHIP
When it comes to leaders, the big decisions need to be made
right away.
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“People follow leaders,” said Colombo. “Swift selection of key
management positions early in the transition is critical to clarify-ing
authority, assigning accountability and mitigating the crippling
effects of uncertainty.”
Once they’re in place, HR needs to help them fully understand
– and then model – the culture of the new organization.
“Leaders need to be able to set the tone and vision for their
teams, and they need the education, tools and support to accom-plish
this,” said Langrock.
Along the way, HR has to be there for support.
“You have to quickly assess – and always be assessing – the
leadership capabilities of senior staff,” said Fullerton. “What are
you seeing and what will help the organization get from here to
there? Leaders need to develop the trust of the workforce. Not a
trust that everyone will be taken care of, but a trust that decision-makers
are balancing options and making decisions in support of
the greatest good. To the extent that people know the leaders and
they have a reputation, you can use that. If there are leaders from
the other organization, do anything you can to put a face on them
and humanize them, so you can meet that goal of trust.”
SHARE CLEARLY, SHARE OFTEN
“The next goal would be to have a full plan for the communication of
the integration activities that outlines for everyone the pace of change
and what can be expected. Communication of the plan has to be fre-quent
and varied,” said Langrock. Don’t assume that one mention of
anything in an e-blast or at a town hall meeting is sufficient.
Any change management requires clear, planned and ongoing
communication by HR, and an M&A situation is no exception.
SEVEN FUNDAMENTAL TENETS OF SUCCESSFUL INTEGRATION
(from PwC’s 2017 M&A Integration Survey Report)
Culture: Changing cultures in an integration focuses on three critical areas: 1) defining desired behaviours; 2) deploying key role
models; and 3) providing meaningful incentives.
Communications: Communication is the voice of the change management program for the integration. It helps stabilize and keep
people focused. HR professionals should support an open and transparent environment as employees wonder how the deal will
impact them.
Leadership: People follow leaders. Swift selection of key management positions early in the transition is critical to clarifying au-thority,
assigning accountability and mitigating the crippling effects of uncertainty.
Organization: Changing roles and complex interrelationships are not clarified with the publication of a traditional organization
chart. People want to know what is expected of them, what they are accountable for, what decisions they own and what deci-sions
they share.
Policies and procedures: Organizations enter transactions with fully functioning, self-contained processes and practices.
During integration, the combined company should clearly define the go-forward policies and procedures that will enable new
ways of working to achieve desired results.
Employee onboarding: A change management program would not be complete without appropriate employee onboarding and
training. The integration will have many changes in policies, procedures, systems and processes that will alter the way people
work. Companies should identify areas that require integration training and design effective development programs.
Incentives: Incentives play a key role in changing behaviour. During integration, it is important to recognize the contributions of
people that exhibit desired behaviours.
HRPROFESSIONALNOW.CA ❚ JUNE 2017 ❚ 21