Upload
geoffrey-lewis
View
214
Download
0
Tags:
Embed Size (px)
Citation preview
The Human Factor of Mergers & AcquisitionsHOW TO RETAIN TOP PERFORMERS
POST-INTEGRATION
Andrew Partheniou | Jimmy Song | Simon Foucher | Stefanie Perrone
INTRODUCTION IDENTITY CULTURE MOTIVATION COMMUNICATION CONCLUSION
Current State
70% M&As fail to deliver on targets• Business focus on Financial• OB Focus on People
M&As are disruptive life events • Lost of identity• Culture clash• Uncertainty / Stress
Need to consider the “Human Factor” in M&As
INTRODUCTION IDENTITY CULTURE MOTIVATION COMMUNICATION CONCLUSION
Key Success Factors
Human factors are critical to ensure retention of key people
Identity Culture Motivation Process
COMMUNICATION
INTRODUCTION IDENTITY CULTURE MOTIVATION COMMUNICATION CONCLUSION
Identity
Identity
Social
Circles
Family
Work Place
Work organization play a crucial role in shaping identity
INTRODUCTION IDENTITY CULTURE MOTIVATION COMMUNICATION CONCLUSION
4 Approaches to post-merger Identity
Assimilation Confederation
Federation Metamorphosis
Excpet for federation, all outcomes imply changes
INTRODUCTION IDENTITY CULTURE MOTIVATION COMMUNICATION CONCLUSION
Assimilation & Metamorphosis: cope with new identity
Build Trust
Justice
Sell Benefits
Stability
Goal: Reduction of insecurity and stress for individuals
INTRODUCTION IDENTITY CULTURE MOTIVATION COMMUNICATION CONCLUSION
Culture Integration – OverviewHow to Merge Culture
Successful culture integration reduces chances of failure
Pre-Merger
Planning
Implementing
Reviewing
What is Culture?• Shared Meaning• Understand Norms and
ExpectationsWhy is it Important?• Conflict Avoidance• Aligns Expectation
INTRODUCTION IDENTITY CULTURE MOTIVATION COMMUNICATION CONCLUSION
Stage 1 – Pre Merger
Innovation
Relationships
Autonomy
Performance / Reward
Risk
Key to success is to clearly identify culture differance
INTRODUCTION IDENTITY CULTURE MOTIVATION COMMUNICATION CONCLUSION
Stage 2 - Planning
Object
• What dimension to integrate
Goal
• Clarify
Method
• Which ones
• Time Table
Budget
• Training• Other
items
A day invested in planning saves a week of issues in implementation
INTRODUCTION IDENTITY CULTURE MOTIVATION COMMUNICATION CONCLUSION
Stage 3 - Implementation
Create atmosphere of integrationClarify NormsBuild TrustCommunicatePrepare for ConflictEquity
Many tools to chose from to integrate culture
INTRODUCTION IDENTITY CULTURE MOTIVATION COMMUNICATION CONCLUSION
Stage 4 – Review Stage
• Results Vs. ExpectedFind Difference
• Document findingsExplain Difference
• Revise technique• Apply at next merger
Take action
Continuously improve integration performance
INTRODUCTION IDENTITY CULTURE MOTIVATION COMMUNICATION CONCLUSION
Identify Top Executives
Only invest in keeping key executives
• High Salary• High corporate
ROA• Companies of
comparable size
Executives
INTRODUCTION IDENTITY CULTURE MOTIVATION COMMUNICATION CONCLUSION
Top guns at the Non-Executive Level
Combination of 2 our of 3 MethodsDocume
nt & Data
Approach
SurveysSocial
Network Mapping
Target the right individuals
INTRODUCTION IDENTITY CULTURE MOTIVATION COMMUNICATION CONCLUSION
Intrinsic Retention Programs
Executives
• Promotion Possibilities
• Power shift from shareholders to managers
• Parent CEO controls high share volume
Workforce
• Address job security concerns
Maintain intrinsic motivation
INTRODUCTION IDENTITY CULTURE MOTIVATION COMMUNICATION CONCLUSION
Extrinsic Retention Programs
Avoid going down Maslow’s needs hierarchy
INTRODUCTION IDENTITY CULTURE MOTIVATION COMMUNICATION CONCLUSION
Organizational Citizenship Behaviour
Communication satisfaction is positively and significantly related to OCB
Increase perceptions of
OCB Dimensions
Increase OB through effective
communication
Increase Employee Happiness
(Satisfaction)
Increase employee loyalty and retention
INTRODUCTION IDENTITY CULTURE MOTIVATION COMMUNICATION CONCLUSION
The Communication Triad
Communication and trust increases organizational commitment
Communication
Organizational
CommitmentTrust
INTRODUCTION IDENTITY CULTURE MOTIVATION COMMUNICATION CONCLUSION
Formal and Informal Communication
Reinforce leadership credibility and forge trust
Strategize
• Strategize and prepare a formal communication plan
Truth
• Use a truthful approach at all times• Remain consistent
Timing
• Implement frequent communications• Over-communicate
Reinforce
• Manage Change• Use “Transition Teams”
INTRODUCTION IDENTITY CULTURE MOTIVATION COMMUNICATION CONCLUSION
Process for Communication Transfer
• Knowledge blind spots• Knowledge Mismatches• Knowledge Jail
Communication fragmentation causes
• Identify and select process information• Plan how information is collected• Document information transfer• Translate into useful applications (e.g.: Framework)• Reinforcement (e.g.: transition teams)
Mitigation Approaches
Formalized process changes reduces employees uncertainty