Successful Mergers—Not an Oxymoron

Mergers and acquisitions were at an all-time high in 2015.  There is some indication they will slow down in 2016 because it is an election year but probably not by much.  However, just because there are a lot of mergers does not mean they are successful. In fact, at least half of all mergers are not successful—which means, they don’t meet the long-term revenue goals set out that define success.

The first step most organizations take when considering a merger is to put a team together which typically consists of the CEO, the CFO, and maybe the Chief Marketing Officer.  So the focus is necessarily on the numbers—what is it going to cost us to make the deal?  What new markets will we get from this transaction?  How will this merger increase our revenue, our profits, and our shareholder value?

Missing from this team are experts to focus on the people issues. Savvy organizations are learning that the sooner they involve HR in the process, the greater their chances of success.  People drive the business and in any merger, it is extremely important, early in the game, to understand the strengths of each organization’s workforce and to determine who the key players are.  It is also critical to understand the organizational culture of each company and to determine if the cultures can successfully be merged.

Here are some of the ways HR can add value early in the merger process:

·       Identifying the talent in the prospective organization

·       Assessing organizational culture difference

·       Reviewing labor contracts, if applicable

·       Planning and executing layoffs, if necessary

·       Putting retention strategies in place to retain key talent

HR also brings experience in change management.  Many people fight change and people experienced in change management can head off some of the potential disasters such as a decline in performance or, even worse, the loss of the superstar talent that you wanted to take this new company forward!

Patrick Shannon, a San Francisco based partner in Mercer’s talent practice says, “Organizations need to think about the diligence around their talent decisions with the same rigor they use for their products, their operations, and their customer decisions.”  How will those decisions be made if HR isn’t represented in the process?

HR just may be the key to a successful merger so be sure to include them in every phase of the merger process.

What's Your Exerience

Recently, I heard a colleague talking about the customer experience. He had nine customer experience imperatives that he thought every company should practice.  I couldn’t help but draw the comparison between the customer experience and the candidate experience. So many of these imperatives apply to HR, especially in our roles of attracting the best talent to our organizations. Let's take a look at some of these imperatives.

Personalized and tailored experiences. It's no longer a one-size-fits-all world in many respects.  There are a great deal of tools and differing technologies that help us source and attract candidates to our organization. Custom tailor experiences for your candidates as you would for your customers. It’s the platinum rule rather than the golden rule that’s important. We’re not all alike, so treat other people the way they want to be treated not the way you want to be treated. For example, communicate with candidates using the media that they prefer and use and not the media with which you’re most comfortable. This means varying communication methods as well as sourcing methods. Know where to find your ideal candidate.

Provide advice and learning opportunities. Be a curator of information. For example, through blogs and white papers on your website, or through LinkedIn, share information about what your organization or industry is doing. Use storytelling to share facts and antidotes. Give people something to talk about. Get candidates excited about your company so they’ll want to work for you.

Be a part of their journey. Remember the job search is not just one experience at a time but rather it's the path that the candidate takes from the time they start exploring new opportunities to when they come to work for you. Their journey is made up of a countless string of experiences that relate to you: how they first heard about you, what their first visit to your website was like, what they may have learned about you on social media, their first interaction with someone from your company, what the interview was like – from the time they parked their car to when they met their potential future boss.  These are all part of their experience. Make sure their journey is a positive one.

Engaged employees. Consider the individual a candidate will meet when they first set foot into your organization – their future colleagues. If you have an engaged and friendly workforce it’s going to show – no shine – through to the candidate. Consider the story I heard recently from a young man pursuing his teaching certificate. On a visit to a local school to complete an assignment for his studies, he was blown away by the people he met. Students and faculty walking down the hall greeting him in a friendly manner – “Hi, how’s it going? Can I help you? Hey, who are you – welcome to the school.” It’s certainly a place he’d like to work.

Neither HR nor talent management work in a silo in their organizations. All the departments and parts of the organization work together and can learn lessons from each other. A business model that is built around positive experiences is a win for everyone!

What the World’s Most Innovative Organizations are Doing Right

Fast Company magazine does a yearly review of innovative companies.  In the most recent study published in March of 2015, they list the Top 50 Most Innovative Companies of 2014.  Not surprisingly, Google tops the list but there are others on the list that are lesser known but still innovative and interesting organizations.  Their study was conducted over 6 months time and they reviewed thousands of organizations.

As they reviewed the data they used, some trends emerged and we’ve summarized five of them for you to consider as you, hopefully, work to encourage innovation in your organization. 

·       “Exceptional is expected”—Google is number one on the list because its people execute at a high level often.  Word like exceptional aren’t often used in business but should be!  We all should be striving to do great work as frequently as possible and to take whatever our role is to new heights—not just once in a while.  I would love to work for an organization that expected me to be exceptional—how about you?

·       “Innovation is episodic”—interesting that only a few of the companies that made last year’s list are on this year’s list and the authors think that is not because those people “lost their edge,” it’s because innovation isn’t a constant in most places—it comes and goes!  This should remind us to grab on to an innovative idea when we find one and not let it go as it may never come again!

·       “Making money matters”—it’s nice to have a workplace where ideas are flowing but if those ideas can’t be translated into new business opportunities or improvements, they really don’t matter.  The really innovative organizations generate new ideas that result in moving the business forward and are self-sustaining.

·       “Happy customers make you happy”—their example of this is Yelp which works hard to reward its customers by adding features that make it easier to use their product. This is in contrast to organizations that were on previous lists that appear to be doing the reverse—making it more difficult to be their customer.  Do you listen to your customers and use that feedback to move your organization forward?

·       “Unlocking global talent unlocks possibilities”—they cite a company in Kenya, IHUB that is unleashing Silicon Valley potential by signing up 10,000 members, launching 152 companies, and expanding into Tanzania and Uganda.  Are you thinking globally for ideas and markets?

  Our world has become so focused on short-term results that we often neglect the ideas that have long-term impact.  What are you doing to ensure that your employees and dare I say you, are encouraging innovation?  If you’re not coming up with new ideas, what’s to become of you?  Robert Sefan writes in the Fast Company article, “Breakthrough progress often requires wide-eyed hope.”  Not something we think about in business today but maybe we should!

It is encouraging that Fast Company says, “Risk of failure and collapse are always with us. But the culture of innovation across the globe is more robust than ever!”