Knowledge@HEC - Special Issue - 巴黎HEC商学院研究专刊 - (Page 18)

Michel Lander BIOGRAPHY Michel Lander joined HEC in 2011 to teach consultancy skills and statistics. He received his Ph.D. in Management from the Erasmus University of Rotterdam in the Netherlands in 2012, holds an MSc in Business Administration, another in International Business Administration, and an MPhil from the same university. Building trust for successful mergers and acquisitions When negotiating mergers & acquisitions, trust between different parties can make or break deals. An innovative study based on interviews with chief negotiators in the Air France-KLM merger confirms that trust builds cyclically and can be transferred between the three different domains of negotiator relationships (personal, process, and outcome) to increase the chances of successful outcomes. It was at the 1998 World Cup final that the CEOs of KLM, Leo Van Wijk, and Air France, Jean-Cyril Spinetta, discovered their shared passion for sports. Attributing the success of the subsequent merger of two of Europe's largest airlines to that trivial event would be an oversimplification, but the informal encounter did get relations between the two CEOs off to a flying start, initiating the mutual trust essential to succcessful mergers. "The fact that the CEOs hit if off from the start helped them overcome a number of obstacles throughout the process," says Michel Lander. Trust was particularly crucial in the context of this merger, which was first discussed in the late 1990s, when the sector was more vulnerable than ever due to sudden, stiff competition from low-cost carriers and the loss of national protection due to single-market rules. What's more, the KLM - Air France deal marks the first time two flagship airlines from different nations ever even considered merging. DIFFERENT STAGES OF BUILDING TRUST In spite of the many challenges, the two companies did not start in a vacuum: they had existing reputations upon which to build trust, especially in terms of their respective national institutional standards. "France and the Netherlands have sound enough institutions that the managers need not worry about any legislative tricks," says Michel Lander. On a personal level, the airline industry is also tight-knit enough that the 15 CEOs knew each other and already had strong appreciations for the other's individual competence and integrity. "Leo Van Wijk says he perceived Jean-Cyril Spinetta as a man who keeps his word," says Michel Lander. As the CEOs began meeting more frequently, their time together simply strengthened that initial mutual trust. KLM was also in talks with British Airways, and some within the Dutch company perceived them as a better "cultural" fit than Air France. Jean-Cyril Spinetta told the researchers that any potential breach of trust between himself and Leo Van Wijk was averted through open and honest discussion of the matter, so that he never felt deceived. The growing trust between the two CEOs had a noticeable trickledown effect, as their positive relations set the tone for secondand third-tier negotiators. "If the CEOs like and trust each other, the next level managers have a feeling they have to make it work," says Michel Lander. For example, senior Air France executive Dominique Patry recalled exchanging meeting notes with KLM's Dave Del Canho-a strong signal that increased trust levels. "Behaviors create more durable trust than perceptions," notes Michel Lander. BUILDING TRUST ACROSS DIFFERENT DOMAINS Beyond their confirmation that trust builds cyclically, Michel Lander and Linda Kooning highlight their observations of transfers of trust between the three negotation relationship domains: personal, process and outcome. Trust is sometimes Knowledge HEC

Table of Contents for the Digital Edition of Knowledge@HEC - Special Issue - 巴黎HEC商学院研究专刊

Cover
Partner companies
Table of Content
公司治理 (David Thesmar)
Corporate governance
欧洲的可再生能源 (Andrea Masini)
Renewable energies in Europe
决策 (Mohammed Abdellaoui)
Why do decision makers underestimate rare events?
建立信任 (Michel Lander)
Building trust for successful mergers and acquisitions
产品线质量的高低端延伸 (Timothy Heath)
Extending product lines up and down in quality
制度变革 (Carlos Ramirez)
Institutional change
奢侈品市场 (Anne Michaut-Denizeau)
The luxury market
创业 (Anisa Shyti)
Entrepreneurship

Knowledge@HEC - Special Issue - 巴黎HEC商学院研究专刊

Knowledge@HEC - Special Issue - 巴黎HEC商学院 研究专刊 - (Page 18)

Table of Contents for the Digital Edition of Knowledge@HEC - Special Issue - 巴黎HEC商学院 研究专刊

Knowledge@HEC - Special Issue - 巴黎HEC商学院 研究专刊

Knowledge@HEC - Special Issue - 巴黎HEC商学院研究专刊 - (Page 18)

Table of Contents for the Digital Edition of Knowledge@HEC - Special Issue - 巴黎HEC商学院研究专刊

Knowledge@HEC - Special Issue - 巴黎HEC商学院研究专刊