The Leading Edge - Summer 2011 - PKF - 18

workplace

Acquisition leads to merger of office policies, cultures
By Mary Ellen Harris and Tyler Ridgeway, Kreischer Miller

QUESTION:

Our mid-sized company acquired a smaller business earlier this year. Our policies and culture are a little different. How do we go about making sure the acquisition is successful on a personnel level? One of the significant challenges associated with acquisitions is the integration of the people and cultures. Successful integrations are those where the employees of the two legacy organizations are able to come together for the greater good of the newly combined organization. This, of course, is easier said than done. Many factors are outside of the control of the leadership team. However, some specific actions that the leadership does have control over will improve the probability that the integration will be successful. Tell employees things will change. The most common mistake during the integration process is that management makes statements, frequently during well-intended communication meetings, promising employees that things will stay the same or be very similar. This is factually not true. Practically everything will change: procedures, policies, seating assignments, compensation, benefits, etc. will be impacted by the acquisition. The best course of action management can take is to state very frankly that there will be significant change in the upcoming months and years. Have a communication plan. Frequent communications with employees is essential to retain their engagement. When facts are absent, employees make things up. Combat the rumor mill by providing as many truths as possible. During the first few months following the public announcement of the

ANSWER:

acquisition, management should provide weekly updates at a designated time and day. The consistency of communication will provide employees comfort because they can expect to receive updates at regular intervals. Take your time when making decisions. Often, the frenetic pace associated with the integration process causes a sense of urgency to have everything decided right away. Rushing to make decisions can result unintentionally in creating additional change and anxiety for your employees. The best course of action is

could set up specific teams with representatives from each step in the process. The key is to have a cross-section of people and to share who those members are so employees know their best interests will be represented in the decision-making process.

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to slow down and take a methodical approach to decision-making that involves a plan or a schedule of all of the major decisions that need to be made that takes priorities into consideration. A systematic process for analysis and decision-making increases the probability for success. Include people from both of the legacy companies in the decisionmaking process. If only employees from the acquiring company are included, the employees from the acquired company will resist the changes and disengage. Inclusion and collaboration are essential for gaining buy-in and support for the new direction, new policies, procedures, etc. There are a variety of ways to include a cross section of employees. For example, you

Adopt a “we” attitude and demonstrate the “we” attitude at every possible opportunity. Mergers and acquisitions inherently result in us-versus-them attitudes at all levels. Therefore, it is imperative that all levels of management clearly demonstrate by their behaviors and the words they choose that they are committed to the collective “we.” Middle management are the most at risk for perpetuating the us-versus-them attitude because they are in the trenches of the day-to-day operations and frequently have to juggle the challenge of keeping the operation going while attempting to keep employees engaged and focused on performing their respective jobs. Pay close attention to your middle management level. Check in on them regularly and provide them with as much support as possible. If this group of employees is on board and supportive of what the overall organization is trying to accomplish, then the other employees will be too. This list is not all-inclusive, but is intended to provide you with a quick, actionable list of essential items associated with successful acquisitions. It is our intention that these five actions will provide you with food for thought and help generate ideas and thoughts that will aid in the integration process. LE
Mary Ellen Harris is director, human resources, and Tyler Ridgeway is director, executive search practice, at Kreischer Miller, a Leading Edge Alliance firm.
SUMMER 2011

The Leading Edge - Summer 2011 - PKF

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