Evaluating the change an M&A brings, allows for continuous improvement of the change within the organisation and the M&A outcome itself. Continued adoption of the changes following the M&A needs to be monitored to ensure employees don’t slip back into old ways of working including cultural alignment.
Cultural alignment is important and a key to success. If we look at an acquisition, effectively buying a business, caution must be taken to not implement ‘our way of working’ on the incoming employees. This undercuts the reasons that may have made the acquisition attractive, so work needs to be done to take employees on a journey to a shared culture. Whereas there is usually more of an agreement with a merger for businesses to come together to form another, however, not that it makes it any easier. Common values are important to gain the cultural alignment and a workplace with purpose creates energy. It is therefore important that this be reviewed and reinforced and improved if required.
Aside from assessing the cultural alignment and the merging of employees it is important to determine how you will assess if employees are doing their jobs in the new desired way, which may also be new behaviours. If it is determined there are gaps in the way employees are doing things and that of which is required, then action needs to be implemented to close the gaps. It is also important to consider and determine why individuals may not be embracing the change and address the cause. Also, let’s not forget, it is said that it takes 66 days to form a habit, so it is important to ensure employees don’t revert to old ways. As always celebrating success is important, it is important to recognise individuals hard work in embracing change and celebrate success.
When the human integration fails, many key employees will leave, often with skills and knowledge that are not easily replaced – therefore, the asset value of the deal is compromised so by merging cultures, you create value. Just another reason, to ensure that the human capital integration has been successful and make time to refine the outcome.
Workforce Planning is an important component of planning before a Merger or Acquisition and through to reviewing and reinforcing the change to forecast and plan for staffing requirements.
HR Strategic Planning identifies current & future needs for an organisation to achieve its goals. With businesses plans being reviewed due to the external challenges now is the time to ensure the HR Plan is to! The strategic advantage that each business sought to gain through a merger or acquisition is the combining of their powers, created by different groups of people and these different groups of people were guided by different workplace cultures. It is through workplace culture that business strategy becomes business reality so it’s important to agree on a shared way forward before, during and after an M&A.
Contact us now to discuss how we can assist. Let us help you integrate for growth at Intégrowth.
At Intégrowth, we understand the importance of reviewing and reinforcing the change to continual improvement and ensuring the success of the Merger or Acquisition is maximised.
We assist with evaluating the post-Merger or Acquisition status and reinforce the change required by evaluating to ensure cultural alignment and successful merging of the workforce. We also assist with workforce planning and HR strategy planning for future growth.