Navigating through a large corporate merger can be one of the most difficult challenges an organisation will ever face. Often, the commercial arrangements agreed in such a transaction can be complex enough. However, many mergers that fail, do so, not because of the commercial arrangements, but because of the way that people are managed throughout the integration or transition process.
We recently came across a useful video being publicised by the Australian HR institute which might be of interest to those of our clients that are about to embark on a large Merger or Acquisition. To check it out, please click on the following link:
In the video, Prof. Wayne Cascio, uses a recent merger between Bupa and MBF as a case study to explore “five key drivers” that can help organisations improve their success during Mergers.
The 5 key drivers detailed in the video are:
1. Develop a strategy that identifies how the merger will be integrated
2. A full-time integration team
3. Constant and consistent communication
4. Speed in integration is critical
5. Create a set of measures to track the performance of the new company
In the video, a number of key line managers from Bupa and MBF also offer practical advice based on this recent experience.
The biggest thing that we liked about this video was the fact that it described a range of clear initiatives that can be easily adopted by any company and that we know, from practical experience, work!
Above all, Cascio encourages us all to remember the the “4 NOs” of communication during a Merger!
1. NO secrets
2. NO surprises
3. NO hype
4. NO empty promises
HC consultants have a wealth of experience helping organisations navigate complex Merger and Acquisition projects. We also utilise a standardised People Due Diligence process to anticipate the specific, unique challenges that each organisation is likely to encounter PRIOR to doing the deal itself.
Is your company about to commence a large Merger or Acquisition?
Chances are you have already commissioned a legal, financial and commercial due diligence program. However, it is our experience that often unknown human resources, industrial, cultural or talent-related problems can be equally important considerations. Why not engage HC to give you a completely objective assessment of any people-related problems BEFORE you sign that sale and purchase agreement?
For further information on HC’s due diligence services, please click here to read our brochure.
Have you had experience in a merger of acquisition? Why not post your thoughts and comments here!