M&A (Role of HR) - 8. Successful Deals

With so many impending challenges & nuances, can there be successful M&A deals. Well, the answer is YES & NO.

We need to acknowledge the fact that most of the human resource strategies in mergers and acquisitions are reactive and descriptive, and only recently have tools been devised to proactively investigate and alleviate potential obstacles.

Moreover, most of the research examines cultural and human resource matters for a relatively short period, but they need to be studied on a long term basis.

However there is a way out & that is treating a M&A Activity like a project with no emotional baggage. Thus, the first thing you need to do is to develop the ‘HR’ Project Plan

A project plan would be this critical document that directs and supports the whole process of integration and should be continuously updated to include the latest developments. The project plan should define the tasks to be performed in order of their priority.

The owner for each task has to be identified and the responsibilities assigned. It is also important to note that the owner enjoys the authority to carry out the task successfully. Each task has to be given a due date of completion and the owner should keep track of the developments and record them.

There should be common forum for exchange of information among the different task owners. In all probability, these tasks would be interrelated and the success of the project depends on effective coordination among all the task owners.

The project plan should also take into consideration some unavoidable hurdles that may arise and provide for contingencies.

Stage 1:-
Ø Conducting thorough due diligence of all areas - I suggest it should always be done by an outsider.
Ø Cultural assessment - Again to be done by an outsider.
Ø Planning for combination which minimizes problems at a later stage - Specifically this is the stage of an open dialogue & hearing the un-heard so far & anything that you miss for discussions may create issues later on.
Ø Creating practices for learning and knowledge transfer - Again critical from the point of view of the importance to the organization.

Stage 2:-
Ø Communicating the benefits of merger/ acquisition
Ø Designing / implementing teams
Ø Creating the new structure strategies and leadership
Ø Retaining key employees
Ø Communicating to and involving the stake-holders
Ø Deciding on HR policies and practices
Ø Deciding on who stays and who goes
Ø Establishing a new culture, structure, and HR policies & practices

Stage 3: -
Ø Solidifying the leadership and staffing
Ø Assessing the new strategies and structure
Ø Assessing the new culture
Ø Assessing the new HR policies & practices
Ø Assessing the concerns of stakeholders
Ø Revising as needed
Ø Learning from the process
Ø The new entity must learn

Well even if you do all of the above, there is no guarantee for a 100% successful M&A. Reason is - people. They will make it or break it. HR can only try & ensure they educate, inform & train & execute the M&A project with a strong bent of openness & honesty.