Mergers and acquisitions (M&As) are often made out to be prosperous marriages that would bring all parties involved more success, but the truth is much more complicated than that. Many M&As use a process that often leaves both sides feeling dissatisfied, leading to a less than successful agreement. Without a change to this process, a company’s shareholders, customers, and employees will bear the brunt of the financial impact, preventing a potentially rewarding arrangement from coming to fruition.
One of the most significant reasons for M&A failure is because companies tend to neglect their work culture and leadership. Without proper attention to their human capital, people will feel anxious about fulfilling their new roles, leading to poor working relationships, employee dissatisfaction, and worsening service. Fortunately, human resource consultants in Edmonton can step in to support and recommend a better way to do M&A that will definitely lead to success. Here are three ways they can help:
– They Can Help Define the Company’s Target Culture
Since human capital is the biggest problem in successful M&As, human resources can help the companies define what the combined culture hopes to be and create a plan to achieve exactly that. Successful mergers require concrete visions of the resulting culture, especially when people of different workplace cultures come together and start adjusting to new environments. Without an actual roadmap or structure, employees will feel lost, resulting in chaos and the feeling of insecurity.
Fortunately, HR consulting services can engage at the start of the integration planning process to identify the desired culture. After that, they’ll map out the required elements to make it happen, essentially forming a strategic planning guide that will make other decisions like choosing leaders, aligning business functions, and finding the right operating model, easier.
– They Assist in Choosing the Right Leaders
Many companies choose their leaders by their experience, skills, and knowledge, as these qualities imply their capability to make well-informed decisions and perform the requirements of their role. However, human resource consultants know that adding leaders to the team that are forward-thinking and a good culture fit has proven to produce more desirable results. These leaders naturally have a curiosity that drives them to find new, innovative ways to solve problems instead of sticking to old, traditional methods.
Selecting the right leaders with the desired attitude, experience, and mindset is the best way to create the target culture you have in mind. The success of an M&A deal can be contingent on the kind of leadership a company has, not the systems, processes, or programs. If leaders foster a good working relationship with each other and intend to keep it that way, then an M&A will be more than likely to succeed.
– They Bring in More Advanced Technology
Involving HR at the get-go allows you to identify the technology you need to create a successful merger. They’ll be responsible for developing and fine-tuning strategies to foster a healthy environment conducive to your target culture. However, data-driven technology will be valuable to make the right decisions. Bringing HR on board during the early stages of planning an acquisition strategy will give you access to the latest digital solutions since they’ll know what is necessary right away, increasing your chances of success.
For instance, technology can monitor the implementation of new work processes, manage KPI’s, establish leadership consensus on the company’s direction, help in the selection process of employees, and many more.
Your people are your most important asset, and prioritizing them during an M&A will help you create better, more effective strategies, resulting in a seamless transition. By working with an HR consulting service, you’ll raise the company’s employment standards and enjoy a successful merger.
Involvi Consulting is a team of human services consultants in Edmonton helping small to medium businesses with anything related to their human capital. We understand that your employees are your most vital asset, so we can provide you with practical solutions to exceed your human resources needs. Book your free 30-minute consultation with us today to learn more about what we can do for you!