by D. Kevin Berchelmann | Jan 13, 2014 | Executive Improvement, Kevin Berchelmann, Miscellaneous Business Topics
One big, happy family… right?
Bain Capital. McKinsey. Deloitte… don’t take just my word for it; the single biggest reason for merger or acquisition failure is NOT costs, lack of synergy, incompatible strategy, etc.
It’s people. Failure to integrate cultures, directions, leadership and communities within an organization result in more failures than any market disapproval could muster.
Pay attention here: you’re paying big bucks for – usually – more than a simple asset. Realistically, even simple “asset purchases” are hoping for more than a simple Return on Asset; we’re always hoping for bigger, better returns that can only happen through the newly combined workforce talent. Again, “people.”
Let’s get right to it. I’m assuming you’ve competently determined that the merger or acquisition is a logical addition to your business. The technical part is fairly simple… a bunch of spreadsheets, a month or two of due diligence to verify the lofty promises, assurances, and statements from management. Now, let’s work on the more fickle side…
The most important thing to remember is communication.
Frequent, informative, helpful communications. The initial merger time is the most critical, since many of the employees in the acquired company will “overthink” the event, and may believe they will be summarily replaced.
Or, more important to key performers, that they’ll lose their “key performer” status.
Frankly, you may actually WANT to lose some of them, but don’t you want the opportunity, at least, to have some input to who stays and who goes?
If you intend to make cuts, announce them and do them quickly. The longer it takes, the worse the retention results. Be sure, if staff cuts will occur, that they occur on both “sides” of the merger equation, if you really want a successful post-merger story.
Read this closely: the longer you take to make the “who stays and goes” determination, the more high performers you lose. It really is that simple. Mediocre and poor performers simply fret endlessly, duck for cover, and hope to go unnoticed.
High performers don’t look at life – or their careers – that way.
And they have no intention of waiting around to see if you’ll give them a thumbs-up or thumbs-down. These people are infinitely employable, have probably got feelers out already, and in the absence of anyone helping them do differently, will look out for their own well-being.
Even to your detriment.
Next, assess the acquired company’s culture and strengths, and make the determination on what “works” for you, and what doesn’t. Once you determine what the “combined” culture will look like, no compromise — on either “side.”
Read that again. No Compromise. On the bus or off the bus. No one rides along for sightseeing. If someone – particular if influential and/or in leadership – gets to publicly buck the “new deal.” Like the three musketeers, it’s “All for One!.”
Remember — and this is ultra-important — there can only be ONE culture. Anything else will lead to fragmented actions, loyalties, and lack of direction.
Finally, be frank and open with the process. The worst thing that could happen is that the acquired employees lose trust in your integration process – they already ‘suspect’ you may not have their best interests at heart.
If my concepts above aren’t specific enough, here’s some detail on crafting a successful integration:
- Create an employee integration plan immediately. It takes hours, not days, don’t dilly-dally. Communicate that plan to others (both ‘”sides”).
- Execute to that plan immediately, quickly, and strongly. Patton was correct: “A good plan, violently executed now, is better than a perfect plan next week.”
Time is not on your side here. The longer it takes, the worse the outcome… guaranteed.
- Decide where you’ll compromise — and where not — and hold firm.
- Communicate, communicate, and over-communicate. Rinse and repeat. Even “nothing new to report” is better than silence.
People fill ‘unknowns’ with their own “knowns,” and they are generally not the information you’d prefer them using to make decisions.
- Clearly define roles, accountabilities, reporting relationships, and performance expectations. It’s the very core of the employee agreement.
- “It ain’t over ’till it’s over.” Don’t declare integration ‘victory’ too soon.
Prematurely hailing success has killed many an integration, as a couple of key people/groups look around and say “not from where I sit, bubba.”
Good luck. Fun but challenging stuff…
But that’s just me…
by D. Kevin Berchelmann | Oct 14, 2013 | Executive Improvement, Kevin Berchelmann, Miscellaneous Business Topics
Sometimes definitions can help. In improving leadership talent, it really does matter.
In the classic movie “Princess Bride,” Vizzini was fond of saying “Inconceivable!” every time something occurred that surprised him. Not once, but three of four times before Inigo Montoya (Mandy Patinton of Criminal Minds fame) finally said, “You keep using that word—I do not think it means what you think it means.”
Great word, sounded neat, not used correctly. The same frequently holds true when we use words like “Training,” “Coaching,” and “Development” interchangeably. They don’t mean the same thing, and their differences matter.
Training is foundational. It’s providing information, processes and methodology, in a controlled setting. It makes someone qualified to learn the job. Note I didn’t say “qualified to do the job,” but “qualified to learn the job.” Too often we like to think that Training = Qualified. It doesn’t. After training, people need relevant application and experience to actually master the skills trained. And they’ll need Coaching.
Coaching speeds up the experiential process, ensuring that an employee is gaining applicable skills as quickly as possible, and avoiding undue distractions in their growth. Sometimes remedial in nature, other times aimed at making good performance even better, coaching is always skill-specific, connecting the knowledge gained from Training to the relevance and proficiency acquired through practice and experience.
Development is preparation for growth and further success. It’s not about honing skills required currently, nor is it Coaching for improved performance, even for high performers. Development is providing new experiences and understandings in areas, topics, and focus not specific to an employee’s current job. Those last seven words are important: … not specific to an employee’s current job. (admit it, you went back and counted those words, didn’t you?). And unlike Training and Coaching —both specific, finite efforts—Development is programmatic, an ongoing process. Empowering to do part of a supervisor’s job could be development, as could be rotational assignments, higher-level skills training (leadership for non-leaders, for example), and most real mentoring efforts.
Development gets a lot more press than its brethren mentioned above, since most true empowerment effort are a form of development, and those frequently create that holy grail, “Discretionary Effort,” simply defined as those added efforts that employees are not required to give.
Now you get to say, “I do not think it means what you think it means.” And of course, you can carry a cool sword.
by D. Kevin Berchelmann | Jun 25, 2013 | Executive Improvement, Kevin Berchelmann
When it comes to leadership development strategies, in most circles, trust gets a bad rap- particularly with quantitative or technical people. Why is this the case? Simply because people tend to think trust is a soft and fluffy topic, with an impact that’s really more minimal than crazy consultants like myself make it.
Trust is the Driver Behind Discretionary Effort
When I discuss executive development issues with clients, I tell them there’s a pretty good reason for worrying about trust and its connection to discretionary effort. Discretionary effort is that extra element that your people don’t have to give you, but do. It’s above and beyond the requirements for keeping a job and anything greater than that minimum is solely the purview of the employee. The bottom line is they’re either going to give it to you or they’re not and that is almost entirely based on whether or not they trust you. (more…)
by D. Kevin Berchelmann | Jun 11, 2013 | Executive Improvement, Kevin Berchelmann
Measuring value for clients with clear, tangible results is important. But before measuring anything, we have to be very clear about what we’re trying to solve for. Without asking the right questions, it’s impossible to uncover any value, and measuring? Well, without a clear purpose, that’s simply a waste of time.
Identify the core issue correctly, then measure- there’s real value in that.
The Power of Asking Questions
The most powerful thing I do for any organization is to ask questions. The advantage of having a reasonably intelligent, well-intentioned third party come in is that I get to ask stupid questions and my career is not limited because of it. In other words, I can sit across the table from an executive and ask what he thinks is a dumb question. “Why do we ship those to China?” Well, okay, roll your eyes, get disgusted- then answer my question. I can assure you that I am going to push back on some of the responses. Asking questions is how I find where things are. (more…)
by D. Kevin Berchelmann | Jun 3, 2013 | Executive Improvement, Kevin Berchelmann
Some people want to place managers and leaders in nicely wrapped boxes with great big bows, and yet others talk about how vast the differences are between leaders and managers. But the truth is, figuring out if there is a difference between “managers” and “leaders” is largely an academic exercise. Even if there is a clear distinction that exists between leaders and managers, does it really matter?
A Distinction Between Managers and Leaders…If There Has to Be One
First of all, and for the sake of clarity, I agree with the idea that not all managers are effective leaders, but all effective leaders are at least competent managers. They have to be. Confused yet? Generally speaking, effective managers get things done and effective leaders get people together to unite behind a specific, believable vision to get those things done. (more…)
by D. Kevin Berchelmann | May 28, 2013 | Executive Improvement, Kevin Berchelmann
Walk into any modern bookstore, find the business section and look up on the shelves. It’s a pretty safe bet you’ll see more than a few books on leadership–charismatic, situational, you name it, it’s there. But when it comes to leadership for increasing revenue, there’s not much out there, and there should be. The key to effective leadership and ultimately success is based on making sure you have the right people surrounding you?
My focus on people isn’t to garner a “feel good” working environment, but to drive business success. I look to find how I can help organizations get to better places. I’m looking for real business achievement–increased revenue, retained earnings, ROI, these are the sorts of things I’m trying to help with. My argument is always that while there are several different ways to do it, the single most efficient way is through people. (more…)
