How many times have you read about the perfect marriage of two companies? Analysts, bankers, and competitors all talk about how the merger of Company X and Company Y will be a boom for the market place. Whether they are shareholders, customers, or employees, the buzz in the industry is they will all prosper significantly one way or another and within 12 months.
Twelve months later the headlines read: “Why did the merger of Company X and Y fail so badly when it appeared they had everything going for them?”
And the answer is simple: the companies did not focus on the people side of the transaction. But seasoned professionals know that successful integration requires a sharp focus on human capital and culture.
Far too many companies make the mistake of acquiring another organization, only to attempt immediately to assimilate the new company into the original company’s existing processes, programs, and culture. That is why acquisition integration is often extremely painful and unsuccessful.
With more than 25 years of experience in executive human resources positions and consulting, I have advised dozens of company presidents, CEOs, and board members on strategies and processes that help ensure a successful acquisition or merger. With that experience and research, I have honed an eight-step process that provides proven strategies for successful integration of two disparate organizations.
Step 1: Understand the impact of the acquisition on your business strategy.
Step 2: Determine the cultural fit of the new company.
Step 3: Appoint an integration team.
Step 4: Develop a communications strategy.
Step 5: Assess the people.
Step 6: Select and retain the right people.
Step 7: Design and implement the right human capital programs and processes.
Step 8: Meet you business and financial objectives.
Good luck and more detail regarding these steps can be found on our website.
Jim Geier
President and Founder
Human Capital Consulting Partners
www.hccpartners.com
Monday, January 11, 2010
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