An Eight-Step Process for Ensuring Your Acquisition and the Integration are a Success

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

How to Conduct Your Annual Performance Review Process

At this time of year many organizations are beginning their annual performance review process. As you start this process you might find the following information to be useful.

• Send a note out to all your managers giving them a specific timeline, i.e. as to due dates when payroll needs the salary increase information, when salary increases will be effective, when the forms must be returned.
• If you developed a salary increase matrix be sure you explain to your managers how it works and any specific guidelines you want them to follow.
• Notify all employees they need to complete a self appraisal regarding their performance during the last 12 months. This self appraisal should include how they performed against their job description and goals/objectives plus their views on their development needs. Once this is completed they should give a copy to their manager. Managers should review this document prior to completing the employee's review.
• Ask your managers to be sure they get input from other departments if the employee was involved in other projects outside their own department.
• Managers should be sure the setting is right when they conduct the actual performance review. Here are a few things to consider;
• Schedule the meeting in advance and set aside at least 1 hour.
• Conduct the review in a place other than your office. Use a conference room, go out to breakfast or lunch.
• During the meeting, don't allow phone calls, emails, etc., this time is for communication without interruptions.
• During the meeting be sure to review the employee's self appraisal, other managers input, and your input regarding the last 12 months of performance. Give examples where you can.
• Once the meeting is over the manager should complete the actual performance review form noting the appropriate comments that came up during the one to one meeting.
• After the review form is completed ask the employee to sign the performance review form and make any comments and return it to you. Before sending the final form back to human resources give the employee a copy of the form.

Just remember the important outcome from a performance review is "communication." You want to be sure all parties leave this process with an understanding of what was done well, the areas needed for improvement, what development is needed and what both parties will do to drive success in the future.

Jim Geier
President and Founder
Human Capital Consulting Partners

H1N1 in the WorkPlace: Practical Advice

I had the opportunity to attend a seminar last Friday, December 11, 2009 sponsored by KYW Radio 1060 http://www.kyw1060.com/  in Philadelphia, regarding H1N1. The panel was made up of representatives from state government, healthcare, industry and employment law.

My takeaways from this session were as follows:

1. Up to date information is posted daily on the CDC website. http://www.cdc.gov/
2. Be sure to check your state websites as well. In Pennsylvania the site is, http://www.health.state.pa.us/
3. Key is to be sure you "Keep sick people home."
4. Employers might need to look at their sick policies to allow employees to work from home.
5. Employers might need to look at their sick leave policies to determine if doctor's notes are really needed  to prove illness during this period of H1N1.
6. Questions employers have regarding treatment of policies and procedures during this period should be referred to their employment attorney for clarification.
7. Employers might consider changing current policies that deal with sick time during the flu season. Once flu season is over can go back to current policies but remember to communicate to all employees.
8. Continue to communicate to employees the importance of washing hands.

Per the panelists the second wave of H1N1 was coming to an end and now we are entering the time for seasonal flu. Could be a third wave for H1N1 which will be sometime in the Spring.

How to Select the Right HR Executive For My Company

Over the years whether in my role as a corporate VP of Human Resources or today in helping companies with their HR strategies, processes and programs, the question always is "How do I select the right human resources executive for my company."

To me the processes are not that much different whether you already have an HR department or you are just beginning to establish your first formal HR department. However, today my thoughts/suggestions are for those companies who are just beginning to establish their first formal HR department. For those of you just beginning the following are questions or steps to assist you:

1. Why you are adding this new function/position?
2. What are your expectations for this postion?
3. Who will the position report to in the management team? (Will who the position reports to impact the type of candidates who apply for the position)
4. What type background and experience will the HR person need to have to be successful at my company and in the job?
5. Do I understand the current HR processes and programs that are in place today in my company?
6. Do I know the required HR processes and programs that are needed in my company in the future in order for us to be a successful company?
7. Once you answer the above questions, then you need to decide, should I hire someone part-time, full-time or should I just outsource the entire function?
8. If you decide to hire someone on your staff then you need to develop a job description or job profile that outlines the duties, responsibilites, knowledge and competencies required for this position?
9. Now that the job description/profile is completed, what compensation package do I need to put in place in order to attract and hire the right person for the job?
10. How will I find this person? (Should I engage a search firm, advertise on job boards, network with my peers)
11. Once candidates are identified how do I screen out the right people for my job?
12. What interview questions do I ask the candidates to be sure they have the right background, experience and competencies to handle my HR job?
13. Who at my company should be involved in the interview process?
14. How do I tell if the person will fit my company culture?
15. Once a candidate is hired, what are the next steps?
16. Should I implement an orientation or onboarding process over the first few months?
17. What goals and objectives or expectations should I outline for the first 6 months and 12 months?
18. Who will explain the company culture, how decisions are made?
19. How often will I give feedback so the new person understands where they stand in the job?
20. What does success look like? 

Hopefully, you will find this above list of questions or steps to be useful as you build your HR fucntion.Good luck and be sure to hire the person that works best for you and your company.

Jim Geier
President and Founder
Human Capital Consulting Partners

Importance of On Boarding Process for New Hires

How many of us think it is important to assist new hires once they join our company? How many of us explain to new hires our company culture? How many of us set goals and objectives in the first six months for new hires? How many of us explain to new hires how decisons are made in our company? How many of us have been told by our employees that the first year of employment was a difficult transition and there were times they thought about resigning?

One way to address these questions/concerns is to establish a formal "on boarding " process in your company.  A process could include the following:

1. A mentor or buddy that can help answer any questions about the company culture, how decisions are made, how their boss makes decsions, etc.
2. A formal plan for the first 30, and 60 days that allows for a smooth transition into the company.
3. Meeting with their new staff,especially if they manange people,  one on one during the first two weeks.
4. Formal goals and objectives for the first year after the first 60 days of employment.  
5. If their superviisor be sure to meet with the new employee once every 2 weeks to understand issues, concerns, and how best to ensure their success.
6. Change the initial goals and objectives especially if they don't fit the needs of the business.
7. During annual performance review ask the employee what could have been done better during the first year to have assisted with their tranistion.

2010 Salary Budgets

It is that time of year when many of you are doing 2010 budgets and trying to determine during these crazy economic times what the right merit increase budget might be for 2010. The following are some questions to consider before making a final decision on 2010 salary budgets:

1. What are your company sales and  profits projected to look like at the end of 2010?
2. What type of expenses must your company invest in to keep up with your normal business operations?
3. What are your current staffing levels, to high, to low, not enough?
4. What type of operating expenses can be eliminated in 2010, i.e. advertising, consultants, travel, etc?
5. What type of percentage increases did you receive in your benefit programs?
6. Are your current base salaries competitive?
7. Should we have a merit pay system or cost of living pay system?
8. Will our incentive plans have a resonable payout to our employees?
9. Are we losing our good people?
10. Do we have a problem hiring good people?

There are alot more questions that could be listed but it really comes down to what can you afford. Be sure to collect background information on what is being done in your industry, size company, or geography and this can be found by doing searches on the web.

In closing, you need to make the decision on your 2010 merit budget that is right for you.

Jim Geier
President and Founder
Human Capital Consulting Partners

Importance of Developing "Culture" in Your Organization

Over the last two days I attended BIOTECH 2009 http://www.biotech2009.org/  a gathering of over 800 people in the life sciences industry held in Philadelphia and sponsored by PA BIO http://www.pennsylvaniabio.org/  and BIO NJ. http://www.bionj.org/

Interesting two days but what I found most interesting and refreshing was a fireside chat that Debbie Hart, head of BIO NJ conducted with Fred Hassan, former Chaiman and CEO of Schering Plough. For those who don't know Schering was recently acquired by Merck.

One of the questions asked to Mr. Hassan was the importance of  "culture" in an organization.  He stated that culture was one of the key success factors for any organization. He defined culture for him to mean the need to have a :

• Road Map for Your Business 
• Long Term Plan/Outlook, and,
• Organizational Health 

Not sure his plan will work for all of us but you can't argue with his success over the last 30 plus years for patients, shareholders, investors and employees.

More information can be found about Mr. Hassan at

http://www.pehub.com/56027/fred-hassan-joins-warburg-pincus/

http://video.google.com/videoplay?docid=-3923563705954710811

http://www.chiefexecutive.net/ME2/dirmod.asp?sid=&nm=&type=Publishing&mod=Publications%3A%3AArticle&mid=8F3A7027421841978F18BE895F87F791&tier=4&id=566AC332AB644BF7BCF609A899977836