In the same way a merger could eliminate the need for some jobs or departments, it can create positions that may fall under your skill level. The second task in mergers—adapting to changed operating models, such as new structures, processes, and governance—poses some of the most visible and difficult issues for employees. Becky Kaetzler is a partner in McKinsey’s Frankfurt office, Kameron Kordestani is a partner in the New York office, Emily O’Loughlin is a senior expert in the Boston office, and Mieke Van Oostende is a senior partner in the Antwerp office. Every deal has its unique challenges and clarity on how to handle the “people issues” will increase chances for success. 1. The main objective of the research is to present, compare, and discuss the results of employees’ interpretations of their experiences of the change in the merger of the two consulting firms. Companies can develop a robust change-management plan around the quadrants of the influence model: building understanding and conviction, employing reinforcement mechanisms, developing capabilities, and ensuring that executives role model the changes (Exhibit 3). Use minimal essential Another advantage to a merger, particularly when it results in a more financially stable business, might be the possibility of a higher rate of pay. 3. Southeast Asia’s super apps Grab and Gojek have made significant progress towards a possible merger, Bloomberg reported this week. cookies, McKinsey_Website_Accessibility@mckinsey.com. The inevitable cultural differences between the two merging companies must be resolved, from the more obvious issues (such as attitudes toward the work–life balance and employee empowerment) to less noticeable ones (feedback styles, directness, punctuality at meetings). A company merger can bring on a high level of stress among the employees on both sides of the merger. Handling tough employee questions ahead of a merger: A guide for HR Flickr.com. The onus should be on those employees who will be directly affected by the change, and managers need to be very aware of the vibes in their departments. When two companies come together, the merger may create an abundance of employees who are no longer needed. Copyright 2021 Leaf Group Ltd. / Leaf Group Media, All Rights Reserved. De très nombreux exemples de phrases traduites contenant "merger employee" – Dictionnaire français-anglais et moteur de recherche de traductions françaises. We use cookies essential for this site to function well. Legal and regulatory restrictions can make it difficult or even impossible for the merging top teams to have the right discussions in the early stages of integration planning. What may have taken years in one company may not take as long, since a merger effectively expands the company. The basic problem is that companies often can’t announce these changes early in the merger-planning effort. These changes go far beyond a new name and senior leadership; they challenge the core of an organization’s identity, purpose, and day-to-day work. Delivering these messages early is critical, since employees will absorb the key points only after several attempts, with varying approaches. An acquisition is when one company buys or takes over another and a merger is when two companies agree to combine. By anticipating their concerns in advance, you’ll be better prepared to address them. Communicate how the merger will or will not affect your employees’ career path – be available and listen to their personal concerns. Companies combine to cut costs, get access to really good people or products, or to reduce competition by 'eating' a competitor (this can be illegal). To work effectively after the deal closes, employees must fully understand these changes. § 2102(b)(1). our use of cookies, and Linkages between the core metrics and the key change themes help ensure that the effort fully embodies the deal’s business objectives. Clarifying operational changes and training employees to master them are generally core parts of the integration team’s planning work, and we will cover this in more depth in an upcoming article. hereLearn more about cookies, Opens in new Share “Speculation on this topic is and continues to be inaccurate,” say Gojek’s co-CEOs. Before sealing the deal, make sure to analyze and decide on the best structure for benefit plans in your new, combined company. No one wants to say goodbye to their gems, especially when the likelihood of a company’s future success isindeterminate. Even small tactical changes, like new expense policies or cafeteria options, can rattle employees. Please email us at: McKinsey Insights - Get our latest thinking on your iPhone, iPad, or Android device. Thus, the new company can gain a monopoly and increase the prices of its products or services. A company merger may mean doubling or tripling positions, which may mean either a change in some employee job titles or some employees. What’s more, ten years of data from an annual McKinsey survey of M&A executives shows that organizational issues like cultural differences and changed operating models account, on average, for almost 50 percent of the failure of mergers to meet expectations. As early as possible in the integration-planning process, it is critical for the new top team to agree on the operating model, cultural priorities, and integration architecture. The integration leader is also well placed to update top executives or the steering committee as these leaders and leadership bodies direct and role model the changes. The communicatio… Something went wrong. While these moves may seem straightforward, they are usually hard to execute. A holistic, effective integration program should proactively address the full scope of changes your employees will experience in an integration (see sidebar, “Five practical actions”). In any case, executives are often so stretched for time that they prioritize only what they see as the key operational deliverables and address cultural issues too late. An effective, proactive communication plan is therefore critical to ensure that employees understand the process and the timeline until the company can reveal the decisions it has made. In some mergers, for example, the leadership team develops an effective plan to capture synergies—only to realize that it hadn’t taken into account cultural differences that lead to ineffective execution. The existing cultures of the major challenges during any merger or acquisition merging companies can be under... 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