Mergers are dangerous beasts. Corporations that once thought they owned the space they operate in, decide that they have to merge with a past competitor in order to survive globally.
But it’s a reality in today’s world and we likely will see this increase as the greatest corporations in the world decide they must not have any competitors in their sector.
So when a friend of mine, let’s call him John, told me about a meeting that was about to take place between some senior executives and the subject is mergers, I was astounded when he mentioned that the order from the top was that they were happy to discuss anything in connection with mergers with the exception of employee wellbeing.
I have been involved in companies merging and I can confirm that the only things management focus on are, financial capital (includes lay-offs), machine capital and renumeration capital.
They never ever focus on the human capital. Well I have news for them, without human capital the organisation doesn’t exist.
I’ve seen plenty of losses during mergers, which occurred because the two production directors, the two financial directors and even the two HR directors could not agree on the best solutions.
Mergers are about the people, always.
Unless you have a plan in place for merging the people, properly, compassionately and sensibly, your business will take 5 years to recover from not having a plan.
Happy merging!