Leading Through Mergers and Acquisitions
Mergers and acquisitions (M&A) aggravate instability.
Leaders shine when they help people navigate uncertainty and instability. For example…
- New employees during onboarding.
- Moving from “Bud to Boss.”
- Terminations.
- Shifts in leadership and new reporting structures.
- Software integrations.
M&A reality:
Success takes many forms.
In recent years I’ve worked with corporate leaders and mid-level managers who navigated the turbulence of M&A. Some stayed. Others retired. Some have been promoted. Others found new employment.
Success is uncertain.
RIta Numerof, PhD, president of healthcare consulting firm Numerof and Associates said, “The reality is that around 40 percent of M&A in general, across industries, fail to deliver on the financial performance that the parents coming together in the first place wanted to achieve.” (Financial News)
Shining during M&A:
You don’t have to be a genius to thrive during an acquisition. Acts of compassion and selfless courage matter more during uncertainty and instability.
The best time to shine is when it’s dark.
Leadership goals:
#1. Row-with, not sideways. Help the parent company succeed or resign.
Tip: If you’re willing to relocate, tell your new parent.
#2. Help your team successfully navigate transition.
Inspirational leaders serve others when their own future is uncertain.
- You are there to serve them. They aren’t there to serve you.
- Listen, but don’t fix.
- Help people see opportunities. What are their strengths and passions?
#3. Practice transparency.
- State the obvious. “Change is coming. I’m not sure what it looks like.”
- Be supportive. “We’ll work this out together.”
- Don’t reveal secrets.
- When in doubt, discuss transparency with your boss.
#4. Resolve resentment.
Mr. Sulkman resents change. (Not his real name.) He’ll end up terminated. He makes everyone miserable. His teams are bound to flounder.
- How are teams better WITH you?
- How are you energizing others?
Hate limits opportunity. Resentment shrinks life.
Tip: Practice self-reflection during M&A.*
What strategies best serve teams and leaders during an acquisition?
Bonus material:
*I’ve taken several leaders through emotional intelligence exercises during M&A. (Read Emotional Intelligence 2.0.)
Read the comments on yesterday’s post. (Leadership Freak)
What’s Behind the All-Time High in M&A? (Harvard.edu)
Surviving M&A (HBR)
How to Survive an M&A (Small Business)
Brilliant
Thanks Gerry.
Having experienced “the Merger Syndrome”, it helps if we realize most often that we have no say in what is going on with corporate. The best think we can do is accept the transition and go about business as usual until we are directed to change course.
Depending on Managerial changes, transfers, hiring’s, firing’s, etc. do what you have always done to keep the business moving in the direction you know until someone changes the plan.
This statement stands out whether during a M&A or just everyday; “The best time to shine is when it’s dark.” But what does it really take to do this and the other examples mentioned above; “CONFIDENCE”
Thank you, Dan! Great follow up on yesterday’s post and great bonus material! I found Wisdom @ Work was a powerful read for me as I redefined my role with my team before moving to new adventures.
When you are in doubt, find that bright light and let them relight your fire.
Currently we are going through such phase and our leader Qaiser Abbas is doing exactly the same and has made the environment very conducive for any sort of discussion.
I think that such conducive environment at one hand helps people to share and discuss everything and at the same time brings responsibility to do their best.