Change is challenging and this is amplified when it involves two businesses coming together. There are many tales of two successful businesses combining where the outcome quickly becomes less than ideal. One recent high profile example was the purchase of Hell’s Pizza by Restaurant Brands which ended in the original owners purchasing the business back at a discount; while on the surface there was a good match between the two companies from a product and market perspective, other more tangible mismatches caused the failure.
New
Zealand is ultimately made up of small and medium sized business where the
owner’s retirement is based around a sale to either a competitor or overseas
investor, so getting the merger right is key to maximising that 2 year post
performance payout. Generally the focus
is around keeping and managing the staff through the process, which is the
right place to start, but what often gets forgotten is the management and integration
of two company cultures and managing staff through this transition; destroying the
company culture which has made it successful to date can be counterproductive
to the end goal.
Consideration
needs to be given to the following, especially if a larger business merges with
a smaller counterpart:
·
Currently
how much leeway do the managers and staff have over the business decision
making?
·
What
avenues are open for feedback and input into company strategy and how formal is
this?
·
What
access is available for the team to interact directly with their leaders and
the businesses management?
·
What
gives each team member that sense of belonging and wanting to stay?
·
What
level of general ownership do the staff feel towards the business and current
owners?
·
How
are the staff rewarded and what do they value?
Care
needs to be taken when undertaking any change and ensuring the needs of the
people are met, along with preparing them for a cultural change. Every business is special in its own right and
this has to be honoured in the process and in doing so, this increases the
chance of success for all involved.
^JY
