Successful Mergers Part II

So once you get the people part right. Another essential factor is effective leadership and having crystal clear objectives and direction. Not only the general purpose of the new organization, but 3 month, 6 month and the medium and long-term goals of the organization should be so clear that it is virtually  impossible for employees, management and customers to misunderstand them.

Effective communication is essential for companies to perform well and is even more vital for successful mergers. Both internal and external communication is the key to keeping employees on the right track, retaining customers and maintaining organizational stability. So why don’t all organizations communicate effectively?

Internal communication is not a legal obligation. External communication, sometimes being a legal requirement, is generally better handled than internal communications.

Communication can be time intensive for senior leaders. During the uncertainty, there might be clear and immediate answers to questions raised by the
employees, but it takes a substantial amount of time to communicate this, which managers may be reluctant to spend. Communication can include tough messages. There are, in general, very hard and sensitive decisions to take during the merger. Managers may be unwilling to be completely open and transparent with employees for fear of employee resistance and productivity loss. However, a lack of communication can create the same, and even worse.

It is difficult to quantify the results of communication. It, therefore, turns out to be more ‘desirable’ than mission-critical. Nevertheless effective
communication builds trust and acceptance, and keeps employees focused on the important work. It can mitigate damage caused by the ‘rumor mill’ and relieve anxiety.

Successful communication can inspire faith in and support of the company’s vision and culture. The key element of successful communication is two-way
communication. Listening as well as telling enables management to convey business, strategic or tactical decisions and receive important employee input.
What can enable effective communication in mergers?

Researching your audience.  Asking them what they want to know, and how they wish to be communicated with.

Getting senior leaders to lead the effort, and model the required behaviors.  Communicating clear and consistent messages. Training and supporting managers to leverage the power of face to face communication with their employees.

Monitoring the effectiveness of your communication, by using effective listening tactics. Besides the human factors, some management issues can occur during the integration phase, and hence establishing an integration team (even small mergers should have a focused team) that is charged with developing plans, projects and tasks to ensure the successful completion of integration is vital. This team should be given the financial and time resources to accomplish this critical step in the change process.

Last but not least; all the quick wins or achievement needs to be shared within the organization as soon as possible. Celebrating and publicizing those wins to everyone boosts morale and enhances productivity.

Mergers are difficult processes that require very good leadership and communication skills, crystal clear objectives, very good planning, show cases and most importantly the best people in the organizations to accomplish a thorough job.

 

Successful Mergers Part I of II

So, What makes a Successful Merger?  Having been through many successful and a few not so great mergers and acquisitions, I gathered some of the most important aspects to share with you.  Today it’s about people!

Statistics indicate that approximately half of all mergers are successful, but why not the rest? The process starts with detailed analysis and valuation of the acquired organization(s) and high expectations of increased productivity, share value, profit, and eliminating potentially redundant tasks.

One reason for failure can be that people working in the merged organizations who must implement the planned changes are normally disregarded during the pre-deal stage.

However, once the integration starts people begin to play crucial roles in the execution of the plan. Managers should not underestimate the people issues that might arise during this period.

Communication through the company can create either an effective or discouraging working environment. It is a difficult task to keep people motivated and engage people in the business particularly when those people are at risk of losing their jobs. It may be that individuals least well equipped to contribute in the new organization will be released whilst holding on to the best people. Apparently ‘the best’ are evaluated as having the best fit to the needs of the new organizations.

A solution to keep the best in the company is to be honest to the people and remember that we all appreciate frankness. People may not like to discover that their job no longer exists, but they would rather know it up front than to receive limited notice to leave the company. Mergers need good people to accomplish their goals. Consider specific communication for key talent.

Identify as many obstacles to success.  This will reduce the wasted time in later stages. Being frank to people and involving them in the brain storming sessions and gathering true and frank feedback from employees can increase the effectiveness of the process. Management should allow staff to express their worries, fears and anxieties about the merger, as well as their ideas, suggestions and possible roles that they may be interested in assuming. This helps people to be motivated and encourage commitment to the process.

 

Job Performance or Job Satisfaction

Which comes first for you?  Depending upon your own inclination, you may marvel or  frown at the opposite choice. But, if you want to “get it” as a manager or as an individual contributor, then think about this: Statistically it’s a 50/50 split. About half the population wants to work toward a specific goal in order to achieve job satisfaction.  The other half wants to make sure that the elements of their job offer a “good fit” so they can perform at their optimum level.

I do a lot of individual assessments for organizations and have found that the inclinations are quite inherent. However, each type can learn how to adapt to what is required at the moment.

What can you do?

Increase your awareness. Look at your own preference and then start watching those around you. Who has to work before they can play? Who is making sure that the group is in harmony before moving forward?

What does it take to achieve the goal? If you’re in a crisis situation or up against a deadline, feeling-good-first may put you out of business. You’ve got to get it done! When you are focused on long-term projects which require a lot of cooperation and solid relationships, then take the time to build them. People will need to trust each other a lot in order to get through the inevitable difficulties that will take place. That can’t happen if people are only allowed to pay attention to a checklist.

Both types want some sense of acknowledgment when goals are achieved. I have more than one client who has told me “They get to keep their jobs. What else should I have to do?” Well, human beings look for recognition of some type when they know they’ve done a really good job. It doesn’t cost a thing to acknowledge people by name and what they specifically contributed to a project.  And it might just improve performance and satisfaction for everyone involved.

After Corporate Changes; are you still a fit?

Whenever some kind of organizational change happens, both employers and employees can experience an unexpected “crisis of confidence.” Whether the change is a merger, upgraded software system, marketplace positioning, new CEO—here’s what emerges:

• Suddenly and mysteriously, people don’t feel quite as talented and capable as before.

• At the same time, the organization is wondering where its talented people went.

The real fact: no one suddenly got stupid!

Second fact: Something else will now need to change.

You or Them?

When you were hired it was a good fit because of how business was conducted. Now it doesn’t seem that way. Here are some considerations when companies and employees find themselves in a talent mismatch as a result of changes:

1. Companies: Take time to re-assess the breadth of talent that exists in your employee base. You may not have been using the range of talents that individuals possess because you (naturally) hired them against a given set of criteria.

Real-life example: In the past few years I’ve had the opportunity to assess three executives who were on the, “We’ve changed, their role isn’t needed anymore, I guess they have to go even though they’ve been really effective” list. In two of the three cases a broader assessment showed that they were gifted in areas that hadn’t been tapped into before. Those two remain with their organizations in new roles and are contributing meaningfully and productively.

2. Individuals. Maybe it isn’t such a good fit. The faster you figure out the reality of the situation the faster you can make a decision to stay or look elsewhere.

Important Tip: The longer you hang out in a mismatch the more you will question your adequacy. So, knock it off! You are talented and you’ve been performing in a talented way. The situation changed, not you. Get yourself into another winning situation before you conclude that the problem is you.

Is Performance Management Losing Focus?

Performance management is becoming a lost art, omitted from academic classes and dropped from certification programs.  Most MBA courses spend more time on finance courses than on compensation (if at all).  While admittedly many managers have had inadequate training in basic supervision, some simply choose to ignore good leadership practices.  Let’s face it.  It’s hard to manage people the right way.   It takes a lot of time and it can be uncomfortable, especially for those that shy away from conflict.

Weak and ineffectual managers don’t actually manage their employees, in the sense of performance direction, leadership, setting good examples and decision-making. Instead, they want to be liked. They want to avoid conflict and so they use pay increases and other reward systems to keep employees doing what they need to do and support of their efforts.  It’s really kind of a bribe.

So what is “managing” to these people? It’s not about making hard decisions. Too often it’s trying to get the most for their employees, deserved or otherwise, whether the organization gains in the process or not. The manager is focused on their own interests, and is using someone else’s money to fund their behavior.

Why it doesn’t work

Relying on pay or other rewards as a replacement for good management has a short effective life cycle.

• Employees see arbitrary same-same pay treatment as de-motivating to high performers.  Why bother extending yourself if you’re going to receive the same reward as the guy doing crossword puzzles?

• Employees resent favoritism and those who benefit for non-performance reasons will always become known. There goes your morale.

• No amount of money replaces the value of honest performance direction and feedback. Those with an interest in learning and growing appreciate the help.

• Ineffective managers eventually lose the respect of their employees, who know what’s going on. Remember that employees leave managers, not companies.

For managers who need a crutch to help motivate and retain their employees, to help them do their jobs, the above cautions likely won’t make a difference. Their goal is not to manage, but to get-by, to be liked by their employees and to avoid disruptions to their routine. This is not leadership, but administration.

But for those managers who wish to make a difference, who understand that managing employees is a challenging and rewarding role, abrogating responsibility through pay and rewards is not an option.  They recognize it as the opposite of management, a damaging practice that will not enhance anyone’s long term career prospects.

People want to be guided by those they respect and who have a clear sense of direction.

So you have created your company. You have the talent, you have the vision, you have the infrastructure, you know where you want to take the business in the coming years, but how do you take everything and allow it to become a self-sustaining machine that will allow your company to grow?

Developing core values can become the philosophical pillars upon which your company is built, but that won’t happen unless owners and senior leaders set the example for everyone else in the company. It’s extremely important for a company’s leaders to “live it” when it comes to the guiding principles of your business.

I’ve seen many company’s become stagnant because leadership places demands on the staff that they are not willing to do or demonstrate themselves.  Some of these business owners or senior leaders believe they have done their part by developing the business and giving people jobs, now it’s their turn.  The expectation that the employees are going to want to work long and hard just because they have a job is foolish.  It just doesn’t work this way.

People want to follow true leadership.  People want to be guided by those they respect and who have a clear sense of direction.  If your business is to flourish, your job as a leader is to work tirelessly to communicate with your employees in many different forms.

Every successful leader I speak with understands the power of communication and respect in an organization.  They understand that when employees identify with the core values and why business decisions are made, they feel part of the team and want to take the organization to the next level.

So take a look at where your company is today and where it was when you started. If your business hasn’t truly moved to the next level and instead of adding employees to support your growth, you’re simply replacing staff that has left.  You may want to take a deep look at what you may be doing wrong.  “Keep in mind,” if you’re measuring revenue, remember the high cost of employee turnover.  When you lose a good employee, you also lose their knowledge, skills and experience.  Training someone new takes you away from those things necessary to move your business to that next level. 

To Lead is to be all in

Most people like the idea of leadership but few count the cost.  To lead is to be all in, transparent and accessible, calm in the face of upset and even crisis, and always mindful that you are a steward of something bigger than yourself.  That’s not easy. To whom much is given much is required. That’s the part that easily trips us up.

In his book The Twelve Absolutes of Leadership, Gary Burniso, CEO of Korn/Ferry International, explores the essential elements of leadership through conversations with some of the world’s most seasoned and accomplished leaders.   He offers a framework based on fundamental human truths and the essential elements of leadership. The “Absolutes” are building blocks that must be present regardless of your leadership style or approach. Here are the 12 Absolutes with Burnison’s thoughts on each:

1. Lead.      Anchor yourself in Humility. Leadership is an all-in proposition. Never react; instead ask yourself: is this about me or about we? If it’s the former, forget it and rise above.
2. Purpose.      The why. Purpose must have a long shadow, extending its influence over others.
3. Strategy. Strategy starts with the results of today. Strategy, rooted in values and purpose, gives encouragement through times of ambiguity and uncertainty. Strategy without purpose and values is a short-term plan that is directed toward shallow goals.
4. People.      When you’re the leader, it’s never about you, but it starts with you. The leader can’t be the star player, scoring all the points. (Although many try to do just that.) Set high expectations for your team members, and help them to see what they can achieve.
5. Measure.      Don’t rely on what you believe to be true. Measure and monitor so you know if it’s true. Validate your data. Walk around. Talk to people. Listen.  Look into their eyes and see for yourself whether the strategy is really working.
6. Empower.      The leader’s job is not to empower people, but rather to help them to empower themselves. It’s the difference between ordering people to do something and inspiring them to see what they can do.
7. Reward.      Employees work harder for leaders who demonstrate respect for their work.  Authentic, purposeful praise is a power skill of the successful leader—everywhere.
8. Anticipate.      As a leader, you must always have your focus on the horizon. Your first task is to hone your view of the present that you perceive around you and your organization. Grounded in this reality, you are able to raise your sights toward the horizon and beyond.
9. Navigate.      Anticipation and navigation are complementary skills. It involves making decisions in real time that allow you to adjust, react, and outmaneuver the competition—always on the lookout for the unexpected.
10. Communicate.      Communication is where leadership lives and breathes. That means more listening than talking. It’s not merely telling people what you think and what you know. It is a process in which you seek first to understand what others think.
11. Listen.      Listen, learn, and then lead—in that order.
12. Learn.      Knowledge is what you know. Wisdom is acknowledging what you don’t know.    Surround yourself with a handful of people who will be your corrective  lens, making sure that you focus and learn. Equally important, your inner circle should be made up of confidants who provide grounding and perspective, seeing you as a person rather than a function.

Burnison reminds us that leadership is about people. “To lead,” he writes, “is to make an emotional connection on a very real and human level in every interaction.”

Does Your Company Draw Top Talent?

I had a meeting the other day with a prospect and we were discussing why some organizations always have people applying for jobs wanting to work for them while others have a difficult time filling similar positions. I believe it’s all about a company’s reputation. Everyone wants top talent, yet few are willing to do the work that is required to be deserving of these people. That’s great news for those who are serious about becoming the type of workplace where everyone wants to work.

It’s hard to change perception, but it’s not impossible. Here’s how:

Be open to change. I’m tired of hearing business owners and leaders say that the reason things are done a certain way is because they’ve always been done that way. This kind of thinking won’t help you become the type of workplace that attracts people who are innovative. In fact, the opposite is true. People who are stuck in their old ways will remain thereby leaving you with a workforce that will never go above and beyond the status quo.

Rid yourself of toxic employees. Nothing brings a workforce down quicker than toxic employees. All it takes is one or two lousy managers to taint the workplace. I’m not going to tell you how to identify these people, as you already know who they are. Take action. Eliminate those who are making your workplace a stinky place to work.

Energize your workplace. Companies have been running mean and lean for so long that it’s now become the norm. Employees are dragging their butts to work every day and slogging along. Candidates who are interviewing with your company will sense the negative energy the moment they step foot in your door. Start investing again in your business. Begin by restoring pay cuts and by making some visible investments that will let your employees know your company is back on the move again.

Tell your story. You may be a great company to work for, but what good will that do if no one else knows about this? Revisit your mission statement and include a section on your company’s philosophy toward your people. Start a company blog, redesign the career section of your website, ask employees to tweet, hire a PR firm. Just do something!  Everyone wants to be on a winning team. Change up your strategy, trade some players and create the type of organization where only exceptional people need apply.

Focus Your Leadership

Successful business relies upon the ability of the organization to have a strong purpose.  That fact has never really changed regardless of economic or other unforeseen circumstances.

I find that some leaders tend to want to find someone to “blame” for their challenges.  If you’re looking for some concise tips to focus your leadership, here are eight from the wisdom of the late Peter Drucker:

1. Make sure that what makes a difference gets done.

2. Check your performance against previously defined goals.

3. Say no to things that don’t contribute to the real mission.

4. Know early when to stop trying doing something that can’t be done.

5. Organize travel and leverage new technology if it’s possible.

6. Have a maximum of two organizational goals at the same time.

7. Make sure the people around you understand your priorities.

8. Build on your strengths. Find strong people to do the other necessary tasks.

To fully digest the expanded wisdom of Peter Drucker, pick up a copy of The Essential Drucker or any of his books. If you are a practicing manager you’ll find them crisp, to the point, and genuinely useful.

 

 

Real Leaders Don’t Boss

Real Leaders Don’t Boss.