how do you solve "not invented here" mentalities?

This topic contains 4 replies, has 5 voices, and was last updated by  Mirinda Lowe 1 month, 3 weeks ago.

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  • #119347

    Michael Hubsmith
    Participant

    The cultural clash I fear the most in an M&A integration is the resistance of key personnel and the rank and file to the “not invented here syndrome”. What is the best way to overcome this issue early in the integration process?

    #119376

    The key here is consistent and persistent communication. 2-way communication is critical. This includes town halls, small groups, and even 1:1. Listen to their concerns. Acknowledge their concerns. Where their recommendations and suggestions align with the transaction thesis and future state strategic plan, take and use their suggestions. And where they don’t, communicate your appreciation for their concerns but that the company was unable to implement at this time. Its about showing employees that you value their input and suggestions. That they are taking the time to communicate their concerns is a sign that they are engaged and want their concerns overcome. If you can show they are a valued member of the organization now and in the future, assuring them that they will be herd but that not every suggestion/recommendation will be implemented or implemented immediately, that should go a long way to resolving any issues and changing the hearts and minds of the employee population.

    M&A is all about change and people fear change. No matter how well adjusted they seem, there is always a breaking point. How you address change, the change management methodologies you employ during the transaction and post-integration process, will make or break the success of the transaction in the 1 – 3 year window post transaction close. Having a talented Human Capital Advisor as part of your consulting team will be critical to managing the success of the people component – something not enough boutique M&A firms partner with nor invest in on their own teams. A lot of emphasis is placed on the financials and the numbers while too little focus is on the very people they need to make it all work. The financial assumptions require the right talent in place to make it happen. That is where Human Capital Advisors are critical to deal success!

    #119429

    VishnuVardhan A
    Participant

    if individuality is a source of strength of a company. acceptance is better than confrontation, working around it helps not only in efficient outcome also keeps the morale healthy.

    #120252

    Manuela van Ulzen
    Participant

    From my point of view there are a few think you should look at, to avoid such a situation
    – Plan your integration well and look for cultural challenges already in the due diligence phase.
    – Have “mixed project teams
    – Work together from day – look for the good things of both companies and build the future together. Like this people will feel that they are heard and
    not run down. They can also be involved in preparing communication content
    – Open, honest and regular communication about what will happen, status and success to avoid rumors and reduce stress levels of the employees

    #120355

    Mirinda Lowe
    Participant

    One strategy I’ve used that’s proved successful is facilitated planning sessions with members from both of the 2 parties of the integration. Allow the group to establish the goals (where possible, or work with key goals as a starting point), and then to work together to lay out a 1 year roadmap to achieve those goals. This allows you to create a realistic plan with the best input possible, that’s bought into by the team members you need to see it come to fruition. A team that participates in the plan will drive harder to achieve that plan, and also be ambassadors throughout the organization for others to support the plans.

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