What are some good practices integration teams should use for the HR function? Example: cultural assessments, early involvement of HR in the deal negotiation (and cost/price in HR integration costs such as severance packages, relocation, talent retention bonuses), etc. What else?
From a current transaction i’m involved in which aims to establish a new join venture, I see great value of doing Cultural Assessment. Such assessment aims to take out the best of 2 entities and build a cohesive culture of the new organization, that employees of both partners feel related to it.
Last Spring I observed a Cultural Assessment by McKinsey for the two merging companies I have been working with in 2021 The final results were interesting across 10 dimensions. It highlighted some significant differences between the companies in terms of HR practices (e.g., performance management practices). I’d highly recommend a cultural survey to pick up on HR matters in the event that cultural differences might sour the deal