When reading through the Northrup Grumman case study I thought of an interesting question/dilemma for the acquiring company. If post merger culture as important as executive management suggests than, like NG, you want to take the best of both companies. However more commonly, the managers and associates at the acquiring company have a distinct advantage over the managers and associates at the target company. Or rather there is a perceived advantage. What do people think about making all associates and managers, acquiring company and target company alike, re-apply and re-interview for new roles to level the playing field?
Very interesting concept. First from a practical standpoint, I think it is time consuming to execute and may lead to some breakdown in the day-to-day operations. Secondly, there’s the issue of who governs this re-interviewing process. Ultimately, it still needs a neutral party if the objective is really to find the best talent for the role, otherwise those who are conducting the process would still mostly end up with the parties that they are already familiar and comfortable with (and probably requires less training and management since there’s already enough to do when integrating a deal). True some weaker links within the acquirer may be removed through the process, but I think that would likely happen anyway if there were a suitable replacement. Unfortunately, I think the advantage will always be skewed to the acquirer. As in most things, the conqueror tends to have more sway than the conquered.
It’s a good discussion topic and I agree with Josh Llang Wee that it will be time consuming yet but I don’t think it will impact the day to day operations. Additionally it depends on why the acquisition occurred, in the Polycom case study they were acquiring for expertise and it made sense to retain the resources that had expertise Polycom didn’t possess.
Remember, one of the goals of an M&A deal in to tap into synergies, which means, among others, eliminating redundancies and optimizing the use of resources. Also, the acquiring company already has a established culture and expertise, and often wants to implement its own culture in the target company, so they are also not equal from that perspective.
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