If you have not been involved in a corporate merger or acquisition, current economic conditions and trends indicate that the chances of you experiencing one is increasing. When a company chooses to merge with or acquire another company to boost financial performance or ensure long-term growth, the role of the Human Resources professional is vital and identified as one of the strongest influences in the ultimate outcome of the process. According to Harvard Business Review, an estimated 70-90% of all mergers and acquisitions fail to achieve their anticipated strategic and financial objectives. “This rate of failure is often attributed to various HR-related factors, such as incompatible cultures, management styles, poor motivation, loss of key talent, lack of communication, diminished trust and uncertainty of long-term goals. “ (Source)
While executives access in fine detail the financial and business aspects of a potential merger or acquisition, the synergies and challenges that will exist on the people side of the business are often examined at a higher level. HR professionals are uniquely challenged in working out the details to ensure the business transaction’s success.
Taking into account the unique set of challenges that mergers and acquisitions bring, there are three key areas in which HR leaders must execute to help ensure a successful transition:
Business leaders rely heavily on HR professionals to help in challenging times. Give your HR toolbox a boost by accessing AgCareers.com’s newsletter archives.
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