2. Two-third of the big mergers and
acquisitions fail
Differences in the top management
Absence of strategic planning
( For E.g. The Jet-Sahara Fallout )
HR issues(Glaxo-Wellcome-Burroughs )
Cultural disconnect
3.
4. Retention of Key employees
Compliance with applicable laws
Alignment of compensation & benefit plans
Cultural fit
Employee communication
5. Pre- M & A phase
assessment of differences
role clarity
management styles
Post-M&A phase
designation for employees
compensation & PMS
relation between management & trade unions
7. Acquisition strategy of GE Capital
Successful model “Pathfinder” for acquiring firms
1. Pre-acquisition -> integration manager(cultural
assessments, communication strategies )
2. Foundation building(team of executives from GE
- acquiring company formed)
100 day communication strategy evolved
3. Integration phase(assessing the work flow,
assignment of roles)
4. Assimilation (long term adjustment, internal
discussions between the teams, reaping the
benefits)
8. Believes in open, honest & consistent
communication strategy ,no layoffs and job
security guaranteed, No forced acquisitions
1. Acquisition team evaluates the working style
of the management, the caliber of the
employees, technology
2. Top level integration visits target company
gives clear information & future roles of the
employees
3. Employees of acquired firm given 30 days
orientation training
9. Train managers on the nature of change
Technical retraining
Family assistance programs
Stress reduction program
Explaining new roles
Helping people who lost jobs(Outplacement)
Post merger team building
10. HR role both tactical & strategic in M&A
Open mindset what works well
Maintain synergy with merged or acquired
firms
Remove “us vs them”
Managing grapevine by effective
communication strategy
Ensuring confidentiality & Knowledge
Proper counseling and career assistance