To employees, M&A actually stands for either “Misery & Angst or “Move and Avoid”.

Let me say now, this cynicism of the M&A process does not happen by accident, cynicism is indeed a failure of management. And it takes the right conditions to grow and prosper. And it also takes time.

The reasoning and thought process involved in the undertaking of a merger or acquisition, by those who deem themselves so much wiser than us mere mortals, is usually summed up in the phrases: “What a great strategic fit” or “What great product synergies”. Never have I seen or heard “This is a great fit of corporate cultures” or “Our employees will love to work with theirs”. I think this is where the M&A process can be doomed to fail. These issues must be taken into consideration to ensure success.
Those in charge of what is such a major change do not, as I believe, behave like holistic healers, but rather forensic pathologists.

An all too common recipe used during the process would seem to be:

Start with a handful of well entrenched silos, add excessive hierarchy, ineffective leadership, chaotic strategy, insufficient communications and a big lump of bureaucracy et voila – a guaranteed, never to succeed recipe.

Confidence is contagious. So is lack of confidence – Vince Lombardi.

Most companies that have gone through a merger can tell a bucket load of tales about the negative consequences to workforce morale. But the connection that is seldom made is the one between the breakdown in employee morale and the impact it can have on hard business indicators.

Three such examples:
Productivity & Quality – threatened by employee fear, stress, resentment and anger
Customer Satisfaction & Loyalty – Vulnerable to employee confusion and systems related mistakes
Employee Retention– at risk when more talented people opt to leave for reasons of perceived betrayal or career uncertainty.
There is a need to learn the difference between pushing and leading people. Today we should no longer just be managing people. To be successful, we must inspire people and stimulate their ingenuity and celebrate our differences.
If the CEO is just looking for committed individuals – he should look in a mental hospital.

Old dreams die but new ones are born – that’s just the way life works. We shouldn’t be surprised. However, we all need that direction provided by our dreams. This is the tricky bit – when the old dreams no longer serve their purpose and can no longer motivate us, it does become distressing. They were our buddy in life, our companion. To face their passing takes courage. Perhaps tears will fall or resentment rears its head. Moving on is never easy. It feels risky. We are once again faced with moving into the unknown.

It is, however, all about perspective. One very wise person offered this piece of advice when I truly believed my entire life, nae world, was disintegrating. Buy yourself a globe of the world. Put it by your bedside. Upon awakening every morning take a look at it. Can you even pinpoint the location of the company which has caused you so much pain? In the bigger scheme of things, it is but a microscopic dot.

P.J. Thomson
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