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An example might be an ice cream cone manufacturer merging with an ice cream maker so that both products can be acquired from a single entity, thereby presumably making it easier for the customer. A market extension merger is with two companies that sell the same product in different markets. This is an interesting type of merger because companies can be regional. Companies can have different segments of the marketplace in which they have gained a reputation. By acquiring another company that has a foothold in another market, you can automatically increase the markets that you address. A product extension merger is when two companies selling different products in the same market merge. An example of this is the EMC/Data General example where EMC sold at the high end and Data General sold at the low to mid
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In the initial planning phase, only 15% of the companies are engaging HR. HR is engaged a little bit more in the investigation phase. It’s easy to understand why HR is not more involved in the negotiation phase. But look at the numbers for integration. Less than 30% are engaging HR in the actual integration, and it is in the integration phase where all the issues that we’re discussing here occur.
As HR leads the companies through the process, there are proven best practices that they can follow to help ensure success…
HRM Best Practices for Mergers & Acqusitions
Successful M&A deals are mostly attributed to leadership, well-planned communication and early management of "people issues."
After careful review of the literature, and taking into account my own personal research and experience, I have put together a set of HRM Best Practices for HR people when they are facing the daunting task of managing the complex issues involved in mergers and acquisitions. These Best Practices are high-level, but they should give you a solid overall view of the kinds of things you need to pay attention to as you go through the merger and acquisition process:
• • • • • • • •
Leadership Transition Team Structure Policies & Processes Workforce Rationalization Job Grading/Banding Compensation Retention
In the initial planning phase, only 15% of the companies are engaging HR. HR is engaged a little bit more in the investigation phase. It’s easy to understand why HR is not more involved in the negotiation phase. But look at the numbers for integration. Less than 30% are engaging HR in the actual integration, and it is in the integration phase where all the issues that we’re discussing here occur.
As HR leads the companies through the process, there are proven best practices that they can follow to help ensure success…
HRM Best Practices for Mergers & Acqusitions
Successful M&A deals are mostly attributed to leadership, well-planned communication and early management of "people issues."
After careful review of the literature, and taking into account my own personal research and experience, I have put together a set of HRM Best Practices for HR people when they are facing the daunting task of managing the complex issues involved in mergers and acquisitions. These Best Practices are high-level, but they should give you a solid overall view of the kinds of things you need to pay attention to as you go through the merger and acquisition process:
• • • • • • • •
Leadership Transition Team Structure Policies & Processes Workforce Rationalization Job Grading/Banding Compensation Retention