Managing human capital in the wake of a management buyout (MBO) or merger and acquisition (M&A) activity is a delicate balancing act. Chris Tossell, Commercial Director at Access UK, will examine how having the right framework in place is central to achieving a successful outcome in a series of fortnightly blogs over the next two months.
Any M&A or MBO situation is an intensive process for everyone involved, from staff through to the boardroom. However, it should be viewed as a catalyst for positive change in the business, driving out poor culture and behaviours – in essence, an opportunity to look at things afresh.
Having a structured framework to underpin the M&A process will allow the business to employ a systematic approach to change, whilst simultaneously keeping the business flexible and agile. This makes it possible, for example, to turn around an MBO in just a few months and merge together five companies into one in around 18 months – and most importantly to get the staff on side. This is exactly what Access was able to achieve when it went through its change management programme, which culminated in the recent MBO and private equity investment in the company.
Identifying requirements
With any business change programme it is important to draw a line in the sand from day one and look at the situation with fresh eyes. Turn the spotlight on every single area of the business and review it in an open and objective manner. What is the business aiming to achieve – not only in the short term – but also what aspirations and targets is it striving towards?
It is critical that the human resources division has a full understanding of the business’ objectives in order to positively influence the process and use the M&A/MBO as a driver for change. Every decision at every level should be aligned with the business strategy so having a clear vision will focus everyone’s attention, making the job of communicating the change to staff much easier.
Providing a clear explanation of what is happening within the business cannot be underestimated. After all, people need to understand why they are being asked to do certain things; as the famous Chinese proverb says, ‘Tell me and I’ll forget; show me and I may remember; involve me and I’ll understand’. This is very much about having an open dialogue with staff and not being afraid to discuss difficult topics and tackle issues head on, avoiding speculation and rumour.
So, identify the framework, understand the objectives and ensure that everyone ‘gets it’, because once the deal has been signed, the business needs to move at lightning speed to communicate the changes throughout the organisation. This ensures that the right messages get out to staff in a controlled manner so that people understand what the changes are, and of course, whether there is likely to be any restructuring or redundancies. Incorporating the communications plan within the M&A framework will minimise any unnecessary anxiety and impact on the business, making for a much smoother and positive start on this new journey.