Change is inevitable in any business, and navigating the challenges it brings can be tricky. Whether it’s a period of rapid growth, internal transformation or guiding employees through a merger or acquisition, it’s important to have a change management approach that is open with the strategic direction.
There is no single methodology to change management that will fit everyone’s needs, but there are a set of tools, practices and considerations that can be adapted to fit most situations.
I’ve managed a number of acquisitions over the past 25 years, and the biggest hurdle is always resistance to change. The common mistake in dealing with acquisitions initially is to focus purely on the mechanics – the day-to-day function and structure of the business – and ignore the culture and agreed behavioural framework of the acquired company. Driving culture and purpose is imperative to successful change management.
With this in mind, I believe there are two key areas that help ensure a successful and long-lasting acquisition.
Culture
Companies often make the mistake of assessing culture either too late, or not at all, which can be detrimental to any acquisition. Successful change programs speed up as they make their way down from management, making it vital for leaders to account for the behaviour and culture at every level.
A problem often faced during an acquisition is the inherent mistrust between the staff of both organisations. To combat this, I look at three key stages.
Firstly, you need to make people aware of the enhancements and improvements that will result from the change. This stage is important as it gives employees the chance to discuss these changes and understand them individually. This needs to be a collaborative process, and you should not move to the next step until you have reached acceptance, the second stage. Once you have acceptance then you can start to put the rest of the plan into action.
It may seem obvious, but establishing an environment where there is an effective feedback program in place is vital. It is difficult to have a genuine conversation when you are not able to accept and receive feedback. Too often, change leaders make the mistake of believing that others understand the issues and see the new direction as clearly as they do.
The best change programs reiterate key messages through regular advice that is both inspirational and practical – making sure they’re not only heard by the people, but also understood.
Performance and purpose
No matter their role or seniority, every single employee should be able to feel as though they’re part of the journey, and that every role contributes to the business as a whole. It’s important that everyone who joins the business has a sense of purpose.
Businesses should tread carefully to ensure they don’t create an environment where staff feel like they are just another number. This is especially important in the change management process and must be delicately navigated when dealing with a new business acquisition.
It all comes down to having an agreed behavioural framework to begin with. This is one of the most common problems with change management. There needs to be a strong system in place that recognises good behaviour and addresses bad behaviour.
If you walk past good behaviour for long enough, employees can become disengaged. Similarly, if you walk past bad behaviour long enough, employees will notice that leadership are not prepared to address the tough issues as they arise. As a result, you lose respect and your staff lose purpose.
Change is both an institutional journey and an individual one. People spend a good chunk of their lives at work so employees need to know how their work will change and what is expected of them during and after the transition.
The best leaders understand that people are the most important part of change management. However, it can be all too tempting to dwell on the mechanics of plans and processes rather than deal with the human issues. Mastering the human side of change management is the first step to a successful acquisition or change program – after all, it’s the people driving the business who matter most.
Tony Roussos, Chief Operations Officer, Findex
