Middle Market Growth - July/ August 2016

Page 66

THE PORTFOLIO SOUND DECISIONS // Chelsea Wood, Middle Market Organizational Consultant, Insperity

MID-MARKET TRENDS

SOUND DECISIONS

TAP BUTTONS TO NAVIGATE COLUMNS

Chelsea Wood

Addressing Merger Concerns

historical success of the business. What

Turnover and productivity are big con-

are the must-haves moving forward? Then

cerns during mergers and acquisitions.

create an agreement about what the cul-

Culture is a strong driver of satisfaction,

ture of the future organization needs to be

engagement and, ultimately, retention.

in order to deliver on what you’re promis-

Maintaining institutional knowledge is often important during times of transition. A culture that recognizes the value

ing your customers. Anticipate potential barriers and address them. Once the transaction closes, convey the

of the workforce is a good hedge against

changes while maintaining open lines of

losing that knowledge.

communication with your employees and

Productivity can be impacted by a disorganized integration process. By planning for culture early in your M&A process—in

customers. Make sure there are ways to receive feedback in a timely fashion. We’ve all seen deals go south. And they

the same way you address the financial

do so for many reasons. But it’s been dem-

analysis—you can develop an integration

onstrated time after time the critical role

plan and minimize disruptions. Typically,

that culture plays in the long-term success

integration begins at close, but integration

of a merger or acquisition. The transaction

planning starts at the beginning.

prerequisite that you put into place may

Investing more resources in the early stages of a transaction will protect the

just make the difference in your next deal. Learn how to structure a human capi-

long-term investment. The goal is to have

tal framework to navigate the historically

a smooth transition that provides clear

nebulous concept of culture at insperity.

expectations to all stakeholders.

com/acg. //

Moving Forward

Chelsea Wood (M.A. I-O Psych) is a middle-

During your initial planning stages, con-

market organizational consultant at Insperity,

sider cultural compatibility in your target

an employee services firm. For over a decade,

criteria. Build a framework for under-

Wood has partnered with leadership teams

standing what cultural fit means and how

to identify and address business challenges

to evaluate it.

related to operational performance, strategy,

In the pre-close phase, identify the cultural requirements needed to continue the

business development and human capital.


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