Ideas on how to manage people during a merger and acquisition process

1. CANAVESI ROBERTA
729979

2. In this presentation I decided to design an integrated
technology system to help employees to overcome
the «merger/acquisition shock»

3. The context
Crucial aspects
Challenges
Main problems
Main solution
AGENDA

4. THE CONTEXT
GAMMA
---
Smaller company
Established customer
portfolio
ALPHA
---
Big company
Successful position
Aspire to become a leader

5. THE CONTEXT
The CEO and founder, Mario
Rossi, will retire.
He has no heirs.
Alpha make an offer to acquire
Gamma
Mario Rossi accepts
Negotiations – condition imposed:
Alpha cannot fire any of Gamma
employees

6. Acquisition
Aim:
Consolidation of the
competitive position
Aim:
Ability to maintain
«alive» the firm
THE CONTEXT

7. WHAT IS CRUCIAL?
54%
46%
Fail
Success
Source: Deloitte’s 2014 mergers and acquisitions (M&A) report
1. Identify and document risks
2. Set a budget
3. Understand the new business architecture
4. Focus on Human Capital
RATE OF SUCCESS OF M&A IN THE FIRST YEAR MAIN DRIVERS OF SUCCESS

8. HUMAN CAPITAL: MAIN CHALLENGES
Employees
retention
Spread of
organizational culture
Communication

9. Confusion/hostility towards
new
management/employees
Sharp decrease in the
motivation of old employees
POSSIBLE PROBLEMS
Difficulty of integration of
new employees

10. POSSIBLE SOLUTION
INVEST ON CASCADE TRAINING ENHANCE EMPLOYEES COLLABORATION
Spread of
Corporate
culture
IntegrationTrust
New ideas
Know how
transfer

11. THE TOOL
INTERNAL EXCHANGE PLATFORM

12. THE PLATFORM
FIRMPEDIA
TO FORM AND INFORM
TO SUPPORT CASCADE TRAINING
FIRM-LEARNING
TO ENHANCE THE COLLABORATION
TO HELP BUILD TRUST AND CREATE A
SHARED CORPORATE CULTURE
Privacy agreement to be signed to access the platform

13. A «wikipedia-like» platform
Used for manuals, technical
informations, etc.
Security - employees will be able to
access only to the part of the platforms
that directly concer their division
No one shall put sensible information
on the platform
FIRMPEDIA

14. Every Alpha manager has to write a page
of instructions and routines
For any question, Gamma managers can
write/call Alpha managers
Gamma senior managers and managers
access the platform and instruct Gamma
employees
FIRMPEDIA

15. After this first period, all employees will be
given an username and password to
access the platform
FIRMPEDIA
Employees can propose modifications to
managers.
Only responsible people can modify the
platform

16. FIRM-LEARNING
Supervised by HR department
To consolidate corporate culture and build
healthy relationships
Everyone can write on it
COMMUNITIES
CLOUD SERVICES
CONFERENCE CALLS TOOL

17. MOTIVATION
EXTRINSIC REWARDS INTRINSIC REWARDS
TEAM BUILDING/MIXED TEAM PROJECT

18. Thank you for your attention!