Andrew G., a 35-year-old M&A consultant, had been engaged by a mid-size global company to perform their latest acquisition integration. He was quite excited about this new assignment. As an experienced consultant, Andrew was confident in his ability to deliver a successful project. However, this M&A transaction would be quite a challenge for him.
One of his first activities was to facilitate an integration planning workshop with all functional leaders. This was the occasion Andrew knew that he had to score his goals and win the confidence of all the functional and operational heads. With his previous experiences, Andrew felt quite confident to exactly do that.
And the planning workshop apparently yielded exactly that. Andrew was able to communicate with all the functional leads. Apart from a couple of them, he could get the others to participate in the workshop and get firm commitments from them. At least that is what he thought.
One of the leaders who Andrew thought was a big supporter, was the head of HR, Katja M. She was quite vocal during the workshop on the needs and requirements of achieving various integration milestones.
But once people got back to their daily routine after the workshop, things started to fall apart. People started missing deadlines. Excuses became predictable and repeatable. However, one person that really surprised Andrew was Katja. Andrew had truly believed that Katja was a big supporter of the project and was on his side.
As time passed by, Katja started dodging meetings. She would find random operational excuses to avoid her committed timelines. To aggravate the situation further, she started creating distance from the project by appointing a junior person to become the go-between person for HR.
Obviously, people familiar with the subject know that the HR function is one of the pivotal functions in M&A integration, especially the ones that have a strong people-centric approach. This integration was no different. Andrew’s frustration grew as he struggled to get Katja on board and make progress on the integration project.
Feeling like he had hit a wall, Andrew knew he needed help. He approached Anirvan, a renowned M&A advisor, for advice. Anirvan listened to Andrew’s concerns and gave him a range of advice to help get the integration back on track.
“Why don’t you start with assessing the situation and identify the root cause of Katja’s lack of support and then come back to me in a couple of days?” said Anirvan on the first day of interaction.
Taking Anirvan’s advice, Andrew spent the next couple of days speaking with a few functional leads about this. He was careful not to make it about Katja but more from the perspective of HR as a function.
Andrew found that the HR team was running short-staffed and that Katja was feeling overwhelmed with her regular workload and the added responsibility of the integration. He also figured out that while she appeared quite confident, she actually did not have an experience with a sizable integration. So, she may have been feeling unsure of her role in the process.
On hearing this response, Anirvan asked Andrew, “How well do you know Katja as a person? I mean, what are her ambitions regarding the project? What are the pains and gains of this project for her, for her team, and for the company?”
“Hmm, I know what you mean,” replied Andrew. “In the rush to get things done, I only focused on the integration activities but never bothered to find out about individual aspirations and orientation behind the project.”
“This is one of the critical elements that many external consultants miss out on when leading an integration,” replied Anirvan.
“If she is unsure about her role in the process, I would recommend that you walk her through your standard R.A.C.I. matrix that you have created once again. This will refresh her thinking as she will now be able to relate to the items a lot more than prior to the start of the project. In addition, I suggest that you implement a R.A.P.I.D. (Recommend, Agree, Perform, Input, Decide) framework for HR and people decisions. While RACI focuses on deliverables and the person responsible throughout each stage of the process, RAPID is more suited for the decision-making matrix and specific actions that an organization takes especially in integrations.” Anirvan continued.
“HR plays a critical role not just for its own functional integration but also, for other functions when it comes to its employees and it supports business leaders by mentoring them through the process. You may want to look at the communication channels that HR has put with other functions. They may not be as effective as we want them to be. So, help them by creating a proper operating structure, and give them templates and tools by which they can do their work for integrations more effectively. I know this will mean extra work for you Andrew but something that will help you to bridge the gap with Katja.”
“That is not a problem” replied Andrew with a smile. “This is really good advice. Thank you again.”
“Andrew, you are very energetic and want to get the integration done as early as possible. But integrations are not just a set of actions and activities. It is an exercise where you build relationships with people and win their hearts. As you know, a large number of integrations fail as they solely depend on just following a template and getting the work done. Integration should be and must be also about people, their culture, and leadership apart from the functional and structural consolidations. I would ask you to be patient and persistent. M&A integrations are complex projects, and it can take time to get everyone on board and working together.” Anirvan said before concluding the meeting.
While driving back, reflecting on Anirvan’s call out, Andrew realized that he needed to be patient and persistent in his efforts to get everyone working together and moving toward successful integration.
Andrew went back and implemented the recommendations over the next several weeks. Andrew was able to reassess the situation, build better relationships with his team, empower them with clear responsibilities, establish clear communication channels, and be patient and persistent in his efforts. He exercised patience and set up specific calls with Katja. His offer to restructure HR communication channels with other functions was accepted by Katja gladly.
As a result, the integration project was successfully completed, and Andrew received accolades from the company’s leadership for his excellent work. And one of the people cheering from the front row was none other than Katja.
