Effective Leadership Transition in M&A
During a merger or acquisition, management on both sides often expect leadership transitions to happen without major changes in the acquired business. Yet the first signals that come from the new leadership team could send tremors of uncertainty and confusion through the people of a newly acquired organization. When clarity and trust are most needed, it’s possible that leadership may appear more focused on itself than on taking care of its anxious people.
Although many know that poor people management and communication drain financial value from many changeovers, few take steps to avoid the confusion and distortion that start from day one. Acquired employees can’t help noticing the disconnection between leadership’s actions and words, with potentially damaging effect of costly turnover of valued employees and serious morale and productivity problems. To avoid this, it is important to be aware of the implications of ownership change and consider the acquired company’s needs.
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