The Hindu Business Line : Surviving a merger

Rahul Shekhawat, a consultant with an IT firm, was expecting to be promoted to the role of a client relations manager. So the news of his company being acquired came as a letdown because, in order to cut costs, the new organisation put all promotions on hold.

Mergers and acquisitions are becoming more and more common. The key principle behind a merger or acquisition is that two companies joined together are more valuable than two separate companies.

What’s in store for you?

A merger or acquisition could mean a job loss for you or you may have to move to a new city to keep your job. The job profile may change and your current skills may become redundant in the new company. Reporting to a new boss and dealing with a different work culture are also part of the package. Here are some strategies to help you keep your job, your status and sanity, and, perhaps, even take you to a higher position in the new company.

Communicate regularly with the management: Early communication is critical in any merger or acquisition situation. If you receive initial word of the change without immediate follow-up information, make sure that you ask your boss about the updates. Do not believe the rumour mill. Also be sure that you are not a part of it, otherwise people may suspect that you know more than others, but are not revealing information. This can damage morale and you will lose the trust of your colleagues.

Speak to your boss: Take the initiative; ask your boss what is most important now. An acquisition can quickly shift priorities. Don’t wait for direction. Show that you are capable of shifting gears and moving forward. Have a clear idea of what kind of work you want to do. There are many factors to consider including your knowledge, skills, personality, values, work style and preferred environment. Discuss these openly with your boss and gain his or her perspective. Don’t expect any sympathy from your new boss. You have to make a fresh start, demonstrate your skills and experience and bring your talents to his/her notice. Be candid in asking the new boss what his/her immediate plans are and how you can add value. Become a trusted advisor and share your experience with the new boss.

Speak to the human resources (HR) department: The degree of HR’s participation is directly linked to the success of mergers and acquisitions; therefore your HR team may have a lot to offer. Ask your HR manager for details about the organisations’ plan to merge people assets and how it will impact employees. You could even ask them about the functions/job profiles that are likely to go in the new structure.

Relocation or transfer: There may be a need for employees to relocate to the new company’s location. Informing your boss about your location preferences in advance will minimise the potential for gossip and spread of misinformation. You should also discuss private issues such as individual layoffs or shifts in job responsibilities before the formal change is announced. Don’t just look at career objectives, but also consider personal factors; a spouse’s job, children or health issues may stop you from relocating.

Get the big picture and be proactive: If you are in the company being acquired, gather information about the acquirer. Does it have a history of mergers? How has it handled merged staff in the past? You can find this information on the company’s Web site or on other sites on the Internet. Prepare for the worst. Polish up your resume, use the Internet, contact recruiters and network. Take a proactive stand and gear up for the times ahead.

Volunteer to lead a new project and stay current: Use your time and energy wisely. If you are part of a project that may soon dissolve as a result of the merger, volunteer for a transition team and be willing to assume new responsibilities. This shows initiative, puts you in a visible position and builds new skills. It also gives you the opportunity to showcase your leadership skills. Read industry publications and reports. Be aware of changing trends and position yourself accordingly. Use this knowledge to your advantage by taking a course in an up-and-coming area or a specialty that will benefit your organisation and give you an edge over the competition.

Be congenial and excel in your current position: People who are disliked by their colleagues are often the first to be laid-off. Invest in relationships and make sure that you don’t pick up fights with your boss or colleagues during this phase. Mergers test work relationships, especially those with colleagues whose jobs may be phased out. Your dealings with others will take on a new dimension as job descriptions change and layoffs are announced. Your position may survive, but a colleague’s might not; listen and be empathetic to his or her plight. Offer encouragement and suggestions. Exceptional performance speaks for itself. You won’t get ahead with mediocre performance, regardless of how many other steps you implement.

With companies keen on expanding, the chances are good that the number of mergers and acquisitions will increase. That makes it important to prepare yourself for such a possibility and to make sure that you are ready to ride the waves.

(The writer is a Managing Partner at WCH Training Solutions, a New Delhi-based training and consulting firm.)

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