When it comes to customer experience the bigger may not be a better idea, there could be merger between two big airline companies, the profitability could be high for brief period, but one thing constantly which companies need to address in a customer friendly environment is the people, numerous issues could cost more than even buying the gas to fly the airplanes!
An accountable leader and a dynamic working style is a key to the success of the Mergers, as statistics show more than 80 % of the M & A do not give the positive result which was expected. The major reasons could be the over pushing of the debts from one company to the other, the people’s mindset to work in a similar fashion and not adapt to the culture of the newly merged corporation or various other reasons.
Make or Break an M & A
- Communication is the vital aspect when it comes to addressing organizational issues, the vision should be clear and there should be an open and transparent communicative way for all to understand what they as a company have become now. Many times the difference is not clearly understood by the people in the organization and rumor mills start spreading which could damage the image of the newly merged company. Open dialogues, people engagement, the impact and effects of such M & A should be clearly addressed in a manner which they understand, and the people should be one with the thinking of the company’s goal and vision to avoid unhappy and confused work culture and employees
- Change is inevitable, having a detailed management change plan is a better way to understand the newer responsibilities and the reporting hierarchy in organizations and new behaviors and way of working can be synced in, taking baby steps and not jumping up the companies hierarchy and resist changes which are futile and will lead to more confusion
- Have a detailed process when there are conflicts of how to get the work done or there are different approaches adopted by employees, have a standard workflow for all the new lines of businesses added in to have a streamlined way of getting things done in an easy and simple way without deviating from the standards
- Continuous improvements, constant evaluation is a key to measure the extent to which the M & A is successful, high performance is achieved by continuous monitoring, evaluating at every checkpoint and correct where ever there is a lapse in terms of quality and metrics.
- Leaders are effective only if they guide their employees well, give the employees the recognition, motivate them for a higher performance and reward them on a continuous basis to gain their confidence and loy1alty for the company, leaders should not just manage the show but have a good interaction at grass root level to understand employees issues and resolve them.