M & A Activity and UnAuthorized Opinions

In order to kick-off our first posting on M & A activity I would like to explain a bit how an effective HR strategy can enable success or aid to failure.

The first thing companies should consider when merging, and the last thing they usually do, are its people. People (some might say Labor) are what make companies work. If a merger is going to be successful it doesn't matter how many "natural synergies" or cost-savings or other advantages there might be if you don't make the two groups into one cohesive whole.

AT&T is one of the companies that has done this extraordinarily successfully. They were one of the Baby Bells and now a dozen or so merger's later they are quickly gaining on Ma' Bell. They were able to do this because People came first. When Bell South was acquiring companies it brought people together, explained that those that were once our competitors were now our brethren and set the stage for continued exchange between them. They did not operate as two separate groups, they combined or maintained leadership, re-imposed a combined structure and communicated everything. If you have to choose, choose to over communicate. Tell everyone everything you're planning to do, planning to continue acquiring, tell them, planning to divest a business, tell them. The more you communicate the more people feel involved in your decisions.

HR should be the voice of that communication. They should set the precedent of over communication, explanation, reiteration, questioning and asking. I assure you, there is no group better qualified in your company to ask and explain than your HR department. Use them!