Jennifer connects with Expert Mitchell Levy, a TEDx speaker and international bestselling author of over 60 books.
Here are a few highlights from this episode:
Having been through three multi-billion dollar acquisition experiences, I saw how the integration of cultures affects the org on how they perceive their mission and vision.
Orgs and companies that are doing #MergersAndAcquisitions have to deal with people challenges and the integration of cultures. How do you overcome those challenges?
Mid-market or Fortune 500 companies should think smart when it comes to #MergersAndAcquisitions in order to survive or prevent possible problems.
The people aspect when doing #MergersAndAcquisitions must be considered, as well as how to communicate the vision, mission and values in a way that galvanizes your workforce to really get behind them.
As featured on Lisa Nirell’s blog – the original can be found here.
As a new year approaches, I frequently see a litany of growth projections for the coming year. I’m always amused when these forecasts and undermining practices contradict one another.
Take, for instance, the world of mergers and acquisitions (M&A), an area where I specialize. Even in the face of geopolitical and global recession fears, companies are expected to continue pursuing M&A as a growth strategy. Why? Because regardless of whether you are a global, Fortune 500 company or a small to medium size business, it is becoming increasingly difficult to go it alone and succeed in business.
I’m seeing a trend that M&A can undermine—and marketers often ignore at their peril. Glassdoor’s recent job and hiring trends for 2020 study predicts that 2020 will “usher in a culture-first decade for employers…. as growing numbers of companies come to rely on the individual knowledge and creativity of their people as their core business asset.”
During my research for my M&A handbook, NOW WHAT? A Survivor’s Guide for Thriving through Mergers & Acquisitions, “poor cultural fit” was the most consistent challenge I heard from executives as the reason for M&A failure. In my experience, both sides usually believe their culture is best and stay stuck in their old way of doing things. And today’s ongoing frenzy of M&A deals only make this impasse worse!
As marketing leaders, you know that a strong company culture cultivates a workforce of powerful brand advocates who enhance marketing efforts. What can marketing do to navigate the culture war that ensues in the face of increased M&A activity?
Here are three rules of thumb to consider as you evaluate an M&A deal on the horizon, and when you are in the throes of a post-deal journey:
Come to the union with respect for the other side. There is a reason an M&A deal happens – both companies need each other to survive. To find success post-deal, both sides need to come together looking for what the other side is good at– not fixated on what you are good at. You can’t create a stronger marketing plan if you are stuck in how you have always done things.
To appreciate another culture, learn their language. In my first acquisition experience, my company, NAVTEQ, was a B2B player while Nokia, who acquired us, was B2C. We had different marketing approaches and consequently, a different culture and language. At the beginning, we spent too much time trying to convince each other our respective language was best. Had we each spent time learning each other’s language rather than trying to force people to “speak our language,” we might have achieved success sooner.
Check your ego at the door and work back from what serves your customer best. Staying stuck in your old way of doing things blinds you to the opportunity to create something new and stronger together, something that best serves your customer. When we worked back from what best served our B2B customer, we recognized that it was a combination of Nokia’s consumer research coupled with our expertise on what delivered an exceptional B2B navigation experience.
Checking your ego will likely be the hardest for you to do. As marketers, we tend to be exceptionally proud of what we have achieved. And we should be. We’ve typically put our blood, sweat and tears into making our marketing efforts a success. But you need to always remember, your success in the marketplace post-M&A deal hinges on how well you can work together. Check your ego, bring the best of your strengths to the union, and find common ground.
About the Author:
Jennifer J. Fondrevay is the Founder of Day1 Ready, a consultancy that advises forward- thinking business leaders, owners and C-Suite executives on how to prepare for the human capital challenges of M&A and business transformation. She shares her expertise as a contributor to Forbes, Harvard Business Review, Thrive Global, American Marketing Association, and Middle Market Growth. She is also a frequent podcast guest and keynote speaker.
Whether you’re a small business or a big company, each element of the process of M&A can present numerous obstacles that can undermine the success of the deal. Jennifer Fondrevay joins Mike Michalowicz on the Entrepreneurship Elevated Podcast to explain what you need to do for the best possible transition.
WORKFORCE 2030 WITH SILKROAD TECHNOLOGY MERGERS & ACQUISITIONS AND ITS EFFECT ON THE WORKFORCE
Jennifer Fondrevay joins Alexandra Levit to explore Mergers & Acquisitions and its effect on the Workforce. Jennifer works with forward-thinking business leaders, owners and executives to pre-plan their people strategy through the phases of M&A so their employees can contribute from Day1.
MANAGE YOUR MESSAGE WITH JIM KARRH SURVIVING & THRIVING THROUGH M&A
The wrong internal message–especially “marketing jargon”–can derail the success of an acquisition. Messaging has a particularly important role in the effectiveness (or lack thereof) in a merger. Leaders need to know how to communicate the deal internally as well as externally, so that the integration is set up for success.
Jennifer speaks with Jim Karrh about the three forms of “us-versus-them” thinking:
Our company vs. their company
Senior leadership vs. front-line managers
Those who stay vs. those who go (“Everyone thinks the other side got the better deal”)
While the typical pattern is to focus on the financials of a deal and work on the people aspects later, Jennifer says it’s far more effective to consider the human capital involved from the very beginning. She says, “Day 1 of any deal is the moment you first start thinking about M&A as a growth strategy.” Business owners, from that point, approach their decisions differently.
Messaging has a particularly important role in the effectiveness (or lack thereof) in a merger. Leaders need to know how to communicate the deal internally as well as externally, so that the integration is set up for success.
Three of the most important pieces of advice are:
Recognize that your internal audiences will likely have a negative view from the outset
Avoid clichés (e.g. “nothing is changing,” “this is a merger of equals,” “we expect minimum reductions in staff”) which only serve to elevate skepticism even more
Jennifer joined Dave Bookbinder on his podcast, Behind The Numbers, where they discussed why more than 75% of M&A transactions don’t actually produce their planned synergies and how to make M&A more successful.
Christina Martini and Jennifer Fondrevay discuss how Jennifer transitioned from advertising to marketing and her experience with being part of leadership teams through a series of mergers and acquisitions and the human capital issues that arise during significant inflection points in an organization.
In this episode, Christina Martini and Jennifer Fondrevay discuss:
The importance of human capital challenges and considerations in today’s business world.
The characters you may see during a post-deal landscape.
Talking about the people from the due diligence phase, not late in the deal.
Seeing the opportunity in change.
Key Takeaways:
Be open minded, have contingency plans, and be nimble in your interactions during inflection points.
M&A transactions are an emotional process for everyone.
Bring on a human capital advisor – someone who can advise as to the people challenges you are going to face during an M&A transaction.
Know what you’re good at, how it contributes to the new vision, and make sure people know that.
“When you are operating from a position of fear, people act differently.” — Jennifer Fondrevay
FEAR NOT: HOW TO MANAGE BIG CHANGES WITH TOM STEWART
Jennifer Fondrevay talks with Tom Stewart, executive director of the National Center for the Middle Market at the Ohio State University Fisher College of Business, about company culture, and in particular, about what happens to the feeling of a place after a merger or acquisition. That’s often a bad news story. But it doesn’t have to be.
The partial shutdown of the U.S. government is a cautionary tale of negotiations gone wrong. From a business standpoint, there are career-shaping lessons to be learned. As a leader, you need to bring your ideas forward, even when facing a wall of opposition, and create a win-win for all involved. There are four important takeaways regarding the actions (and reactions) of the recent failed negotiations at the White House.
Chuck Schumer and Nancy Pelosi had barely sat down, when President Donald Trump stood up and left. What went wrong in the Oval office? Setting politics to the side (and I’ll leave it to you to take sides): what needs to change to stop the stalemate? Against the backdrop of the partial U.S. government shutdown, here are four takeaways on what’s missing—and how to communicate a win-win outcome:
1. Bring It: “Neither side came into the negotiation with respect for the other,” according to Jennifer Fondrevay, a Chicago-based M&A consultant. “In countless negotiations I’ve observed, in mergers and acquisitions, when respect isn’t there for the other side, rarely are the negotiations or the final deal successful.” In her work with the Harvard Business Review, Fondrevay touches on how “us vs. them” thinking leads to a stalemate. “Each side has to appreciate what the other side brings to the negotiation. People give lip service to the idea of compromise, but it’s tough to deliver when each side feels that compromise gives away their power. Coming to the table with respect for the other side’s position enables you to find that common ground.” The polarized nature of our political spectrum has made mutual consideration a rare commodity. The conversation shuts down when respect isn’t seated at the table.
2. Run The Options: According to Forbes contributor, Codie Sanchez, it’s best to start a negotiation by stating what you want. “You will hands-down not get what you don’t ask for,” she writes, and that double negative creates a positive picture of where negotiations often begin. So when the president says, “Will you give me what I want to build the wall?” it appears to be standard operating procedure. But notice the language from the Oval Office—and a powerful intention—that’s glaringly absent from the short dialogue between our political leaders. There’s a difference between asking if we can come to an understanding, and asking if you will agree to give me my way. The missing intention? The importance of agreement. Pelosi and Schumer met the President’s statement with a simple “no”—the absence of agreement or options. Then the President left his own meeting, declaring it a waste of time. No options? No compromise? No conversation. Staying open to options is the first step in finding a solution.
3. Raise The Stakes: In most business deals, those involved will directly receive a result from their efforts. However, our governmental leaders bear no direct personal impact from the shutdown. (Unfortunately that’s not the case for over 800,000 government employees who are working without pay). It costs the President nothing to walk out of the room. No immediate votes, no measurable political capital – indeed, many in his base may admire his strong backbone and commitment to principle. And digging in seems to have equal appeal for the Democrats, for a number of reasons. What would have changed if the Senators had replied, “We’re here to find an agreement that puts the government back to work—and we’re willing to talk about the Wall in that context”? Some would argue that those words would fall on deaf ears. Perhaps. Some might say that a version of that offer was made, but to no avail. Beyond this speculation lies a principle of effective negotiations: When confronted with an opposing viewpoint, it’s crucial to reframe the conversation around what matters most. When you have a stake in the outcome, you care about agreement. Discovering new solutions is the reason for the conversation. Fondrevay points to the importance of the human factor in every business decision: “True leaders consider the impact, and the after effects, of their agreements. Beyond the transaction, ‘making things work’ means working through people to reach your goals. “
4. Back Off The Blamestorming: There are always opportunities for new solutions. Why? Because we have an unlimited capacity for innovation. Yet, in our national dialogue, blamestorming has replaced brainstorming. New solutions seem out of reach, at least for now. But alternatives always exist. From penicillin to Pinterest, there are millions of examples of how teams have come together to overcome insurmountable odds. Remember what South African leader Nelson Mandela said, “It seems impossible until it’s done.” Looking past what’s past is key to creating the future.
The conversation changes when the parties involved recognize the value of mutual agreement. When the agreement matters more than the individual agenda, blamestorming stops and new ideas can begin. It’s neither “my way” or the “highway”—there’s a new route, if an agreement is going to be reached. Agreement is the discovery of an alternative that’s always been there, we just haven’t seen it yet.
In life, where we put our attention is where we will find our results. Focusing on partisan resistance is not moving towards the goal of agreement—and getting the government working again. There seems to be a fundamental misunderstanding in these recent political negotiations: despite recent events, we need to work together. The coaching for business leaders is clear: Relationships, and respect, always matter. Otherwise, we all walk out on the opportunity to discover a new solution.
