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CULTURE
Put me in, Coach, and I'll make a difference in how the game
is played!
By Stuart Ferguson, PhD |
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Oct 09 | When
I became the Director of HR and OD at a $50 Million per annum
non-profit organisation, I was looking forward to a seat at the
table with my fellow executives and a role in the decision making
that would shape the future of the enterprise. In reality I became
a tactical pawn of the leaders, playing a minor defensive role
in the whole scheme of things.
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STUART
FERGUSON
IMAGE COURTESY : STUART FERGUSON |
Stuart
Ferguson, PhD is a Senior Partner at
M&A Partners, an international consulting
firm with experience in Malaysia.
Dr. Ferguson has dedicated his career to improving
the results of people and their organizations.
He is an expert in assessing and changing organisation
cultures using his proprietary QUOCA process.
A former professor of International Business
at Northwood University, Dr. Ferguson holds
a Bachelor’s degree from Northwood University,
a Master of Adult Education from Georgia State
University and a Doctorate in Business Administration
from Kennedy Western University.
Dr. Ferguson has served a broad spectrum of
for- profit and non-profit organisations as
well as start-ups through Fortune 100 corporations.
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I
made certain we were in compliance with all the laws and regulations,
that no one was discriminated against in any way, that our salary
and benefits weren’t deterrents to hiring and keeping our
people, that reviews were done on time, on and on of necessary and
important but not very visionary or strategic activities.
My day was spent running interference for the people who actually
ran the organisation. Yet long-range decisions were being made that
I could and should have been involved in. And, more importantly,
I was a valuable resource that could have improved our thinking
and decision making….if I was involved. I felt like the under-used
ball player shouting “Put me in, Coach!”
I have since moved on to M&A Partners, LLC and I head up our
organisation's culture services based on my most recent book, Culture
Clout: Mergers, Acquisitions and Organization Cultures. The focus
of my work is making certain that clients are prepared for and successfully
deal with the cultural challenges involved in business combinations.
It is relevant and important work because research shows that seven
out of eight mergers and acquisitions fail to achieve their intended
results. And cultural issues are the leading cause of failure!
HR can be a powerful resource in planning, executing and achieving
better M&A results if they can get off the bench and get involved
in the action. After all, in whose lap will the outplacement, severance
packages and re-organisation fall if the deal fails? Why just clean
up the mess when you can be the strategic star who keeps the mess
(and all of its ripple effects) from happening?
In the past, culture was a known concern of the business development
team but regarded as being a “soft issue”, that is,
unable to be quantified like other factors such as market share,
profitability and return on investment.
But QUOCA™ or Quantitative Organisation Culture Assessments
puts culture on par with other M&A data by dollarising the opportunities
and costs of cultural characteristics. Thus, Human Resources can
sit next to IT, Production and Marketing when making go/no go decisions
on deals as well when calculating the synergies and determining
the payback periods of mergers and acquisitions.
For example, let’s assume your company has invested heavily
in the training and development of your production people. Your
management team has empowered the workforce to actively look for
better, faster, cheaper ways of doing things. Your core values reflect
an organisation of people who take pride in their work, handle conflicts
in an open, cooperative way and, consequently, you enjoy little
rework, have high productivity and your cost of sales are the lowest
of your competitors. To meet production needs, your business development
officer has found a company with excess capacity that could easily
be converted to meet your expansion plans.
But, what about their people? Are they the reason the company is
operating below capacity? A QUOCA™ would compare the organisation
cultures to identify the important differences between the attitudes,
values and opinions that form the cultures of the two organisations.
Are the differences so great that the deal will never work? Or are
there some particular areas such as training, empowerment or development
of core values that can be addressed to quickly integrate the new
business into a productive and valuable part of your company?
With objective culture characteristic information, HR can advise
executives on the challenges of a deal, help factor the challenges
and costs of organisational integration into the calculations of
the offering price and contribute to more accurate calculations
for the cost and schedule of integrating the combining organisations.
HR’s unique contribution can help the company win in the competitive
marketplace by actually making M&A succeed in their strategic
plan.
And HR can expand its contribution to a winning corporate strategy
by taking the lead in M&A integration training so that executives
and managers who will be interfacing with their counterparts in
the target business will have the skills to optimise the Big Five
of teamwork - collaboration, cooperation, coordination, creativity
and conflict resolution. Experts cite these five key organisational
behaviours as being either barriers to or facilitators of M&A
success. Proactive and ongoing training and development can address
these issues before they can impede a winning deal.
As the performance measurement player in the organisation, HR can
also play an important role for setting goals and monitoring progress
for the integration of the two management teams and their key players.
It’s only natural that HR should lead the celebration of victories
and provide the resources to improve the success of people and their
organizations.
Human Resources with the right tools and information in hand can
become the key to successful strategic planning and business development.
Earn your right to be a powerful member of the management team.
You don’t have to be a line of defence in the company game
plan. Become part of the offense and score points in your company
and its competitive market. Tell your boss, “Put me in, Coach,
and I’ll make a difference in how the game is played!”
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