It is now conventional wisdom that the future success of an acquired company is determined in the first one hundred days.

Most of the critical decisions and actions during that most crucial period almost invariably relate to people.

In evaluating a possible new deal, emphasis is quite properly given to the financial side of the equation.   Often, however, insufficient attention is given to the people side of the equation.  

The fact is, the most common causes of failure in mergers or acquisitions is the neglect to identify organizational and people issues before the deal is made, or to quickly resolve the issues when the new entity is created.

Gravitas People, from the Gravitas Partnership, is designed to help acquiring companies overcome the causes of these shortcomings and pave the way to a smooth and successful integration of organizations and human resources.

We investigate and assess issues such as:

How effectively the targetted company is organized and managed.

The extent to which operating efficiencies can be achieved following acquisition - their nature, and cost of implementation.

The degree to which synergies between the acquiring company and the acquired company can be achieved, and overlaps eliminated - their nature and cost of implementation.

The quality and "trained-state" of the managers and employees; and the cultural and psychological issues
  inherent in any major change.

These aspects are rarely a "deal-stopper", but can lead to significant costs, and are relevant to the negotiations - both on price and the terms of the contract.

Having agreed to a deal, it is crucial that human resource strategies and action plans are developed before taking over control of the new company.   The action plans must then be quickly and effectively implemented.

The support provided by Gravitas involves the three critical stages:  
Pre-Deal, Pre-Implementation and Implementation.

Pre-Deal

Involvement in the due-diligence process – the people and organizational assessment.   

In particular, Gravitas will:

Carry-out an evaluation of the management (its strengths and weaknesses, individually and as a team)

Identify the strengths and weaknesses of the organization structure, and the effectiveness of its operational processes

Evaluate the deployment and levels of manpower

Assess the appropriateness and levels of the compensation and benefits

Review and evaluate the other HR policies, processes and practices

Investigate any "special deals" in existence for individuals or groups, which may affect future costs or flexibility

Identify any work-force issues – over-all quality, morale, and any industrial relations issues

Assess the target's corporate culture and its compatibility

The objective here is to evaluate 1) evaulate the relative levels of risk, 2) assess the cost of rectifying any issues and the potential need for specific terms in the acquisition contract to fund any corrections, and 3) to identify factors and opportunities that can ensure a successful transition.

Pre-Implementation

Assisting the acquiring company to decide how it wishes to manage the new company, including:

Reviewing which senior managers to retain and which positions to fill from elsewhere in the corporation. 

Deciding what combination of policies, processes and practices – from the acquiring and acquired entities' international and local practices – will be adopted in for the new organization.

This will essentially determine the intended culture of the new company.

Gravitas works with the acquiring management to develop strategies, and action plans, function by function, to ensure that the new company is effectively implemented within the first one hundred days.

Implementation

When "the button is pressed", Gravitas will Project Manage the implementation of the action plans – working with the new management to implement the necessary operational actions and ensure the transition is accomplished successfully.

The Gravitas Partnership is a timely and crucial resource that can help companies avoid the pitfalls and maximize the potential of newly acquired assets through effective planning and efficient implementation of organizational strategy and human resources management.

Gravitas People Organizational Strategy & Human Resources Management also has services for the following specific needs:  Managing Growth, People Issue Trouble Shooting and Social Responsibility and Business Ethics.