Our division is merging with another division that is less productive and brings in less money to the company. My questions is does anyone know happy ending stories with mergers? As far as I can remember with typical wall street mergers, this is often just a stepping stone for more layoffs and more budget cuts until there is nothing left.
I still have a job for now, but no matter what my supervisor tells me, I don't find it reassuring in regards to our long term future. I'm starting up a job search now and is finding going to work in the morning less motivated and even a bit anger at upper management peeps.
Sometimes I wonder if those people even consider how much hurt they can do to team morale with mergers. People may still have their jobs but they might as well not have them working in fear that in 3-6 months more jobs cuts might occur.
Focus on performance...
Tech Boy,
You must listen to the "Managing during Mergers and Acquisitions" podcasts: http://www.manager-tools.com/2006/08/managing-during-mergers-and-acquistions-part-1-of-2
I've been through a few, and yes, good can come out of it. So can bad. And you can't control everything that happens.
Do you know why the merger is happening? Is it cost savings, strategic alignment, or product portfolio rationalization? Could they be hoping your performance will help bring theirs up? The strategy will help you figure out what might be in the cards.
They won't fire everyone...they'd just do that without going through the merger hassle. But there will be redundancy, and people will lose the game of musical chairs. And remember: job cuts are taking place everywhere without mergers. In this economy, moving to another company won't give you job protection.
Why are you angry and demotivated? How has the merger kept you from doing good work and contributing to the firm? As I mentioned, I've been through a few mergers, and it's tough. Nonetheless, it's hard for senior managment too, and they wouldn't do without a reason. It's very easy to get caught up in the water cooler talk and the gossip and the rumors and the trash-talking. It's harder, but more professional, to take a positive attitude, work to understand the rationale, and figure out how to succeed in the environment.
You can rise above it; you can be the person who knows the strategy, knows his team's contribution, and works during this time to improve your company's performance. If you refuse to be negative, if you keep your morale up and your team's morale up, and if you continue to produce good results....that is the best protection against layoff.
John Hack
I'm told it's a cost saving
I'm told it's a cost saving move. I suppose the expectation is for our group to "rescue" the other by pooling best of both divisions. There is some upper management re-organization as well, I don't think this is a coincident but rather a good chance of power struggle at top and this is just a trickle down effect.
However, you are right, there is not much we can do at our level except continue to do the best at what we do and contribute to the bottom line. Although, there is never a job safety guarantee before, this feel less reassuring than ever. Knowing your fate isn't judged by your work but rather duplicated position else where within the organization...hence the anger and demoralization. I may still have my job but yet I feel more align with people whom lost theirs...does this make sense?
We choose
Cost savings oriented mergers are the most difficult.
And your fate may not be ENTIRELY judged by your work, but it does in fact have a great influence. Political skill (or lack thereof) and luck also play a part. But as the old adage goes, "...grant me the ability to change the things I can, to accept the things I can't, and the wisdom to tell the difference."
Moreover, there are many ways to interpret the impetus for such actions. Of course there is a political side to it. But you know, every company out there is going through intense cost savings. The economy is really very tough. So I doubt the merger is pure political sport; there are undoubtedly strong financial reasons for finding ways to reduce costs for the same level of output. Unfortunately few mergers are run really well, to the point where everyone in both organizations feel informed, believe the strategy is sound, and see decisions being made without regard to politics. Likewise, there are probably some good decisions being made. Consider this: Do you think your company should reduce costs? Do you think your division could run their operation better? Do you have competitors who are cutting costs and being more productive?
Mark tells a story about an umbrella. Short version: "He didn't make you angry; he poked you with an umbrella. YOU made yourself angry." There is no reason why your response to this merger can't be: "Wow, let's show them how good we are! This is our chance to shine while the spotlight is on performance!"
John Hack
Attitude counts
Having been in charge of a merger; one of the things I found helpful was someone that had a good attitude. Let's face it - i get enough grief because of the merger and I find somebody that isgenuinely interested in seeing the merger succeed - I need more people like that to make my life easier.