One very successful high-technology company that I worked with in the past chose
this way to enter new strategic markets. Interesting to note, before it started
acquiring companies, this organization was not attractive to the best technology
people because its management had a "hire/fire" mentality. In good times, it
staffed up; in bad times, it laid off. Few people wanted to work there, and
fewer still would follow-up on a recruiter's call. This forced the company's
management to stop looking at recruitment as a solution to long-term growth. It
no longer could start new businesses and staff accordingly. Instead, it used
acquisitions to acquire talent as well as companies.
Fear of Job Loss
Though it is only human nature to fear job loss as a result of a merger, layoffs
are not necessarily the norm. Just look at how Cisco Systems continually
acquires and integrates new companies. They have a well-organized team of
professionals dedicated to ensuring a smooth transition in both the product and
market issues and, just as importantly, to retain talent.
In technology organizations, talent is key. Few organizations have the luxury of
time to build a team from the ground up. Today, if your organization is
interested in moving into a new market, it may well buy or marry its way in. It
makes good business sense to buy a team intact when merging for growth.
A more in-depth look at recent business headlines bears this out. When AOL
acquired Time Warner, the intent was to marry the new economy with the old.
However, the marriage means much more for employees. In this merger, AOL
acquires management with experience at building and sustaining content, material
that people want to read or view. And, Time Warner takes a quantum leap forward
in terms of technology skills. The upside for both organizations is obvious. The
actual marriage, however, has to be made to work. If job losses occur, they most
likely will result from the inability of people from both organizations to work
together. Though people from both organizations have the skills necessary for
this new organization to thrive, how well they work together will foreshadow
success or failure.
Assess Your Talents
Almost all companies are looking at mergers and acquisitions, joint ventures and
strategic alliances in one way or another. When a merger, acquisition, or
another alliance is announced, the best way to react is not to run scared and
brush up the resume. Instead, objectively assess your talents in both the old
and new organizations. Ask yourself where did you fit in before and then
ascertain where you might fit in in the future. You may be pleasantly surprised
to realize that the new organization can help you develop further and that your
best chances for long-term success may well lie with the success of the new
organization. Furthermore, long-term success for the new organization may well
be dependent upon you and others like you in your organization, making a smooth
transition.
Michael D. Zinn & Associates, Princeton, N.J., is an executive search firm
offering special focus on high-level positions such as chief executive officer,
president, and senior management.
