Sunday, October 18, 2009
The Rs. 100 crore Garbage
Thursday, October 15, 2009
Role of HR in M&A’s
An article which I submitted for an event at XLRI.
Investment bankers have a narrower training, and are rewarded for making deals; human issues tend to get lost or overlooked.
Before, during, and after the merger, HR may be responsible for assuring that cultural issues do not derail integration; for increasing innovation; for keeping communication going in all directions (upwards, downwards, across departments, across organizations); and for lessening the impact on those who are “survivors”.
In pre-acquisition phase things that need to be taken care of:
- An assessment of the cultural and organizational differences, which will include the organizational cultures, role of leaders in the organization, life cycle of the organization, and the management styles.
- To ensure that both organizations have a strategy mapped out in advance. Once the merger starts taking place, people will often be too busy to keep a strategic perspective.
- Communications to employees and customers as to where layoffs will take place (if any do), and how the cultures should be merged.
During the merger, HR plays an important role in:
- Communication – As people look inwards to try to find their place in the merged company and attempt to see their future in it – or outside it – productivity drops. Consistent and honest communication from the HR is very essential.
- Power and Conflicts – HR can help bring out conflicts to the surface and deal with power issues honestly. Employees often get wrapped up in turf wars which are destructive to both sides, rather than trying to figure out roles for both sides and have a win-win situation.
- Culture – HR may need to raise the issue of culture – how people work, how they think, what they value, and how they view the other organization. These issues must be addressed up front.
- Operations – In many mergers and takeovers, power relationships determine operational changes, rather than actual efficiencies or quality concerns. By making changes with facilitated cross-platform teams, HR can help to ensure that the best of the two organizations are preserved.
Post-acquisition, HR would have the following critical roles:
- Power equations between management and trade unions (if any) needs to be dealt with utmost care. These are the issues which are very brittle.
- Designations for the employees
- Compensation structure and performance appraisal systems
HR no longer plays a dormant role and is emerging as a strategic business partner where key initiatives undertaken such as communication, training, counseling, career planning, support workshops, building trust, coaching and compensation planning, have significant business impact.
Thursday, October 8, 2009
Conversations
Monday, August 3, 2009
Gleam in the Dark
Sunday, June 28, 2009
Faceless
Sunday, May 24, 2009
People. Politics. Power. PM
It all started with the cash rich political parties who left no stones unturned to woo the voters, both rural and urban. Of course rural population holds more weight for them as they are more easily influenced by the Pink Elephant like imaginary promises made by our netas. During the campaigning season, the political parties as well as the government somehow forget their primary job i.e., running the country. They are more concerned about how to come to power for the next 5 years. Pathetic.
Then its time for the people. Yes, it includes the great middle class of India who are expected to come in large numbers to vote during the D-day but somehow the voting percentage which is announced polls reflect otherwise. Most of them are too lazy to come out to vote, a greater majority do not have their names in the voting lists and some think one vote would not count much. Disappointing.
Then there is the Vote for India like campaigns. Rightly so. They say opinion is like an asshole, everybody has one. But Jeffery Archer puts it correctly, 'If they do not vote, they should shut up, they do not have any right to an opinion'. 714 million people, that is the number of voters in our country. A number which mesmerizes the developed world. An election of such magnitude to be conducted more or less flawlessly from the highest point in Ladakh to a village in the eastern Assam where a polling booth was setup for just 3 voters. Amazing.
Then there are the political parties and the players. Permutations, combinations, bribes, public abuses, apologies, friends, enemies...we have seen it all. Its a drama of the most unimaginable nature, where political candidates are least ashamed to portray themselves in the public. Not to forget the latest trend of shoe throwing. Power is the final destination. Power to control the country. power to fulfill personal desires, power to be the leader, power to run the greatest democracy in the world. There is also the power to make India a better place to live in, the power to make India a SuperBrand, the power to lift it to greater heights, but these powers are not the ones which everybody likes to have. Floyd says, 'Money, it's a gas. Grab that cash with both hands and make a stash. New car, caviar, four star daydream, Think I'll buy me a football team.' True.
And then there is the PM, the Prime Minister. A magical post which has enchanted everybody from Advani to Jayalalitha to Mayavati to Nitish Kumar. I hate to imagine if somebody like Mayavati becomes the PM. What is she going to speak when she goes on the World Economic Forum conferences. The post has seen a lot of mockery over the years. As TOI one day reported, people who retire at age 60 are not deemed fit to work, they very reason why they are given a respectable exit channel from the companies. But as a counter view, as Indian politics need the youth, they also need elderly statesmen to guide and transition them. But some of our elderly statesmen consider the seats of power inherited. There are no friends or enemies here. The political system of India works on the strategy of opportunism. Do not let go of power. If not own it, buy a stake and you will rejoice. Unbelievable.
And finally the results today show UPA to be in a comfortable position to make it through. It does not really matter which party comes to power. What matters more is that one party gets most of the majority and they make a stable government, not a government with 10 strings attached to different directions and all directions exerting forces to pull it down. A stable government is what the Indian economy needs too and I would be surprised if the markets do not show an upward trend this Monday. Hopefully wisdom will prevail and the ministers who make it to the top chairs think about the country first and not work for their personal vendetta. Wishful Thinking, but that is what India needs.
Shifting parties, never-imagined alliances, players with not one but many faces. That, has been the bewildering landscape of Elections 2009.