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Writer's pictureHana Chen Zacay

#9 Blog. Ever merged two units into one? Trust: The Essential Element in Mergers - A VP's Transformative Case Study

Updated: Jul 16

 

My two cents on LEADERSHIP today:

In between managing and leading change (yes, there is a difference), navigating Mergers is quite unique, aiming to improve efficiency and gain better business results. It’s in your hands as leaders to spearhead the right business transformations, ultimately yielding superior business outcomes.  


You might lead mergers at any time, no matter if you are managing for the first time, or the fifth time. While it's natural for fears and anxieties to surface, need to remember we took the keys to ride this Ferrary, don’t we?


Given that we are essentially altering the landscape beneath our people's feet, they must feel confident you will lead them to a safe zone. Earning their confidence in the process is a must. You can even (and should) measure the level of trust when driving a change and transformation.


Be the first to lead. Trust is your secret ingredient.  


 

After two years serving as a VP, Alex, with whom I've partnered closely, encountered a significant turning point. In a move aimed at enhancing efficiency and streamlining operations, the executive leadership team opted to integrate a distinct business unit into Alex's current division. The decision to merge the units was driven by the company's strategic objectives to consolidate resources, reduce duplication, and enhance collaboration. This strategic maneuver is a common practice observed across various industries, irrespective of their scale, sector, or geographical location. Each merger brings numerous opportunities along with several challenges, including differences in organizational culture, processes, and systems between the merging entities. Yes! even if we are dealing with the merger of 2 existing units.


Understanding the significance of transparent communication and alignment, Alex embraced a proactive leadership style to navigate the transformation process. Collaborating closely with him, we embarked on the journey to craft and implement a comprehensive strategy. Our plan prioritized collaboration, transparency, and open communication, articulating a clear vision and strategic objectives for the merged unit. This emphasized the mutual goals and advantages of the merger.


Among the key initiatives are:

  • Establishing Clear Goals: Defining objectives and metrics for roles and responsibilities.

  • Cultural Integration: Fostering unity through open dialogue and respect.

  • Process Alignment: Streamlining workflows and enhancing efficiency.

  • Team Building: Promoting collaboration and knowledge sharing.

  • Communication Plan: Ensuring transparent communication and addressing employee concerns promptly.


 

Sounds easy, right?

Alex leadership was evident, that’s for sure, yet he encountered a significant obstacle: resistance from middle managers in the merged unit. They were concerned about potential changes to their roles and responsibilities after the transition Ambiguity surrounding reporting lines and decision-making authority, leading to confusion and frustration. Primarily, they lacked confidence in Alex's ability to support them! There was a lack of trust!


We recognized the critical need for full leadership alignment to ensure the success of the transformation. To achieve this, we implemented additional key strategies and actions:


  1. Transparent Communication: We ensured open and transparent communication with middle managers, defining their roles and responsibilities clearly within the new structure.

  2. Engagement and Involvement: We actively involved middle managers in the integration process, seeking their input and feedback to foster buy-in and reduce resistance to change.

  3. Training and Development: We designed and implemented development programs focusing on leadership and change management skills to empower middle managers for effective adaptation to their new roles.

  4. Conflict Resolution: We provided guidance on conflict resolution strategies, emphasizing open dialogue and collaborative problem-solving to address conflicts promptly and prevent negative impacts on the integration process.


Ultimately, Alex realized that trust was the cornerstone of successful integration. It influenced team dynamics, performance outcomes, and employee engagement, permeating every aspect of operations. Prioritizing trust-building was challenging but essential for achieving success within the merged unit. 


Trust: The Essential Element in Mergers
Trust: The Essential Element in Mergers

 

Is it measurable?

I know, Trust is often seen as intangible, but its impact can be quantified (qualitative and quantitative wise):

  1. Enhanced Team Dynamics: High-trust teams exhibit enhanced collaboration, communication, and commitment to shared goals, resulting in increased productivity and effectiveness. Measurement can be conducted through surveys, assessments, interviews, or focus groups.

  2. Performance Outcomes: High-trust teams consistently achieve deadlines, surpass targets, and produce high-quality work, contrasting with low-trust teams that encounter delays, conflicts, and inferior results. Measurement involves analyzing KPIs and studying case studies or success stories.

  3. Employee Engagement: Trust significantly impacts employee engagement and morale, as trusted leaders cultivate a sense of value, motivation, and commitment among team members. Conversely, lack of trust leads to disengagement, demotivation, and higher turnover rates. Measurement methods include employee engagement surveys, interviews, or focus groups.

  4. Relationship Building: Focusing on trust-based relationships involved investing time in understanding team members, listening to their concerns, and demonstrating empathy and authenticity. These efforts bridged the gap between the merged units, fostering unity and a common purpose. Measurement methods include team effectiveness surveys or observations during team dynamics.

  5. Alignment with Company Values: Trust closely aligned with the organization's core values of integrity, transparency, and respect. Focusing on trust-building initiatives reinforced these values, creating a positive work environment. Measurement methods include employee surveys and interviews.


 

To conclude

Alex's leadership during the unit merger highlighted the paramount importance of confidence. Despite facing challenges, his proactive approach and transparent communication fostered successful integration. The measurable impact of trust across team dynamics, performance outcomes, employee engagement, relationship building, and alignment with company values underscores its pivotal role in achieving positive organizational outcomes. Moving forward, prioritizing trust-building efforts remains essential for leaders navigating change, empowering teams to drive success amidst uncertainty. 


Given that we are essentially altering the landscape beneath our people's feet, they must feel confident you will lead them to a safe zone. Earning their confidence in the process is a must. You can even (and should) measure the level of confidence when driving a change and transformation.


Be the first to lead. Trust is your secret ingredient.  

 

 

Need help thinking it through?

Need for "Trust in the workplace" workshop?



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