"Sure, M&As grab headlines for their multi-billion dollar deal values. But if you think it is only sale-price which is the key to success of such deals, you may be in for a surprise.
Talent management, executive rewards, coupled with governance and organisational culture have emerged as key factors to successful cross-border M&A, according to the results of Mercer’s 2012 Asia Pacific Cross-Border Post-Merger Integration Survey.
“Failure to address “people-centric” issues appropriately can jeopardise the overall success of a cross-border M&A deal,” the survey says.
"Planning and execution around critical areas such as talent management, executive rewards, governance and organisational culture are essential during all stages of transactions," said Mr Len Gray, Mercer’s Global & Asia-Pacific M&A leader.
Forty-one companies across Asia Pacific that had recently acquired a new overseas-based business were interviewed by Mercer. Those interviewed on a one-to-one basis from these companies include: Human Resource Directors, Business Development and Corporate Strategy Executives from forty-one multinational and large local companies across a wide range of industries (retail, energy, food and beverage, financial services, engineering and technology) participated.
Only 24 per cent of the respondents cited sale price as a critical success factor for their M&A.
The majority, 76 per cent, said that business and organisation integration was the most important success factor, followed by talent retention (59 per cent), pointing to a strong emphasis on people- related issues.
Interestingly, almost 60 per cent of respondents identified culture as a top key challenge during integration, but most companies’ integration plans lack the right kind of detail.
“Working with HR on a robust integration plan prior to deal-close is vital, and means that critical people-related details are properly addressed and managed,” the survey revealed.
The experiences of survey respondents indicate that engaging HR professionals from the outset helps protect against unanticipated people issues arising during integration.
It indicated that 66 per cent of companies see executive compensation and benefits as their primary focus during HR due diligence. However, many companies do not have a clear strategy for managing differing executive reward schemes. Handling discrepancies between pay packages on a case-by-case basis can lead to prolonged and costly negotiations.
Further, 61 per cent viewed governance of the acquired company as the second most important initiative during integration. Strategies reported range from taking majority board seats and appointing key executives, to leaving the new company in the experienced hands of its existing leadership. Either way, organisational governance is seen as a key consideration when mergers span borders.
The report also found that a culture integration strategy will not fly without the buy-in of senior leaders. Any successful plan needs to be developed, owned and driven by these key influencers.
Keywords: cross border M&A, merger and acquisitions, M&As, talent management, Mercer 2012 Asia Pacific Cross-Border Post-Merger Integration Survey, Mercer survey, Mercer."
(Source: ‘People-centric’ issues key to successful cross-border M&A: Mercer survey, by Richa Mishra, Business Line, July 27, 2012)
Monday, July 30, 2012
Friday, July 27, 2012
Social Bankruptcy
Within a fortnight after the shocking incident of gang molestation & public stripping of an innocent helpless girl at Guwahati, comes another shocker…A young lady is sexually harassed, slapped and assaulted by four youth in a moving train, in broad daylight and in full public glare. The lady, an orphan, runs towards the other part of the compartment to save herself when the youths ask for sexual favours in return for money. She refuses and resists and is thrown away from the train. The lady lands 25 feet below on a dry river bed…
Not a single passenger protested the crime or came to her rescue. Her only fault was that she was travelling alone in the train (read as without a male counterpart, in our country). She survived miraculously, but suffered grievous injuries. The place (Maddur) where the incident happened is only about 80 kms away for the IT super city Bangalore.
What is common between the two incidents? No prizes for guessing…devilish behaviour of few men and total public apathy. Such behavior is spiteful, unfortunate, uncivilized, savage and uncultured.
I am not exaggerating or over-generalizing but most men folk in this part of the world behave like wild animals. For that matter ask any girl or women in this country, if ever they have encountered any kind of teasing or sexually laced advances or attempts by men folk. Almost every female will tell you that they have witnessed something of this sort (minimum is an uncomfortable bad touch) at one time or the other in their lives. The culprits are all around the streets, lanes and public places, and many times the tormentors are close relatives and friends. The victims are helpless, most of the times, and silently suffer because of taboo or fear of social boycott (as by default a lady’s morality is questioned in such cases in our culture) or because of fear of physical security of self and of family members.
I am not painting the picture black, but undoubtedly there are lots of ugly black spots & blotches on our social canvass.
Even pathetic is the response of the custodians of the civil society. They are insensitive, preach morality to female victims instead and do nothing more than lip-service.
Organizations, mini-society in themselves, are mirror images of the larger society. At the cost of repetition perhaps, but I wish to emphasize that they need to be more cognizant of the social dynamics that prevails in countries like India. Such prowling vultures, who see women as an object of desire, could inhabitate organizations as stealthily as they populate the larger society, in the garb of official cloaks. The organizational policy and machinery must be sharp and alert to detect such people with sick minds and deal with them in the toughest manner possible.
A Melbourne Business School report has found that sexist jokes negatively impact women’s performance at work. The report also indicates that organizations fail to tackle ‘low-level of sexism’ despite having policies in place that target ‘overt sexual harassment’.
In India, the situation worsens further because the policies not only fail to check the rampant ‘low-level of sexism; in organizations but also many a time fails to deal ‘overt sexual harassment’ with an iron-fist. Amongst many reasons for the same, lack of proper reporting mechanisms, management apathy (much like prevailing social apathy), long legal route and social harassment of the victim, are the primary reasons. It’s high time organizations do something about this issue that perhaps single-handedly erodes engagement in organizations, especially of the female employees.
Socially and culturally, however, I feel we are close to bankruptcy. Hopes of social and cultural transformation seem bleak at the moment and without the same, I do not see how our organizations would be able to deal with such menace.
Not a single passenger protested the crime or came to her rescue. Her only fault was that she was travelling alone in the train (read as without a male counterpart, in our country). She survived miraculously, but suffered grievous injuries. The place (Maddur) where the incident happened is only about 80 kms away for the IT super city Bangalore.
What is common between the two incidents? No prizes for guessing…devilish behaviour of few men and total public apathy. Such behavior is spiteful, unfortunate, uncivilized, savage and uncultured.
I am not exaggerating or over-generalizing but most men folk in this part of the world behave like wild animals. For that matter ask any girl or women in this country, if ever they have encountered any kind of teasing or sexually laced advances or attempts by men folk. Almost every female will tell you that they have witnessed something of this sort (minimum is an uncomfortable bad touch) at one time or the other in their lives. The culprits are all around the streets, lanes and public places, and many times the tormentors are close relatives and friends. The victims are helpless, most of the times, and silently suffer because of taboo or fear of social boycott (as by default a lady’s morality is questioned in such cases in our culture) or because of fear of physical security of self and of family members.
I am not painting the picture black, but undoubtedly there are lots of ugly black spots & blotches on our social canvass.
Even pathetic is the response of the custodians of the civil society. They are insensitive, preach morality to female victims instead and do nothing more than lip-service.
Organizations, mini-society in themselves, are mirror images of the larger society. At the cost of repetition perhaps, but I wish to emphasize that they need to be more cognizant of the social dynamics that prevails in countries like India. Such prowling vultures, who see women as an object of desire, could inhabitate organizations as stealthily as they populate the larger society, in the garb of official cloaks. The organizational policy and machinery must be sharp and alert to detect such people with sick minds and deal with them in the toughest manner possible.
A Melbourne Business School report has found that sexist jokes negatively impact women’s performance at work. The report also indicates that organizations fail to tackle ‘low-level of sexism’ despite having policies in place that target ‘overt sexual harassment’.
In India, the situation worsens further because the policies not only fail to check the rampant ‘low-level of sexism; in organizations but also many a time fails to deal ‘overt sexual harassment’ with an iron-fist. Amongst many reasons for the same, lack of proper reporting mechanisms, management apathy (much like prevailing social apathy), long legal route and social harassment of the victim, are the primary reasons. It’s high time organizations do something about this issue that perhaps single-handedly erodes engagement in organizations, especially of the female employees.
Socially and culturally, however, I feel we are close to bankruptcy. Hopes of social and cultural transformation seem bleak at the moment and without the same, I do not see how our organizations would be able to deal with such menace.
Thursday, July 26, 2012
Social Media & Individual Liberty
Nothing is private on social media, not even when you try to ensure that it remains private by using closed groups or anything. Surprises on social media could be pleasant at times, and sometimes they may be definitely unwelcome. Like yesterday, someone tagged me to photo on Facebook without any knowledge of mine. When I checked my mail (that is my username for my FB account), I saw some 15 comments on that photo. The comments were not that good, worse some thought that I had posted that photo. However the good thing was that I could immediately clear the air by posting a comment and ensured that I could be untagged from the photo. Despite this the experience was not all that sweet. My right to express should not be hijacked by someone else who tags me to something that I neither know nor do I subscribe to.
Social media is a unique many to many communication tool that ensures messages, comments, news, events etc. becoming viral on the web in matter of minutes or hours. The impact is huge. The power of social media is unmatched and profound. It has given people like Justin Bieber superstardom status.
Having said this, from a user point of view one needs to be a little careful about one’s social media activity. Whatever one shares on social media could reach many intended and also to many more unintended in very less time. I am all for the free nature of social media. But I think both individuals and companies need to be careful of their social media activity that it does not breach any other individual’s liberty. No one has the right to trespass on the liberty of others, as much as they have right to protect their own.
Take for instance, late last year a British body that helps improve relationships with workers warned employers that they could end up being sued if they use sites like Facebook to spy on the private lives of their employees. The body found that some companies were using social media and web to glean personal information like religious belief of their employees and using it against them. While social media offers employers an opportunity to pre-qualify their candidates before hiring using social media and web information, technically called backchannel referencing; some companies seem to be trying to get hold of the personal information of their employees.
Social media is a unique many to many communication tool that ensures messages, comments, news, events etc. becoming viral on the web in matter of minutes or hours. The impact is huge. The power of social media is unmatched and profound. It has given people like Justin Bieber superstardom status.
Having said this, from a user point of view one needs to be a little careful about one’s social media activity. Whatever one shares on social media could reach many intended and also to many more unintended in very less time. I am all for the free nature of social media. But I think both individuals and companies need to be careful of their social media activity that it does not breach any other individual’s liberty. No one has the right to trespass on the liberty of others, as much as they have right to protect their own.
Take for instance, late last year a British body that helps improve relationships with workers warned employers that they could end up being sued if they use sites like Facebook to spy on the private lives of their employees. The body found that some companies were using social media and web to glean personal information like religious belief of their employees and using it against them. While social media offers employers an opportunity to pre-qualify their candidates before hiring using social media and web information, technically called backchannel referencing; some companies seem to be trying to get hold of the personal information of their employees.
Monday, July 23, 2012
Review Revisited...
An independent business daily review of my book 'Employee Engagement had apperaed in Business Line on Aug. 12, 2011. The review done by prominent journalist Anjali Prayag was a strong reinforcer - http://www.thehindubusinessline.com/opinion/article2347571.ece
Today while browsing the web, I bumped on another independent review of my book, this time by a reader of the book. The link is - http://hrfundae.blogspot.in/2012/02/employee-engagement-by-debasish.html?showComment=1343021395834
Such reviews help and act as a strong reinforcement. Thanks!
Today while browsing the web, I bumped on another independent review of my book, this time by a reader of the book. The link is - http://hrfundae.blogspot.in/2012/02/employee-engagement-by-debasish.html?showComment=1343021395834
Such reviews help and act as a strong reinforcement. Thanks!
Friday, July 20, 2012
Black Thursday
Chief of National Commission for Women in India Mamta Sharma has advised females to dress carefully, in light of the Assam molestation incident. Disgusting! Is this the reaction that you expect from someone who is holding such an important portfolio and over and above is a woman herself? So the fault lies with females & their way of dressing not in the prying & lustful eyes of the men who engage in such dastardly acts! In effect what Mamta Sharma is trying to suggest probably is that the girl who was molested in Assam was at fault not the assailants, who are still at large. Insensitivity appears to be an understatement!
Nothing can justify a crime. Yesterday’s incident at the Manesar plant at Maruti is again a grim reminder of the spreading tentacles of workplace violence. Yesterday the violent workers at the plant engaged in armed arson and rioting and killed the GM (HR) of the company. Awanish Kumar Dev, HR GM, was burnt beyond recognition while 100 others were injured. The rioting workers seem to have broken both the legs of the Awanish and he choked to death. He received 100% burnt injuries.
Workplace violence disengages everyone. Some very prominent incidents in India in the recent times are:
2008 – Place: Greater Noida - the CEO and Managing Director of Cerlikon-Graziano Transmission India Pvt Ltd was killed by a agitating workers.
2009 – Place: Near Coimbatore – Roy Geroge, the Vice President (HR) of an auto manufacturing company was killed by a group of sacked workers in his cabin in the company's unit about 20 km from Coimbatore.
2011 – Place: Bolangir (Orissa) - the DGM (operations) of Graphite India Ltd – Powermax Steel division, was killed when some suspended workers staging ‘dharna' outside the plant stopped his car and allegedly set it on fire.
These are the ones which made headlines. But if one understands the entire gamut of workplace violence, as defined by ILO, then hundreds others go unreported every year, in India, and all over the world. Only some countries like Canada have strong and comprehensive legislation to deal with all forms of workplace violence.
Coming back to Maruti incident, workers have every right to protest & demand but no one has the right to engage in violence or to kill somebody. The slain GM (HR) has a family with a 10 year old son. Besides a young life being snuffed- away cruelly, the trauma that his family will face throughout their lives is unimaginable. Those responsible should be prosecuted and punished in the toughest manner possible to be a lesson for others.
Although the Maruti issue is complex, if one has followed the trail of strikes and incidents since last year. The company’s management and HR failed to assess right from the beginning the enormity of the HR problem and finally things seem to have exploded. However even this cannot justify what happened in the Maruti plant on Thursday. It is unfortunate, tragic and gruesome and calls for stringent actions. Maruti may even not see any reason to keep the Manesar plant running in the future!
Mamta and Maruti workers made yesterday a black Thursday for humanity!
Nothing can justify a crime. Yesterday’s incident at the Manesar plant at Maruti is again a grim reminder of the spreading tentacles of workplace violence. Yesterday the violent workers at the plant engaged in armed arson and rioting and killed the GM (HR) of the company. Awanish Kumar Dev, HR GM, was burnt beyond recognition while 100 others were injured. The rioting workers seem to have broken both the legs of the Awanish and he choked to death. He received 100% burnt injuries.
Workplace violence disengages everyone. Some very prominent incidents in India in the recent times are:
2008 – Place: Greater Noida - the CEO and Managing Director of Cerlikon-Graziano Transmission India Pvt Ltd was killed by a agitating workers.
2009 – Place: Near Coimbatore – Roy Geroge, the Vice President (HR) of an auto manufacturing company was killed by a group of sacked workers in his cabin in the company's unit about 20 km from Coimbatore.
2011 – Place: Bolangir (Orissa) - the DGM (operations) of Graphite India Ltd – Powermax Steel division, was killed when some suspended workers staging ‘dharna' outside the plant stopped his car and allegedly set it on fire.
These are the ones which made headlines. But if one understands the entire gamut of workplace violence, as defined by ILO, then hundreds others go unreported every year, in India, and all over the world. Only some countries like Canada have strong and comprehensive legislation to deal with all forms of workplace violence.
Coming back to Maruti incident, workers have every right to protest & demand but no one has the right to engage in violence or to kill somebody. The slain GM (HR) has a family with a 10 year old son. Besides a young life being snuffed- away cruelly, the trauma that his family will face throughout their lives is unimaginable. Those responsible should be prosecuted and punished in the toughest manner possible to be a lesson for others.
Although the Maruti issue is complex, if one has followed the trail of strikes and incidents since last year. The company’s management and HR failed to assess right from the beginning the enormity of the HR problem and finally things seem to have exploded. However even this cannot justify what happened in the Maruti plant on Thursday. It is unfortunate, tragic and gruesome and calls for stringent actions. Maruti may even not see any reason to keep the Manesar plant running in the future!
Mamta and Maruti workers made yesterday a black Thursday for humanity!
Tuesday, July 17, 2012
Ass(h)am(e) on us!
A mob in Guwahati, Assam, gropes, molests and strips a teenage girl in full public glare for 30 minutes before help comes in the form of police. No one comes to the rescue of the hapless girl. Reportedly, a TV journalist induced the mob to do the act. Some officers in the administration reportedly make light of the incident.
A U.P. Khap Panchayat has issued a decree according to which all girls and women under the age of 40 must stay indoors. The older ones who are allowed to step-out must cover their faces with cloth like that of a corpse. What more…a state minister has reportedly supported the Khap’s diktat.
A class VIII student is sexually assaulted by a bus driver in Hyderabad that leaves her traumatized. Despite the complaints by the parents, the authorities fail to act. In the past one month there has been series of sexual crimes against minors in India.
What kind of society do we live-in? A society that treats its girls and women as cattle, or may be even worse! All in the name of so-called our great culture. I feel ashamed! The unabashed boldness of the perpetrators of such crimes and the total apathy of the public is shocking!
Organizations when they engage female employees in this country must remember the cultural under-currents and dynamics that prevail here. They have to first fight the bias of their families, then are ostracized by the immediate society and ultimately face the apathetic and many times demonic society. Only then they manage to survive and achieve. Organizations in their attempts to engage female workers must not look at their efforts as any favour doled out to the perceived 'weaker gender'. On the contrary, they are engaging a class of employees who have faced challenge as a habit in their lives.
The only heartening thing in the recent Assam incident has been the rare public wrath against the incident and the administration and the pressure by social groups, like an NGO putting-up a hoarding with photos of the brutes who tormented the hapless girl. I salute all girls and women in this country who bravely face such challenges every day at home and away!
A U.P. Khap Panchayat has issued a decree according to which all girls and women under the age of 40 must stay indoors. The older ones who are allowed to step-out must cover their faces with cloth like that of a corpse. What more…a state minister has reportedly supported the Khap’s diktat.
A class VIII student is sexually assaulted by a bus driver in Hyderabad that leaves her traumatized. Despite the complaints by the parents, the authorities fail to act. In the past one month there has been series of sexual crimes against minors in India.
What kind of society do we live-in? A society that treats its girls and women as cattle, or may be even worse! All in the name of so-called our great culture. I feel ashamed! The unabashed boldness of the perpetrators of such crimes and the total apathy of the public is shocking!
Organizations when they engage female employees in this country must remember the cultural under-currents and dynamics that prevail here. They have to first fight the bias of their families, then are ostracized by the immediate society and ultimately face the apathetic and many times demonic society. Only then they manage to survive and achieve. Organizations in their attempts to engage female workers must not look at their efforts as any favour doled out to the perceived 'weaker gender'. On the contrary, they are engaging a class of employees who have faced challenge as a habit in their lives.
The only heartening thing in the recent Assam incident has been the rare public wrath against the incident and the administration and the pressure by social groups, like an NGO putting-up a hoarding with photos of the brutes who tormented the hapless girl. I salute all girls and women in this country who bravely face such challenges every day at home and away!
Friday, July 13, 2012
Resident Evil
"Over the last few years, Microsoft has gained a reputation as a rough place to work.Ex-employees have publicly complained that the company is political and bureaucratic.
Now a tell-all book published earlier this year depicts Microsoft as downright soul-crushing.
"Stack Rank This! Memoirs of a Microsoft Couple" was written by two married, ex-employees who left the company around 2008 and felt compelled to warn others about the Microsoft culture. They identify themselves only as Jason and Melissa.
While it's true that their stories are just the thoughts of two ex-employees, many of their complaints are still lobbed at Microsoft via employee reviews on Glassdoor and in our research when talking to former employees. We've read the book and skimmed out the most outrageous stories."
(Source: Microsoft Is Filled With Abusive Managers And Overworked Employees, Says Tell-All Book by Julie Bort)
SO WHAT IS THIS 'STACK RANKING'?
"Microsoft's Stack Ranking review process predetermines the number of good, bad and mediocre reviews the company gives to its employees.
Microsoft uses a 1 to 5 scale, with 1 being the best and dictates that 20% of employees get a 1, 20% get a 2, 40% get a 3, 13% get a 4, and 7% get a 5. Those people probably get fired, explained anonymous Microsoft blogger Mini-Microsoft in one of his many blog posts about it.
This turns teammates into competitors. No matter how well a team does, most of them will get a mediocre review and a few will be scapegoats. It also means the best people at the company don't want to work together because only one person can be the top ranked employee in his or her group.
Patrizio's source, an unnamed Microsoft employee, also shared these details:
(Source: Microsoft Is Filled With Abusive Managers And Overworked Employees, Says Tell-All Book by Julie Bort)
SO WHAT IS THIS 'STACK RANKING'?
"Microsoft's Stack Ranking review process predetermines the number of good, bad and mediocre reviews the company gives to its employees.
- Although Steve Ballmer is credited as the architect of the review process, when top HR manager, Lisa Brummel, took over in 2005, she promised to fix it. Instead she's instituted a series of tweaks that sometimes made it worse. This made Brummel " perhaps the most universally hated exec in the place," the employee said.
- Employees who are in the lower rankings (3,4, and 5) effectively can't transfer to other departments within the company, the employee said. This is unfair because they might be struggling in one group, but would be able to flourish in another group. (Heck, they might not even be struggling, but someone has to get a 3, 4, or 5.)
- Groups are also ranked against each other. Managers then have to fight amongst themselves to get resources for them.
- There are two review seasons, meaning this process -- and the stress of it -- goes on almost all year long. It also means people are working with very short term goals in mind."
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