How can you address diversity and inclusion in a merger or acquisition?

Having gone through two acquisitions in my career, the most important thing is to have open dialogue with the people. What has the experience been? What do they wish it was? What are they most concerned about losing with the merger? What are they looking forward to? The answers to these questions can provide lots of insight into the inclusivity of both organizations, and provide a pathway to ensure there are different perspectives shared throughout the process.

It's always important to engage with your people early. In this particular case of an M&A you should have representatives from EDI groups across both orgs at the table when planning employee experiences. For example, you should focus upon the Moments that Matter to enable a successful M&A and create Employee Journey Maps for them. Having representation from EDI groups at source, when planning the experiences, will be of huge benefit. It will mean you don't have to retrofit EDI considerations. Get it done early and get it done right!

Before embarking on a M&A journey it is paramount to asses current state of D&I, by conducting a thorough analysis of the demographics, policies, programs, and climate of each organization, leaders can gain valuable insights into the strengths, weaknesses, opportunities, and threats related to D&I. To achieve this getting feedback from employees at all levels is crucial especially in times of disruption. To achieve this you can employ various methodologies such as surveys, interviews, focus groups, and data analytics. Identifying potential gaps and challenges related to D&I will enable the organization to proactively address any issues that may hinder the success of the M&A process and/or impact the overall employee experience.

In a merger or acquisition, addressing diversity and inclusion involves: Assessing both entities' D&I policies. Creating a unified, inclusive culture plan. Ensuring diverse representation in integration teams. Training staff on D&I awareness. Communicating transparently about D&I goals and progress. Encouraging open dialogue and feedback. Monitoring and adjusting D&I strategies post-merger.

DE&I can be ambiguous at times. “What are we trying to achieve?” Often it’s not just a population count within an organization, but results. Defining outcomes helps you to benchmark SMART KPIs. Ask your people and do a little research. Surveys tell you a lot about how people feel, but outcome indicators like attribution rates, promotions, time off and absence use can be indicators as well about how people feel about bringing their whole selves to work. Take time to define where you want to be in actual EX, then the how to get there becomes clear.

In M&A, start with due diligence to assess each company's D&I stance. Set shared D&I goals, involve diverse stakeholders in planning, and create a resourced action plan. Communicate the D&I vision, train staff, especially leaders, monitor progress with KPIs, and actively seek feedback for continuous D&I improvement. Leadership must embody and drive D&I values.

Inclusive culture is simple to say but sometimes hard to achieve. Ask the tough question “Can everyone bring their whole self, as they are, to work and thrive?” If the answer is no you may have diversity but not inclusion. Inclusion is when everyone feels like they are not just part of the team, but a contributing member at all times and contexts, being completely unmasked.

Diversity Training and Education: Implement diversity training programs to educate employees about the importance of diversity, inclusion, unconscious bias, and cultural sensitivity. These programs can help in fostering a more inclusive environment.

Fostering a culture of inclusion in a merged entity should be a priority to promote a sense of belonging and collaboration, organizations should model and reinforce inclusive behaviors. Leadership plays a vital role by demonstrating inclusive behaviors, leaders can inspire employees to follow suit. It is important to address any issues/conflicts related to D&I in a timely manner and to celebrate the diversity of employees. By modeling inclusive behaviors, addressing issues promptly, and celebrating diversity, organizations can create a culture where employees feel valued and empowered. Not only is this ethically and morally important, but it also provides strategic advantages in M&A, enhancing performance, innovation, and reputation.

Consider conducting a thorough diversity assessment of both organizations, creating a diversity and inclusion task force, providing diversity training, and fostering an inclusive culture through open communication and leadership support. Additionally, ensure that policies and practices promote equal opportunities for all employees. Regularly assess and adjust these initiatives to ensure ongoing effectiveness.