What are the most important skills to have when managing a merger?

In my experience, having led one of the biggest mergers in the telecom infrastructure industry, it is all about clear articulation of vision from the top percolating through the organization. What worked for us was establishing the principles of merger, identifying key derailers and proactively working on them so that they don't become spoilers. Another key principle is to ensure no disruption for the customers and being transparent about the impact on people, if any. It is important to allay unfounded fears at the inception and take empathetic action on the ones effected. This helps build trust in the organization which then acts as a major catalyst to the success of the merger. Finally, like other aspects, it's all about people.

Sometimes, companies do not get the desired benefits of a merger. I have experienced the same thing. When two telcom giants merged, they did not get the expected benefits. There was so much uproar as both companies had separate arrangements/contracts with the same vendors. To achieve the actual benefits, they had to modify all the contracts and it took them almost a year to complete this exercise. I raised the issue when my management was expecting it to be smooth. The best part was that initially my management did not agree with my viewpoint and when I demonstrated it with real data points, it was a completely different atmosphere in the meeting room. It gave us more time to make well-prepared decisions.

In the heart of a merger, strategic vision is your compass. I’ve learned it’s not just about aligning products or services. It's seeing beyond day-to-day complexities, discerning how each piece fits within the grand business puzzle. A solid vision ensures decisions are not just tactical but trailblazing, guiding your team and company confidently towards a shared horizon. It’s about painting the 'big picture'—one that rallies employees, reassures stakeholders, and reshapes the market landscape.

Effective communication is critical during a merger. You need to be able to communicate with a wide range of stakeholders, including employees, shareholders, customers, and regulators, to ensure that everyone is informed and aligned with the plans for integration. Mergers can create conflicts, and it's essential to have strong conflict resolution skills to address these issues as they arise. Effective conflict resolution involves managing differences and finding compromises that benefit both parties involved. Mergers often involve bringing together employees from different organizational cultures. You need to be able to understand, navigate, and manage these cultural differences to ensure that everyone feels included and valued.

Well articulated and captured. We also have similar experience managing two mergers in India. Clarity of vision is very elementary and fundamental.

A merger is not only about merging business / markets , it is about merging cultures and the ways of working . It’s a key enabler . Many mergers struggle when the culture and people integration are not planned and adhered to with utmost precision and care .

Yes Partha, sharing important stories that employees have identified with, in every entity, can make both sides be more understanding and accommodating. It is emotions buried deep within that eventually drive us. So important …

From my recent experience, I know that when managing a merger, emotional intelligence plays a vital role in its success. It involves recognising and managing our own emotions, as well as the emotions of others. This skill allows us to cope with the stress, uncertainty, and change that come with a merger. Additionally, emotional intelligence enables us to empathise with the feelings of our team, peers, superiors, and employees, fostering trust and rapport. Emotionally intelligent managers are also skilled at motivating and inspiring others, handling difficult conversations, and providing constructive feedback. By developing emotional intelligence, we can effectively navigate the challenges of managing a merger and achieve positive outcomes.