No Plan is Not a Good Plan

“The time to repair the roof is when the sun is shining.” ― John F. Kennedy, former US President

It goes without saying that the current economy is confounding the markets. Up is down. Down is up. The only thing consistent in this market is inconsistency. This is certainly true in the current deal landscape. Gone are the days, at least for now, of acquirers competing against others and paying multiple multiples for the opportunity to acquire and integrate a distinct organization into theirs’. No one knows what the market(s) will do next. However, that doesn’t stop the experts from trying to time the market and stay one step ahead. Is your organization one of those who are trying to thread the needle, take advantage of price reductions and scope out targets the minute the economy signals a turn for the better? Or is your organization bargain hunting as we speak?

So, while the market is in turmoil and organizations are regrouping and taking a breath, now is the time to act. It would be foolish to let this opportunity pass by.

“A man who does not plan long ahead will find trouble at his door.” ― Confucius, philosopher

Like Confucius, heed my wisdom. Ok, maybe wisdom is too optimistic a word for my advice but humor me. The time to plan is when you have time to plan. Clearly, not as many deals are happening now but that will not last forever. For those with processes or a playbook, which has been limping along, it’s time to do some self-reflection. What has worked? What hasn’t? What have you successfully done in the past that you have no confidence you could pull off again? How much luck did you experience in your last deal around critical events that “saved your bacon?” It’s important to be honest about this last point. Just because the cards fell in your favor once does not mean it will happen again. 

On the flip side, for those of you out there with little to no deal experience who might have been told or sense that deals will be part of your organization’s growth strategy take note. There is nothing worse than being caught flat-footed and trying to invent processes, governance and execution during the deal. It can be done, but the odds are not in your favor that you will have near flawless execution. 

This is not to say that ever deal is difficult or will be disastrous, but a plan helps you pivot quickly, when needed. And trust me, you will need it. I have yet to see a deal, in my 150+ deals, that didn’t take unexpected turns and/or produced unintended consequences. Remember, people are emotional, and at times, illogical. You must meet them on their level in order to “reach” them and reduce anxiety.

“Always have a plan and believe in it. Nothing happens by accident.” ― Chuck Knox, former NFL head coach

A thorough plan that has been scrutinized and has contemplated multiple scenarios is a must. It is a much better to prepare, with the luxury of time, then the alternative. Do not leave it to chance. Think clearly and deliberately.

There are significant implications to not having a vetted and thorough plan. One such example is communication. You show me an acquiring organization that underestimates the importance of employee communication, and I will show you a business that is distracted and a working environment that is completely dissatisfied, concerned and unfocused on the task(s) at hand. You only have one shot to get this right. You cannot put the genie back in the bottle.

“A goal without a plan is just a wish.” ― Antoine de Saint-Exupéry, writer and pioneering aviator

Wishing upon a star is so 20th Century. Today, you need predictability. You need to approach your deals in an analytical manner while considering the human nature of people. There are times when you might be able to “strong arm” a deal across the finish line, but those are few and far between.

Why chance it when the odds are not in your favor? And don’t underestimate the complexities of a small deal. Sometimes they require just as much work.

“Plans are of little importance, but planning is essential.” ― Winston Churchill, former British Prime Minister

PLAYBOOK. PLAYBOOK. PLAYBOOK.

I cannot stress this enough. Serial acquirers and well-prepared organizations leave nothing to chance. A “Playbook” is a huge driver of success, stability and business partnership.

We all know that when things are going swimmingly, with people, HR is just doing their job in the eyes of the business. Not many “pats on the back” are handed out by the business to HR. 

However, when things go side-ways – look out! The business will be knocking on the CHRO’s door immediately grumbling. Whether the issue is the businesses or HR’s, it doesn’t matter. In the businesses’ eyes, if it is people-related, it is HRs to deal with. That is why a playbook, with business buy-in, is critical.

Playbooks can be simplistic or complex. It really depends on the organization, the complexity of the work and organizational deal governance. It is critical that a playbook contemplates and defines:

1.      Structure & Governance

2.      Preferred Integration Approach

3.      Major Activities List

4.      Key HR M&A Tools

5.      Culture, Change Management & Communications Strategies

On top of that, you need to consider the role each above plays in the various stages of a deal. Different components will play different roles based upon where an organization is within the deal process.

I have helped to create numerous playbooks in my career and have yet to hear someone say, “Man, that was a waste of time” once they are in the throes of a deal. This is especially critical if your resources are spread thin and HR needs to stay on top of their day jobs. Most organizations, unless they are serial acquirers, do not have the luxury of dedicating resources full-time to a deal. This can be problematic because, often times, deal success has direct impacts to the organization’s go-forward strategy and success and the pressure to “get things right” can be significant.

“Never look back unless you are planning to go that way.” ― Henry David Thoreau, essayist and poet

No one knows what the future holds, especially in the business arena. However, the past is the past. Organizations must keep a steady focus on the future, especially those that are looking to grow inorganically through deals.

Certainly, it would be foolish to not look to the past for lessons learned. But stop there. Assess the stated strategy of your organization and plan your HR M&A approach in support of where the organization is going, not where it came from.

It is hard to predict what the future holds. Unanticipated challenges are easier if you have a comprehensive plan and organizational buy-in around your approach. So, the time is now. 

Prepare for the future. It will be here before you know it.

scott@peoplefusionhr.com

www.peoplefusionhr.com

Until next time - Stay strong, stay focused, stay sane and stay the course…