On Corporate Mergers and Restructuring
When I have those weekly meetings with CEOs..
“Sorry I am running late, will be there in five...’’ a quick short and precise call from a client with whom I was scheduled for a business lunch with last week. This was a surprising call. The CEO of a major corporate giant was running late? This was unusual. So I was eager to find out what caused the delay.
Ten minutes later, after the ‘five,’ he walks in briskly. The server shows him to my table and smiles cheerfully as she pulls his seat. I read her name tag. It says ‘Pam.’ Her smile, as though she could eat a banana sideways...she looks happy. I wonder if she is really happy working here, or is that smile simply cosmetic. Industry appropriate......
Mark interrupts my thoughts with his hand shoved in my face... “Sorry I am late...’’ he repeats with a firm handshake and returning a smile to her. ‘’We are acquiring some new markets in the east and merging with the Chinese and they are very demanding’’ he retorts while scanning through the voluminous menu spread before him. “We have to restructure all the departments...a bottle of sparkling water please, room temperature.’’ He says to Pam with a nod.
“I just came from a meeting with the vice president of a conglomerate in the east. He is favorable to our merger but insisting on lots of structural changes on our side. Honestly, I feel like we are ceding more ground than we stand to gain.’’ He says.
“Is that why you are late?’’ I ask with a sneer. Then, a straight face.
“Yes Arthur. I have been under a lot of stress. The board has taken some hard line positions and is keen on closing this deal before the year is ended. Some tough choices have to be made. Suzie from the copier, we are letting her go too...”
“Suzie? Smiling cheerful Suzie?’’ I intervene. “The guys in finance are too many. We are letting some of the senior management go. We have some hard working young energetic folks in junior management who are doing a great job. They are eager to take on more responsibilities so we have them eyeing those positions... yes cheerful Suzie.’’ he concludes crushing lettuce between his jaws.
“So if the plan is in place already, what then is stressing you?” I ask with a raised eyebrow.
“Well, over time, at the company, we have grown together for a long time. When I joined them ten years ago, I found employees who had been there for over thirty years. Their diligence, passion and creativity has seen them rise through the ranks to senior management. It sort of feels like a family. Now that their hard work has led us to this growth and now eyeing new markets, it is sad that we have to let them go. Corporate restructuring to cut operational cost they say.” He retorts.
“From how you feel and the bottlenecks you face right now, sounds like you would do better with Corporate Cognitive Restructuring.” I suggest.
“Yes. I think so. No. wait. Corporate Cognitive Restructuring what is that?” He asks with squinted eyes.
“Mark?’’ I say, “You sound to me as though the whole weight of this merger is borne heavily on you alone. As the CEO, the success of this merger and successful entry into the markets in the east is a significant milestone for you. The pressure to make this transition with ‘minimal casualties’ is immense. The board expects you to get this deal in on the winning side while the Chinese want to shake on it in their favor too. You are worried about the cultural dynamics, employee attitudes, listing on the Chinese Stock Exchange, unpredictable currency exchange rates, going global. All very valid concerns. I will not ask about your sleep hygiene for the past two weeks because your eyes already responded to my concerns. You worry, as though you make this transition alone. I wonder how many of your employees are apprehensive too...”
“Everyone at the office is on edge.” He interrupts me. “Mzee, my driver, you know him. You met when he returned your coat after I misidentified it for mine from the party at the ambassador’s residence.”
“Yes I know Mzee,” I agree. “Charming old timer, he stills works with you?” I ask.
“Yes he does, funny you ask that.” He says. “So Mzee on our way here asks me, ‘Mkubwa, vile ninasikia hao wachina wanakuja kufanya kazi na sisi, wazee kama mimi tutafutwa kazi?’ “Sir, now that I hear the Chinese are coming to work with us, will old men like me be laid off...?” He goes on to translate.
“Mark, I speak Swahili.” I riposte. “You see how serious the situation is? Now I have to even worry about my own safety on the road” he quips.
“The kind of restructuring I am proposing to you and for your team is both personal and corporate. Crucial at this sensitive stage for you and your team. It will be helpful for management to have an awareness of and remain sensitive to the needs of the different teams. Each member needs to feel involved and valued in this process. Each decision needs to reflect the input of others. When a decision is made contrary to the opinion of the majority, in the best interest of the organization, this needs to be explained respectfully and support sought in that direction. Mergers do not always necessitate layoffs. A Value Skill audit of the human resource will reveal dormant skills whose coupling with passion in line with the organization’s goals, would be more valuable in some departments than in others.
Supervisors who create a balance between how their teams feel while they work and how they feel about the work achieve greater results. Their employees spend less hours on sick offs and limited industrial actions. Comparatively, supervisors who manage their teams as machines whose only use is production, achieve the converse."
"Talk to your people.." I go on, "Share your thoughts. Encourage ideas. You will be surprised to hear what insights the security and cleaning staff have.” I conclude with a straight face.
“Do you know! It has never occurred to me to engage them! Yet the support staff are an important cog in the function of the whole system. This has been very helpful. I feel much lighter now compared to what I just ate!’’ he says within bouts of laughter.
I nod.
“I know you have a tight schedule, but I have to ask this, could you help with the restructuring?” He continues to ask. “I think the corporation will make good use of your insight and support. We need all the support we can get in this sensitive period. We have another board meeting on Thursday, I will introduce your ideas to them and see what they think. If it is okay with you.” He adds while signing the cheque.
“Same time next week? How long will you be in Birmingham for? He asks. “Yes but a Skype check in. A fortnight. Hopefully less if the Health and Professional Council gives a nod early.” I respond. “Okay good. The board will be ready for your presentation immediately you are back. Say hallo to the mayor of London if you get to meet. He is a personal friend.” Mark says as we walk out to the cars each of us waving greetings to the other’s driver. The doors are safely shut, and we are driven in opposite directions.
Some traffic begins to build up. “Quick response to the emails and a call to my assistant who should be at the airport by now and then I can snooze. I will prepare my presentation in-flight. Mark will be fine.” I say to myself as I drift off...
