Strategy 1: Choose scientific integration mode and process.
In the whole M&A process, the integration of human resources plays an important role, and the efforts of human resources run through. The integration of human resources has a strong practicality, and the specific situation of mergers and acquisitions needs to be considered. Therefore, it is necessary to choose a scientific integration mode and process to control before integration.
In the due diligence stage, we mainly focus on strategic assessment, human resource liabilities and collaborative assessment, and assist in negotiations. In the preparation and integration stage, it is mainly to establish the project office, make the 100 day plan and make the improvement plan.
Strategy 2: Start as soon as possible, make a careful integration plan and introduce professional intermediaries.
It is necessary to set up a special integration team to study the information system, human resources, operation status, customer service and other important businesses of the enterprise. In particular, the acquirer should hire professional intermediaries to study the culture of the target enterprise and make plans in advance, including cultural integration strategies, communication strategies, and screening of key personnel.
In the words of Liu Chuanzhi, the head of Lenovo, this is a gamble with both benefits and risks. From the "intensive bombing" of financial media before the integration to the careful and gradual integration, from Lenovo's adult ceremony to Lenovo's performance growth report card in the first quarter of fiscal year 2007 13%, it proves that the previous pessimistic argument of "snake swallowing elephant" is only alarmist. Yang, Chairman of the Board of Directors of Lenovo Group, said that Lenovo has successfully completed the transition phase of integration with IBM's personal computer department. "This merger can be regarded as a successful merger."
Undoubtedly, this is closely related to Lenovo's high-level conscious attention to human resources issues from the beginning. In 2003, IBM formally hired Merrill Lynch to find buyers around the world. Around June 5438+ 10, 2003, Merrill Lynch listed Lenovo as the first target acquirer and began to arrange interviews between the two parties.
At the end of 2003, Lenovo began to conduct detailed due diligence and hired McKinsey as a consultant. Fully understand IBM's PC business and the possibility of integration After the Spring Festival in 2004, Goldman Sachs was hired as a financial adviser. The lineup of intermediaries in this transaction is unprecedented. After a long negotiation process, Lenovo and IBM set up a "Joint Leading Group" in the formal negotiation stage, led by senior leaders of both sides, including investment banks and public relations consultants. On February 8, 2004, Lenovo announced the acquisition of IBM's global pc business. On May 1 day, 2005, the global business handover was completed. In March 2006, global organization integration was realized ahead of schedule.
Strategy 3: Establish an integrated leadership team, appoint appropriate supervisors and retain key talents.
Cisco CEO Chambers once said: "If you want to get a 5- 10 return from your company's purchase, obviously it won't come from today's existing products. What you need to do is to retain those who can create this growth. " "We are not so much buying companies as we are buying talents." If M&A leads to the loss of a large number of employees, then the enterprise we acquired is no different from an empty shell and has lost the source of creating value.
It can be seen from the 5P model of human resource management that how to "retain" talents is a very important link. Only by ensuring that the "psychological contract" of employees is not broken can the company make employees willing to stay and devote themselves to the development of the enterprise, because they believe that the enterprise can understand and meet their needs and wishes.
The concept of psychological contract of M&A human resource integration was put forward by the famous American management psychologist E.H.Schein. Psychological contract is a kind of cooperation between individual dedication and organizational desire, and the organization will provide the expected benefits for the individual. Although this is not a tangible contract, its role is more important than a tangible contract.
Strategy 4: Strengthen employee communication.
In the process of human resources integration, communication will play a vital strategic role. Many misunderstandings and confrontations in integration are caused by poor communication. In order to avoid these situations, M&A enterprises should establish various forms of communication channels to ensure the smooth flow of all kinds of information in formal channels, so that employees can clearly understand M&A's motives, purposes and functions, understand the latest progress, and identify their future goals, so as to minimize opportunistic behaviors such as "moral hazard" and "adverse selection" caused by incomplete and asymmetric information distribution in the process of M&A, reduce friction costs and increase friction costs.
Case Study: Cisco -SWAT Team with Attention to Details+"Private Folders"
Cisco is an active member of M&A activities and has successfully made several horizontal mergers and acquisitions. After many reflections, the final conclusion is that communication determines success or failure. Immediately after the merger, Cisco will issue a private folder to the employees of the merged enterprise, which contains the basic information of the new enterprise owner, the telephone number and e-mail address of Cisco's senior manager, and an 8-page chart to compare the differences in vacation, retirement, insurance and other benefits between the two enterprises.
Strategy 5: Cultural integration corrects the spiritual pursuit of * * *.
The way of manpower is culture-oriented. The human resources department has its own responsibilities in the integration stage. In addition to project management, organizational structure and employee placement, evaluation and selection of leaders, adjustment of salary and welfare system and communication and exchange with employees, cultural integration is particularly important.
Culture is a multi-level thing, and the culture of an enterprise is contained in the collective value system, beliefs, codes of conduct, ideals, superstitions and religious ceremonies. They are the source of encouraging people to produce benefits and effects. At the core value of the center of the sphere, its gravity is infinite. Cultural differences are the main reasons for the failure of mergers and acquisitions. We know that the biggest trouble in the merger of HP and Compaq is not technology, products or market, but the integration of company culture.
Case study: Lenovo-Who says elephants can't dance?
Guo Shina once said, Who says elephants can't dance? Culture plays an important role in it. Then only culture can make Lenovo dance with elephants.
After Lenovo acquired IBM's PC department, the top management of both sides formed a cultural integration team to discuss which excellent cultural genes are reflected in their respective successes, how to combine them into a stronger cultural foundation, and analyze what challenges such cultural adjustment will bring to employees of both sides and how to help employees complete behavioral changes. This mature integration concept helps Lenovo to absorb IBM's excellent management model more quickly and accelerate business integration.
The first stage of Lenovo integration came to an end with Ward's departure. Cultural compatibility is like a panacea, which makes Lenovo not suffer from "indigestion and brain drain" like many enterprises, but gradually move from cautious form merger to institutional and deep cultural integration. If the first stage of integration and association is chewing, then from the second stage, it is the stage of digestion and absorption.
The airborne succession of Amelio, the former vice president of Dell, means that Dell's wolf culture and IBM's master culture will collide in Lenovo, which has a strong color of state-owned enterprises.
The integration of M&A's human resources led to the collision of these three cultures, which gave birth to the core values of new Lenovo: frankness, respect and compromise.
Strategy 6: Pay incentives should be "tailored" and focus on key points.
In the process of M&A human resources integration, the standardization of assessment and incentive mechanism is one of the difficulties. To successfully integrate the salary system, it is particularly important to respect the wishes and needs of employees. The completion of the integration project of salary incentive system ensures the smooth integration of human resources in the whole M&A activity.
Case study: Lenovo-communication+discussion makes the integration of salary incentives soft landing.
Salary incentive system is the embodiment of corporate culture and values. Lenovo must first carry out cultural integration, but the carrier of cultural integration is employees. The difference in salary system of the same job nature will definitely affect the integration of the new Lenovo corporate culture. When the warmth of the integration period began to fade, profit once again became an important business goal, and performance became the most important assessment index. The new Lenovo's performance appraisal basically inherits the original Lenovo's appraisal system, which is called 3P, priority, performance and salary. Salary incentive draws lessons from some salary incentive mechanisms of IBM and forms a new salary incentive model, as shown in Figure 3. In addition, New Lenovo has also implemented employee stock ownership plan and enterprise annuity plan. Enterprise annuity plan is a bright spot. On July 5, 2006, Lenovo announced the implementation of the enterprise annuity plan, becoming the first enterprise to file with the Ministry of Labor and Social Security.
It is true that "willing to pay" is a good choice. But it is more dangerous to keep people by money alone. For employees, a good leader, a good working atmosphere, working conditions and even development prospects are all important factors to retain people. Diversified career development plans and other incentive mechanisms (training, tuition reimbursement, etc. ) enrich the way of talent retention and make "willingness" possible. The low turnover rate of Lenovo's core employees since the integration is undoubtedly encouraging, which is the return of these measures.