“The WORKFORCE is the number one RISK to growth”. This bold assertion jumped out at me from the 2022 Global Mid-Year Industry trends report by PwC*. It was focused on mergers and acquisitions – but relevant for a leader driving ANY new strategy today.
PwC pointed to risk factors we know all too well: wage inflation, the “great resignation, skills shortages, an increased spotlight on diversity and inclusion.
But the IRONY they pointed out was this:
DESPITE the fact getting workforce issues right can make or break the success of a merger or acquisition or joint venture —
-“ The impact of the WORKFORCE on merger/acquisition deals is often OVERLOOKED in the due diligence…”
Why?
o Is it because the excitement and momentum (and egos) involved in shaping a new M&A deal mean leaders move too fast?
o Or that financing and “synergies” and portfolio /market fit” steal the show?
o Or is it because these leaders forget that the “deal” is actually PEOPLE.
The truth is this: Even a GREAT strategy will FAIL if the PEOPLE are confused, skeptical, or not aligned.
In my work with CEOs and boards driving high-stakes strategy, this truth holds up whether you’re putting together a new M&A deal, pivoting your strategy, or placing a big bet on a new product or program.
To de-risk the strategy, you can proactively identify exactly WHO must take action to make this new strategy work and how you can support them. Make sure they are clear on why and that they are prepared and aligned to take action together. Be intentional about the culture you are creating – right from the start.
The PwC trends report went on to say:
“ As workforce strategy also plays an outsized role in post-deal integration, questions not often on top of the deal-making agenda become more important than ever:
– What is the right culture to cultivate?
– How do you drive better results in recruiting, retention and development?
– Do your compensation, benefits, flexibility and other programs create incremental motivation and harness workforce longevity?”
These and other questions about your PEOPLE are relevant to ask whether you are integrating two organizations – or strengthening your organization to take on the headwinds of 2023.
What do you think?
o Do YOU see leaders putting enough priority on the “people-side” of a new strategy?
o What issues do YOU see get overlooked most often when leaders are driving a new direction?
I look forward to hearing your thoughts.
All the best – Susan
P.S. If you are leading a new strategy, or getting an initiative back on track, check out our De-Risk System for Impact. It’s a practical way to anticipate the risks of your strategy and put a plan in place to address them. Happy to discuss how they might apply to your situation.
Your mission is too important. Don’t let it get derailed.
Susan Schramm, Founder, Go to Market Impact susan.schramm@gotomarketimpact.com
