Upfront: Return of the Mega-Merger

Will the current crop of big mergers be any more successful than those of yesteryear -- 50 percent of which failed to deliver the anticipated results? They won't fare better if management teams continue to lag in emphasizing workforce performance.

Many executives ignore the potential for drops in productivity after a merger, but problems are common among employees who survive layoffs only to face a world of new processes, systems and expectations, warns Seth Leibler, Ph.D., CEO of The Center for Effective Performance Inc. in Atlanta. Most mergers' value creation hinges on cost savings derived from job cuts. However, Leibler notes that "executives overlook those who remain and who are now accountable for driving results in the new organization." Sagging employee morale can derail corporate plans. "Executives need to think about rewards and consequences for those who perform -- and those who do not," he says.

In some cases, the skills of inherited employees may not match what the new company requires. "As jobs change, new processes are introduced and higher-level, more complex skills are required," Leibler says. Communication challenges may construct additional performance barriers. "Often it's as simple and inexpensive as making the new expectations explicit," he says.

Leibler recommends five actions for managers who need to decrease the chance that employee problems will spoil a merger:

1. Determine whether current workloads leave employees the time to take on additional volume or expanded roles and responsibilities.

2. Assess how employees will perceive functional or job-specific changes caused by the merger.

3. Ensure that affected employees have the skills and knowledge needed to execute the new processes.

4. Verify that the organization has captured vital information from all employees who might leave as a result of the merger.

5. Make sure the company has in place the necessary metrics and systems for evaluating job performance of critical employees and functional areas.