Walter E. Johnson (walter@wejohnson.org) is Senior Advisor at Compliance Strategists LLC specializing in compliance, ethics, risk and governance.
Innovation across industries continues to rapidly drive change. To synergize complementary strengths and weaknesses, to eliminate competition and ensure growth, to facilitate easier entries into new markets, and meet the expectations of shareholders and/or demands of consumers, corporations may decide to merge with a similar organization or acquire a different organization.[1]
Mergers and acquisitions (M&A) have been steadily increasing for years. When one industry settles, another industry is in its peak. This trend is not limited to the United States; it’s occurring in other countries as well. In Japan, M&As increased from 190 to 340 deals annually in less than a decade.[2] Healthcare, federal contracting, finance, and automotive industries have seen their share of M&A peaks and valleys. In the automotive industry, the past decade included Volkswagen AG and Porsche SE Holding (2012) and Renault–Nissan–Mitsubishi Alliance (2017).[3] M&As will increase as industry participants advance their market position in the new mobility landscape.[4]
When experiencing an M&A, consider the following CRUISE method:
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C – Calm urgency: Everyone’s reaction to change is on display. Remain calm and perform duties with urgency.
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R – Recognize reality and forecast future: This new reality has several variables and focus should remain on those under your control.
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U – Update personal data: Update your profile, elevator speech, résumé, references, etc.
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I – Involvement: Demonstrate your commitment by participating in transition activities. At minimum, build relationships and support colleagues that can be your sponsor during the transition.
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S – SWOT: Analyze your personal strengths, weaknesses, opportunities, and threats. [5] Petition your inner circle for help. [6]
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E – Employee empathy: As mentioned, everyone’s reaction is different. The impact may be perceived as minimal to some and detrimental to others. The uncertainty may change the cultural landscape. Demonstrate empathy to all employees.
