FREE online courses on Mergers & Acquisitions - Chapter 6 - Managing Resistance

 

The failure to manage resistance is a major reason for failed mergers. Resistance is natural and not necessarily indicative of something wrong. However, it cannot be ignored. Four important tools for managing resistance are:

 

Communicate

 

As we just indicated, you have to make sure people know what is going on if you expect to minimize resistance. Rumors should not be the main form of communication. The following quote from a middle level manager at a meeting with executive management says it all:

 

"How can I tell my people what needs to be done to integrate the two companies, when I have heard nothing about what is going on."

 

Training

 

As we just noted, people must possess the necessary skills to manage PMI. Investing in people through training can help achieve "buy-in" and thus, lower resistance.

 

Involvement

 

Resistance can be reduced by including people in the decision making process. Active engagement can also help identify problem areas.

 

Alignment

 

One way to buffer against resistance is to align yourself with those people who have accepted the merger. Ultimately, it will be the non-resistors who bring about the integration. Do not waste excessive resources on detractors; they will never come around.