With economic recovery on the horizon and confidence levels rising, executives are looking for opportunities to increase shareholder value.  Cases in point: Cingular’s bid for AT&T Wireless and J.P. Morgan Chase’s acquisition of Bank One.  However, historically, 83% of mergers fail to produce any benefits for shareholders and over 50% actually destroy value.  Can companies merge successfully and achieve the anticipated financial objectives?
 
“Yes,” says Dr. Seth Leibler, CEO of CEP, The Center for Effective Performance.  “With any strategic initiative, the performance (or underperformance) of the workforce is the key to success or failure.  In most cases, the resulting performance problems are predictable; and if they’re predictable, they’re preventable.” 
 
Regardless of the reasons for merging, whether it's to combine forces with competitors to gain marketshare or to add a new vertical category to an existing business, jobs will change for the employees of the new organization.  Most executives fail to consider the employees and the jobs they are now expected to do.  “When organizations merge, jobs change,” says Leibler.  “Employees are often expected to perform tasks that require skills they don’t have and are forced to learn by trial and error.  This leads to motivational problems and turnover that deplete the value of the merger.”
 
To integrate an acquisition successfully and avoid these problems, Leibler strongly recommends that you train your managers before the merger to identify and solve performance problems before they snowball out of control.  “Executives often assume that managers have the skill to solve people and performance problems, but it is usually not the case.  Managers must be taught the techniques and methods to use to evaluate and manage both people and performance.” 
 
Leibler adds that your workforce needs to be trained as well.  “People want to do a good job and produce quality work.  But they need to have the required skills and an understanding of what is expected.” 
 
“Criterion-Referenced Instruction (CRI) is the only means to guarantee your workforce has both the skills and will to perform,” says Leibler.”  Based on human behavior, this renowned approach to addressing all types of organizational performance issues, from skill acquisition to systematically identifying and fixing motivational and other obstacles, is proven to give employees the ability to perform to expectations. 

“In applying CRI, you tell learners what is expected, you teach them how to do what the job requires, and then they practice until they demonstrate the ability to perform to management expectations,” adds Leibler.  "It sounds basic, but most training does not provide the skills required for actual performance back on the job.”
 
“If your workforce is equipped with the skills to perform and managers have the tools to pinpoint and resolve performance problems, your organization is better positioned to weather the sea of change that accompanies a merger or critical initiative and to achieve your anticipated financial results,” concludes Leibler.  "You can make mergers financially beneficial."
 
CEP can turn an aquisition or merger into a financially beneficial initiative. Call Paula Alsher at 800.558.4237.