For successful companies, change processes are a necessity, yet they remain a challenge time and again. Business succession typically represents a particularly profound turning point, especially when it involves the sale of the company rather than succession within the family. A new owner is less deeply rooted in the company’s values and traditions and usually brings new ideas that require changes to structures and work processes. To ensure that their integration into the company goes smoothly, there are a few points to keep in mind.
Familiarize Yourself with Existing Structures
Before implementing changes, the buyer should first try to understand the existing structures and processes. On the one hand, this demonstrates their interest in the work the staff has done so far, as well as in the company culture and its values. On the other hand, this knowledge helps in responding to resistance from employees, and the benefits of the changes can be better highlighted and argued more persuasively. Being informed about existing processes is also beneficial for future interactions with customers and suppliers. This helps avoid offending and losing important business partners.
Leveraging Employees’ Expertise
When a company is acquired, the employees’ knowledge is also transferred to the new owner. In many areas, this know-how is the company’s true capital; nevertheless, it is often overlooked during change processes. This is a mistake. The buyer has paid for this knowledge and should use it to implement planned changes, because no one knows the company better than long-term employees. At the same time, involving employees in this way demonstrates confidence in the workforce’s potential. The changes no longer appear to be imposed from above but rather developed and implemented collaboratively.
Use “Hour Zero” to implement the integration,…
After a company acquisition, once everything is finalized and the new owner takes over, “Hour Zero” begins. This is typically when the workforce is most receptive to change, and the new owner has the chance to win over the employees—even if there were strong reservations about the sale beforehand. To do so, the new owner should outline the strategy and goals and explain how they will be achieved. Any restructuring or changes to work processes are presented. If these aren’t communicated clearly, the tide can turn against the new owner within the first few days or weeks. The new owner should also avoid raising false expectations. If disappointment sets in quickly, respect and credibility are lost.
…but change management still requires patience
As a new company owner, one would ideally like the new structures and processes to function perfectly as early as the very next day. But they don’t—even when employees have overcome their initial resistance and are open to the planned changes, both rationally and emotionally. Old processes are deeply ingrained and provide a sense of security. They cannot be turned off at the push of a button or simply reprogrammed. Patience is required here. First comes a phase of trial and error and learning. Mistakes must be forgiven during this time. Once employees have expanded their skills and knowledge accordingly, they recognize the benefits of the changes and, at the conclusion of the change management process, integrate the new structures and processes naturally into their daily work (Richard K. Streich’s 7-phase model).
