A merger, acquisition or divestiture is an extremely complicated undertaking — and no component is more important than managing the complex series of workstreams and milestones necessary to integrate or separate organizations.
When it comes to human capital-related issues during a deal, it’s vital to focus on two key areas: First, the many aspects of integration or separation need to be looked after through different workstreams. Second, the progress of various workstreams needs to be tracked consistently and in a coordinated way. This is where a project management office comes in. The creation of a central office provides a clear route to raise issues and escalate within each workstream.
“The need to approach this transformational work properly really doesn't change whether a deal involves 100 employees or 10,000 employees,” says Alexander Miller, associate partner in Aon’s Human Capital Solutions practice, who specializes in human capital M&A deals. “While it’s a matter of scale, issues around benefits, compensation programs and how to communicate changes to employees, for example, always exist.”