"Mergers and acquisitions (M&A) continue as the primary means of affecting speedy and substantive corporate growth, yet several studies indicate that more than half of all M&A deals fail to meet management's strategic, operational and financial objectives." (Clemente & Greenspan, 2000, p. 1) How can managers involved in a professional services merger limit the risk of a merger not meeting the expectations of the organization? There is usually ample time and consideration given to the financial aspects of the deal and there should be equal time and consideration given to the technology integration. One of the factors that needs special attention within any M&A situation is the human capital investment. This is particularly true within a professional services organization where the people are one of, if not the, most valued asset of the organization. How do you get people to stay in an organization that is undergoing great change, much less integrate with any new technology and procedures that will be implemented? One of the best answers to this question is to have a good technology training plan in place.

A training plan must be considered from the beginning of the merger process. "Managers tend to focus on the selection and negotiation phase of a merger or acquisition and do not give enough attention to managing the integration phase which follows the closure of the deal" (Empson, 2000, p. 3). Training is often the forgotten piece of the post-merger integration. A training plan should be in place before the deal is completed to facilitate the transition to any new technology as well as to calm employees' fears and concerns about change. Developing a good training plan is a long and involved process and cannot wait until the merger transaction is completed if it is to be successful.

The first step in creating a training plan is to conduct a needs assessment. What technology changes are taking place; what skills are needed to use this new technology? What is new to the end user? The next step of the needs assessment will be to look at individual end users and determine their current capabilities and what specific skills are needed. The needs assessment phase can be a bit tricky. It is important to reassure people that they are not being evaluated for the purpose of determining who will be let go, but that you are evaluating the existing skill sets so that everyone will have the tools that they will need to be successful in the new organization. This will reinforce the commitment to the success of both parties involved in the merger.

Based on the completion of the needs assessment, a set of learning objectives should be created. The objectives should be very specific and state the outcomes that will be achieved through training. For example, "At the end of the training program participants will be able to search and retrieve documents from the document management system." A set of specific skills should be outlined within the learning objectives.

Once you have completed the needs assessment and the learning objectives, it is time to build the training program. The program should be skill based and move the participant from abstract concept to concrete examples as quickly as possible. One of the most effective ways to accomplish this goal is a simple tell-show-do model. First you tell the participants what you are going to do, then you show them how to do it, and then you allow them to do it. Adult learning needs to be hands- on; learners need to use the software and see exactly how it works. To better ensure success, it is important for the user to spend an adequate amount of time practicing the new skills in a safe learning environment rather than a working environment. Also the ability to successfully use new skills helps to reduce stress and anxiety over the organizational change and shows the organization's commitment to an individual's success.

A portion of the training plan should be dedicated to an evaluation process of the training program. The evaluation should be based on the learning objectives and how well they where achieved. The most common evaluation is the end of class evaluation. Some very important data can be obtained by conducting a survey. In addition to the survey, the participant should also be required to successfully demonstrate new skills before returning to the work environment. This will help to ensure that participants are ready to function within the new organization.

With the training program now built, you will need to set your time lines for implementation. The training should take place as close to the date of the organizational change as possible. If you train too early, participants will not have a chance to use their new skills in a meaningful way, and performance will suffer. Training too late will cause stress and frustration on the part of new end users and can have a negative impact on employee satisfaction and retention. Once the training program is built, it is important to get buy-in from managers on the importance of training to the success of the merger. The best training plan in the world will not be successful if no time or resources are allocated to training. The ability for an organization to see the value and absorb the cost of training can be one of the most difficult parts of developing a successful training plan. This is why it is important to begin the development of a training program at the start of the M&A process, so that training issues can be addressed throughout the process rather than as an afterthought.

The success or failure of a merger can hinge on the investment made on the employees within the organization. Change can be very unsettling, and changes in technology within your work environment can be even more so. A training program can help to alleviate fears and aid in retention of key employees. In a recent survey of "quitters" by the Saratoga Institute, 41% of employees who recently left a position did so because training was not available. Training can be seen as a benefit to new employees who have not received any formal training in the past.

Training is often the forgotten piece or an afterthought of the M&A process. A successful training program can help the organization to adapt to the changes faster and help to retain the key people who will make the new organization a success.

References:

Clemente, M ; Greenspan, D. (2000) Empowering Human Resources in the Merger and Acquisition Process. Clemente, Greenspan & Co., Inc.

Empson, L. (2000) Merging Professional Service Firms, Business Strategy Review, Volume 11, Issue 2, pp 39-46.