LinkedIn + Microsoft: business NOT as usual

By now you’ve probably heard the news that Microsoft recently agreed to acquire LinkedIn for a whopping $26.2 billion dollars. LinkedIn CEO – Jeff Weiner – sent an email to all employees assuring them that “little is expected to change.” And that everyone would retain their titles and managers.

So the gist of the email was basically – business as usual. Are you kidding me! As a Change Agent, I’ve been part of several mergers and acquisitions and it’s never business as usual. Lofty promise.

Mergers and acquisitions – regardless if little is “expected” to change – are not easy. In fact – according to a KPMG study – 83% of mergers and acquisitions failed to boost shareholder returns. Robert Sher suggests this is because of mismanagement of risk, price, strategy, cultures, or management capacity.

Umm…sorry, Jeff, but this type of organizational change is not business as usual.

Any type of change – like a change of ownership – creates a ripple effect regardless of how the company is structured. Sure – LinkedIn is going to remain an independent company under the Microsoft umbrella similar to how YouTube is under Google’s management. But with any change of ownership comes new expectations, new goals, culture and process changes and potential changes in strategy.

That doesn’t sound like business as usual to me…and it sounds like organizational development and change management support is definitely needed for a smooth transition.

This is not to say that I think LinkedIn employees should fear for their jobs – but they do have a loss to grieve and new way of being to adapt to working within – big transition. However – I do think Jeff Weiner should consider some basics behind change management to ensure they’re one of the 17% who are successful.

Ok, Jeff – here is what you need to know about how to achieve success through people:

Prepare for change.

Having a detailed change management plan in place is key. Change is hard. Everyone deals with it differently. Some people avoid it. Some take baby steps. Some confront it. Some dive in head first and change everything. A merger or acquisition requires new behaviors and ways of doing things. People adapt to change at a different pace. People internalize change in different ways. Change is emotional. Getting your people to commit to change is not a one size fits all off the shelf solution. Don’t make it one!

Communication is king.

Timely communication explaining the process and impacts, how it affects the teams of people and customers, and communicating what everyone needs to do to succeed — all while keeping open dialogues in all directions — is imperative to a successful transition. If you fail to do this – people talk, make assumptions, engagement declines, productivity declines, and service suffers greatly. You end up with confused and unhappy employees and confused and unhappy customers.

The merging of 2 cultures.

Organizational cultures are like snowflakes, no two are the same. It’s not about right and wrong or what is and what was. It’s about merging the 2 cultures – not just the 2 brands – and finding what works best moving forward. It’s about allowing people to grieve the loss of the old way of doing things and have a say in the new world. Ask for feedback and act on feedback. Bringing 2 cultures together is a journey. A journey your people, and even customers, need to be involved in from day one.

Processes, processes, processes.

Process, well, this is always an area for improvement from a customer perspective. You need to conduct a detailed process inventory and impact analysis. Identify which processes you need in place, when, and where. Look at which work well, which need improvement, and which make sense to be integrated. Perhaps one entity has a better process then the other? Perhaps both need to be streamlined and refined? Maybe one current technology system will meet your needs, or, perhaps you may need to build or buy a new solution. Either way – assess all processes and impacts that can hinder performance and the customer experience. Remain flexible.

Train your people on the new processes.

This is a huge pet peeve as a customer. Your people need training on the new processes and technology. During a merger and acquisition people often have fear of incompetence. They assume their world is being turned upside down. They are afraid their job may become obsolete or they may not have the skills to perform successfully in the new environment. Your people need to be told what the new process is, why it needs to change, and how it will help make their job easier – and how it will help to better service the customer.

Leaders should lead, not manage.

Take responsibility. Be accountable. There are going to be issues and problems. And that’s OK. Leaders generate enthusiasm, demonstrate how things should be done in the new world, and fix breakdowns. They develop the path for everyone to follow to ensure the organization moves forward – together. For more on this, see our checklist: How to be a Great Leader!

Evaluate and course correct.

Learn and adapt. High-performing organizations remain successful by measuring results, evaluating activities or projects, and creating clear expectations with regard to the desired performance. This is especially important during a merger or acquisition. Continuous improvement and innovation is imperative to success, and can only occur through evaluation and a culture of continuous learning. Have a distinctive strategy and processes that are continuously measured and evaluated. You may not get it right the first time. Don’t fear failure. It means you’re trying new things and learning.

The moral of the story is this. I don’t care if your job title and manager stays the same. When you are acquired – things change. I get it LinkedIn and Microsoft, you’re trying to prevent your employees from jumping ship, but don’t pay your employees lip service. Be honest, transparent, and communicate often. Because things will change – and if your people are not prepared then their trust in you could be broken – and your customers, and your brand, will suffer.

About Scott Span, MSOD: is CEO & Lead Consultant of Tolero Solutions – an Organizational Effectiveness & Strategy firm. He helps clients in achieving success through people, creating organizations that are more responsive, productive and profitable. Organizations where people enjoy working and customers enjoy doing business.

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