Find change drivers
Winner could have been overwhelmed with all of the changes swirling around his company after the acquisition. But when the deal closed, he locked his focus on the search for a new management team.
While some acquisitions veer toward a win-lose situation — where the acquirer stays in power and the acquired company loses people — Winner implemented Liberty’s 1+1=3 philosophy.
“That incorporates trying to pick the very strongest and the very best talent from the new combined organization,” he says. “It’s easy for you to immediately go back to people you’re familiar with and want to pick them and not challenge yourself to really consider, ‘OK, what are the strengths of some of the other people coming on board?’”
You have to lay aside your background and look at each potential executive objectively. This process should start before the acquisition is even finalized.
“One of the key areas you evaluate prior to closing any acquisition is the quality and depth of the management team of the acquired organization, including their ability to assimilate into the new combined organization. That would include employees that may be ready to step into a larger more significant management role,” he says. “You would compare their strengths and weaknesses to those of your current management group.”
In addition to spending time with the candidates when possible, Winner scrutinized their past performance reviews to find their strengths.
Specifically, he suggests keeping your eyes open for signs of their ability to adapt and drive change, traits that a newly merged company will require. Examine the demands of each role to identify additional characteristics.
“For each role, you should identify what core competencies are critical for success in that role, especially as you integrate companies together,” he says. “You then evaluate the individuals’ strengths and weaknesses in those core competencies to determine whether or not you believe they have the necessary skill set to achieve the objectives and goals for that role.”
To gauge those competencies during the interview, ask the candidates for examples of the traits in action.
As you zoom out to consider how the team will mesh as a whole, opt for diversity.
“By picking people from different parts [of the organizations], what you do is you bring different philosophies,” he says. “You bring different backgrounds and different mindsets, which allow you to then, over time, challenge each other.”
