According to a recent report by HR consultancy, Mercer, global mergers and acquisition activity in 2015 increased by 42 per cent year-on-year representing the strongest year for M&A on record. While economic intricacies are usually the focus of any deal, HR’s involvement is vital to any new partnership’s eventual success.
We should not underestimate the fact that human capital is often what makes one organisation attractive to another in the first instance. However, businesses often fail to understand the importance of how they communicate with employees during times of change. While HR leaders must determine the quality, capability, fit and valuation of its new and existing human assets when two organisations become one, they must also manage corporate culture throughout the process.
The secret lies in communication, and successfully merging cultures can have the benefit of creating a new corporate identity which incorporates the best of each of the existing cultures while eliminating any less-desirable traits. Of course, merging organisations is much more straightforward if the existing brands share a common ethos and values.
This month APSCo took another global leap, expanding into Australia and New Zealand through a new merger with the Information Technology Contract & Recruitment Association (ITCRA). There are huge cultural similarities between ITCRA and APSCo. We may be on the other side of the globe to each other, but our stories are uncannily similar. Launched just a year apart, we share the same ethos and we represent the same quality standards. We even share members.
Like APSCo, ITCRA is serious about standards. It prides itself on recognising, supporting and promoting excellence in the ICT contracting and recruitment market and affiliation with the organisation is recognised by clients, candidates and regulators as a ‘badge of quality’.
None of this will change when ITCRA rebrands as APSCo Australia and APSCo New Zealand early next year. Its CEO, Julie Mills, will continue in the same role to provide the fantastic service that ITCRA members are accustomed to receiving. However, under the APSCo Global umbrella, consultancies will also be able to take advantage of additional benefits such as training and development, enhanced members meetings and greater online resources. We’re not trying to reinvent the wheel. ITCRA and APSCo work well together because we share common values – but together we can be greater than the sum of our parts.
Handled correctly, new mergers, particularly those across borders, can enable organisations to increase their reach, share of voice and international clout. By communicating these benefits, HR teams can ensure that great culture is retained for everyone’s benefit.