You're Fired…But Help Us Anyway! GSK Acquisition Sends Executive Team Packing

GlaxoSmithKline, (GSK) a British drug maker, recently purchased the Human Genome Sciences (HGS) based in Rockville, MD.

Their first order of business - fire the executive team and most of the board of directors - seems they chose the often too typical and sometimes detrimental approach - we bought them so let’s get rid of their people and processes and do it our way. Why wouldn’t GSK take - what I think to be - the smart approach to an acquisition – let’s try and retain the intellectual capital (you know, the people who know stuff) of the company we purchased and explore how to best transition knowledge and merge our cultures and strategy?

Now to be fair, it’s not uncommon in M&A situations for the acquiring company to oust some high level executives and to begin consolidation of certain functions – though there is a way to approach it which can yield a higher rate of long term success.

“Leadership that's reliant on mergers and acquisitions is dangerous leadership.” - John Varley

For one thing, if you’re the acquiring company, don’t replace the entire executive team with your own people – this not only sends the wrong message to employees (which can have a direct negative impact on engagement and retention and thus performance), but you also risk losing leadership with a deep understanding of the culture and politics of the organization. For GSK to purchase HGS - I am sure there had to have been a lot of great work being accomplished by the staff employed by HGS.  These are folks who helped to shape the organizations success, which contributed to why GSK acquired the organization to begin with.

This type of action usually contributes to employee concern - most of the staff is probably hanging by the water cooler gossiping about what took place, updating their resume, or looking at new jobs fearing they'll be next.

It's a common result from something that could have been solved by a little thing called "communication and transition management."

The investment made by GSK (3.6 billion is no chump change) could very well endure months, if not years of work to recoup their investment.  Those executives who were fired couldn't possibly share all of the insider knowledge they possess in 1 month.  When September begins - there will be people, process, and strategy issues to deal with – some that could have been lessened or prevented.

Here is how you can avoid losing money in your acquisition and get the most out of your investment:

• Leadership…leadership of the acquiring organization needs to take time to build relationships with the leadership of the organization they’re purchasing. Those leaders know the culture, the politics, the unspoken rules and processes to get things done. They have built important trusted relationships with employees and stakeholders. Acquiring this knowledge takes more than a 30 day “stay on board and help” plan. If the new organization just swoops in and fires them all then they lose this important knowledge and those relationships.  Lack of knowledge transfer and relationship building can have a negative impact on the ease of transition and the overall success of the acquisition

• Communication…communication is imperative for a successful acquisition.  Clear communication strategies must be implemented inclusive of audience specific messaging. Content, vehicles, and frequencies must be identified for disseminating the right info to the right people at the right time. Leaders, employees, stakeholders and even vendors need to be made aware of what the acquisition means to them and how it impacts their jobs and roles and responsibilities. Once people start assuming the worst and making up their own versions of what is happening, it becomes very hard to reverse the trend. Without clear and targeted communication the rumor mill begins, and this impacts performance and profitability.

• Change and Transition…change is an inevitable part of a merger or acquisition – so is transition. You must have a plan – an actionable plan – in place to address both. Change is never easy. Change is a bumpy process. But why is change so hard? Change is hard because it is an emotional experience for most. An emotional experience, particularly an experience one often has little choice in being part of, creates resistance. Resistance is a natural emotion, though an emotion that can make change even harder.  However, resistance must be managed to harness that energy for positive change. Managing resistance requires focusing on not just change, but also transition. People go through the phases of transition at their own pace, not necessarily at the pace of others or the pace of an organization. People need to be supported in each phase. To ease the difficulties of the change process a focus on transition must run in parallel to a focus on change.

For an acquisition to be successful the organizations must truly merge and become high performing and enable meaningful change to improve their programs, services, products, and processes, to create new value for the organization's stakeholders.

"Plans are nothing; planning is everything." -Dwight D. Eisenhower

Moral of the story – when an acquisition is taking place – don’t take a “my way or the highway”  a “we’re bigger and better” or “thanks now get lost” approach. Take the time needed for leadership (old and new) to build relationships and understanding and create a smooth transition strategy for all involved.  This helps alleviate anxiety – allowing the staff to focus on what they do best and helping to create a new combined success.

About Scott Span, MSOD: is President of Tolero Solutions Organizational Development & Change Management firm.  He helps clients to facilitate sustainable growth by developing people and organizations to be more responsive, focused, productive and profitable.

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Culture is...

Part Three in a Summer Series on Creating a High Performing Organization: 

According to our marketing partner –Preactive Marketing – the phrase “culture is…” generates roughly 20 million global hits. This indicates it is quite a popular topic and that people are interested in what culture is - and why having a high performance one is important.

We’ll share our thoughts, though we also prefer to hear from you, so share your opinion!

Culture has different meanings to different people – so how would you finish the sentence – Culture is…

I would finish it something like this:

The shared assumptions, values and beliefs of a group of people. The way in which a group of people solves problems. - Geert Hofstede

Wise words from good ol Geert. The term culture has many meanings.  Whether written as a mission statement, spoken, or just understood, organizational culture describes and governs the ways a company’s leaders, employees, customers and stakeholders think, feel and act. Culture may be based on beliefs or spelled out in your mission statement.

Simply put - culture can be defined as, “the way work gets done around here. Organizations can’t excel for the long term if they don’t have a high performance culture – for more on the aspects of creating and maintaining a high performing culture - check out our whitepaper - What is a High Performance Culture? Creating a culture that supports long term growth and sustainability.

So…

Why is your organizational culture so important?

• Culture has a direct impact on employee performance, engagement and retention, and thus also a direct impact on innovation, customer satisfaction, and bottom line revenue.  For example, a culture of poor communication, lack of transparent and authentic leadership, abuse of power, and inflexible structures and processes is most likely a culture that would not be categorized as high performance or sustainable for the long term ; As this type of environment wouldn't make employees want to give their best and thus negatively impact the bottom line. 

• On the flip side, however, a positive culture can drive high performance and to create an environment of innovation and sustainability.  Organizations that have flexible processes and structures which help facilitate cross communication; encouraging people to share ideas and concerns with leadership usually excel. If people enjoy working for your organization then in most cases they give 100% engagement toward helping the company succeed.

• Culture is the identity of a company, and because of that, in some ways it becomes an identity of those who work there, as well. The people end up affecting the culture as much as the culture is affecting them. So while there are many definitions of organizational culture, all of them focus on the same points: collective experience, structures, beliefs, values, norms, and systems. These are learned and re-learned, passed on to new employees, and continues on as part of a company’s core identity.

A company’s culture says a lot about an organization and the direction they are headed - success or failure can hinge on culture. In the words of another organizational culture guru:

“The only thing of real importance that leaders do is to create and manage culture. If you do not manage culture, it manages you, and you may not even be aware of the extent to which this is happening.”  - Edgar Schein

So – culture is how “work gets done around here.”  To get work done well a  positive culture is needed for organizational, employee, and customer satisfaction and success. And who doesn't want to be success!

About Scott Span, MSOD: is President of Tolero Solutions Organizational Development & Change Management firm.  He helps clients to facilitate sustainable growth by developing people and organizations to be more responsive, focused, productive and profitable.

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Strategy is...

Part Two in a Summer Series on Creating a High Performing Organization: 

According to our marketing partner – Preactive Marketing – the phrase “strategy is…” generates roughly 13.6 million global hits. This indicates it is quite a popular topic and that people are interested in what a strategy should contain and why having one is important.

We’ll share our thoughts, though we also prefer to hear from you, so share your opinion!

Strategy has different meanings to different people – so how would you finish the sentence – Strategy is…

I would finish it something like this:

A strategy delineates a territory in which a company seeks to be unique.- Michael Porter

Wise words from Mr. Porter. Based on how most define strategy, the main reason for the existence of strategy is to achieve end goals. Organizations can’t succeed at getting where they want to go if they don’t have a plan of how to get there.

So…

Why is having a strategy important – why conduct strategic planning?

• A solid strategy is the cement and mortar in the foundation of any successful organization (that’s just one reason we offer our clients consulting services and training on this topic). You’ve got to have a plan – actionable processes.

A plan and process for how to:

• Handle change


• Manage for results


• Provide customer support


• Increase adaptability


• Promote communication


• Guide management decisions


• Remain future-oriented

The strategy is a supporting document that should contain actionable processes to help you answer important questions and achieve success – it should also outline what success looks like for your organization and how you measure that success. The strategy should assist in defining target markets, processes, structures, roles and responsibilities, and key customers and stakeholders.

• How does an organization develop a strategy?

Carefully – this shouldn’t be a rush job. The strategy is like the compass for your organization, it provides direction. Developing a strategy should include several components. A solid strategy should include a focus and analysis on both internal (history, politics, culture, structure) and external factors (competitors, customers, environment, laws and policy).  The organization should also include the development of the mission and vision of developing a strategy as well as targets, goals and initiatives, and measures of success.

So, in short, the strategic planning process should ask and answer the following questions (here is your cheat sheet!):

Where are we now?

• Internal/external  environmental assessment


• Customer and stakeholder identification

Where do we want to be?

• Mission


• Vision


• Targets


• Initiatives


• Objectives

How do we measure our progress?

• Performance measures and KPIs

How do we get there?

• Supporting strategies and initiatives


• Action plans


• Tracking system

You see…strategy is a facet of business that is imperative to succeeding.

“He who fails to plan is planning to fail.”  -Winston Churchill 

If you don’t know where you are going - how will you ever get there!

About Scott Span, MSOD: is President of Tolero Solutions Organizational Development & Change Management firm.  He helps clients to facilitate sustainable growth by developing people and organizations to be more responsive, focused, productive and profitable.

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Bullies on the Bus – Bullies in the Boardroom!

I’m sure you’ve seen it in the news, or at least heard about it - the bullied bus monitor. A bus monitor, 68 year old Karen Klein, was bombarded with a stream of profanity, insults, jeers and physical ridicule by multiple middle school kids as she rode the bus. I’ll spare the specifics as to the obscenely rude and hurtful remarks uttered by these kids – one, because it really angers me personally and professionally, and two, because you can find what they said in the cell phone video and in various news stories.

Though as an organization development practitioner and trained behavioral scientist, and someone who works with organizations and the people in them – this story did get me thinking, both about today’s youth and tomorrow’s leaders. You see they are one in the same - and that’s a bit concerning to me. Bullies on the bus can become bullies in the boardroom.

"The serial bully, who in my estimation accounts for about one person in thirty in society, is the single most important threat to the effectiveness of organisations, the profitability of industry, the performance of the economy, and the prosperity of society."

- Tim Field

Now, I’m not saying all kids are bullies, and I’m not saying all kids will grow up to be leaders (sorry to all those parents out there giving gold stars for every little thing, but c’mon, seriously). However, I am saying that as these bully kids grow up, and begin to enter into our larger and diversified global business world, they’re going to have to learn some tolerance, respect, and understanding for others– not to mention some self awareness - particularly those who want to become quality leaders!

So a bit of advice on why not to be a bully leader:

• People may do what you want if you bully them, they may be intimidated by you, though they will most likely never respect you. Without mutual respect, you usually can’t have an honest and trusting relationship – the type that is really productive both personally and professionally.

• Bullied people are usually not happy people. Unhappy people are usually not engaged people. Lower employee morale and lower employee engagement contribute to lower customer satisfaction and lower customer satisfaction contributes to decline in profits.

• Reputation is important for a quality leader. If you have a reputation for being a hardnosed, detailed orientated, assertive go-getter who still listens to others ideas and values and recognizes a job well done, that’s not necessarily a bad reputation. Actually,  some people thrive under that type of leadership. However, if you have a reputation for being a self serving, obnoxious, intolerant, tyrannical leader then most likely your bad reputation will precede you. If you have a bad reputation, good luck attracting the best and brightest talent to want to follow you and help you succeed.

Now, we all know bullies exist in the workplace, some may have been bullies on the bus and some may have become bullies as they escalated in their careers. Regardless, I’m sure you’ve most likely encountered one or more in your professional career.

So how do you deal with a workplace bully?

You deal with a workplace bully in much the same way you deal with anyone else who pushes your hot buttons – and for those details, I’ll direct you to our previous article: Are Your Buttons Getting Pushed? 3 Tips On What You Can Do.

 

Though in a nutshell:

• Breathe: Yes, I know we all do that anyway, but I mean really breathe. Just stop and take a few of those yoga style deep breathes.

• Communication: I know you’re probably thinking – well of course I communicate. Yes, we all do, both verbally and non- verbally. We also all have distinctive communication styles and preferences.  In short, if you feel your buttons getting pushed as someone is communicating with you, tell them.

• Feedback: Giving and receiving feedback is imperative to making sure your hot buttons don’t get pushed, and is imperative to helping to not push others – it’s a cycle.  And per these kids who think bullying others is cool – they won’t think it’s so cool when it’s the ones they’re bullying who grow up to be the quality leaders they report to in the workplace!

“The challenge of leadership is to be strong, but not rude; be kind, but not weak; be bold, but not bully; be thoughtful, but not lazy; be humble, but not timid; be proud, but not arrogant; have humor, but without folly.”

~ Jim Rohn

And per Ms. Karen Klein – I certainly hope she uses some of that money everyone’s been sending her to start an anti-bullying non-profit organization – after all she is now in position to help shape some of the future quality leaders of tomorrow, and we can never have to many of those!

* As an update: It seems that the kids involved have in fact received punishment.  As of June 30th, they received one-year suspensions from school and regular bus transportation, they will be transferred to the district Reengagement Center, and will also be required to complete 50 hours of community service with senior citizens and must take part in a formal bullying prevention program.

* As another update: Harassed bus monitor starts anti-bullying foundation

About Scott Span, MSOD: is President of Tolero Solutions Organizational Development & Change Management firm.  He helps clients to facilitate sustainable growth by developing people and organizations to be more responsive, focused, productive and profitable.

Email | Website | LinkedIn | Twitter | Blog | Facebook

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*All Rights Reserved. Reproduction, publication, and all other use of  any and all of this content is prohibited without authorized consent of Tolero Solutions and the author.

Leadership is…

Part One in a Summer Series on Creating a High Performing Organization: 

We’ll share our thoughts, though we also prefer to hear from you, so share your opinion !

According to our marketing partner, Preactive Marketing, the phrase “leadership is” has over 6 million global monthly searches.  This indicates there is a growing interest in the topic and in learning to become a better leader.

So, how would you finish the phrase leadership is…

I would finish it something like this:

“Leadership is the art of getting someone else to do something you want done because he wants to do it."

- Dwight Eisenhower

Thanks for the words of wisdom Ike. Leaders can’t lead without followers - or as I like to call them - implementers and doers. So, how does a leader get someone to do something because he/she wants it done?

• Transparency – Be transparent. People can usually tell when “something is up.” So before the rumors begin flying and productivity is impacted, communicatewith your employees. When making strategic decisions, determining organizational changes, or facing issues that impact employees, successful leaders need to be transparent with their workforce about how these matters arose, their thought process for dealing with them, and how their solutions may directly impact those they lead.

• Trust – Create a safe and trusting environment. Trust is a fundamental behavior for any relationship, both personal and professional. According to a study by the Hay Group, a global management consultancy, there are 75 key components of employee satisfaction (Lamb & McKee, 2009). They found that: Trust and confidence in top leadership was the single most reliable predictor of employee satisfaction in an organization. Trust must be earned. Leaders can earn employee trust by helping employees understand the company’s overall business strategy, informing them how they contribute to achieving key business goals, and sharing information with employees on both how the company is doing and how an employee’s own performance is relative to organizational objectives. It is much easier for employees to trust a leader that shows an interest in them.

• Self Awareness – Be self aware. Successful leaders have a heightened level of self-awareness, they have an understanding of themselves, their behaviors and actions, and how those behaviors and actions are interpreted by, and directly impact, employees. A good example of leadership self-awareness is exhibited in the U.S. Army’s leadership philosophy of “be, know, do.” Be proficient and competent, know yourself and your strengths and weaknesses, and do take responsibility and lead by example. Always be open to further growth and learning. Professional coaching is also a great well to help further develop leader self-awareness.

You see…leadership is a facet of business that is imperative to succeeding.

"The quality of leadership, more than any other single factor, determines the success or failure of an organization."
- Fred Fiedler & Martin Chemers

So be a quality leader – one who people trust, respect, and want to follow!

If you’re looking for leadership training for yourself or for your organization – contact us by Friday, June 29^th and mention this blog - we’ll take 15% off the offering that best fits your needs.

About Scott Span, MSOD: is President of Tolero Solutions Organizational Development & Change Management firm.  He helps clients to facilitate sustainable growth by developing people and organizations to be more responsive, focused, productive and profitable.

Email | Website | LinkedIn | Twitter | Blog | Facebook

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*All Rights Reserved. Reproduction, publication, and all other use of  any and all of this content is prohibited without authorized consent of Tolero Solutions and the author.

Raise Your Hand if Your Organization Can Improve Employee Development & Recognition!

Part One in a Summer Series on How to Improve your Performance: 

So how many of you raised your hand? It’s ok, we can’t see you – go ahead, be honest.  If we were to ask your employees if they feel your organization can improve employee development and learning and increase recognition– how many would raise their hand?

One of the most overlooked yet important assets a company has is their people.  If you don’t take care of the people – your long term goals are unlikely to be met – and you may never see how far you can really go with your business.

Reasons to improve employee development and learning:

• Most people want to learn. They want to be challenged. The more you can provide opportunities for them to do so, the more likely they are to remain engaged. The more engaged the workforce, the higher performing they are, the higher performing they are the more innovation and revenue are likely to increase.

• When people acquire new knowledge they find of value, they usually have a desire to apply that knowledge, and to share it with others. Not only does this increase organizational learning, it also helps increase team performance, via knowledge sharing and communication.

• When your people feel they can learn and grow with your organization, and they feel their knowledge and contributions are valued, then they are less likely to look for a job elsewhere.

“An organization’s ability to learn, and translate that learning into action rapidly,

is the ultimate competitive advantage.” 

– Jack Welch

 

Ok – so this is great, you say.  But how do I focus more on my people?

3 quick ways to improve employee development and learning:

• Ask your employees what they want. What types of knowledge and learning opportunities can help them better perform their jobs? What types of knowledge and learning opportunities make them feel challenged as individuals? Collect the data and act on it. Offer options based on employee input. One of the quickest ways to increase performance is to increase engagement.

• Provide for peer to peer learning. Brown bag lunch and learns, webinars – take advantage of various formats available for employees to share knowledge and interests with others who may benefit. Providing employees the opportunity to transfer knowledge increases an employee’s communication skills, and is an easy way to provide recognition and make them feel valued.

• Understand your needs and admit you don’t know what you don’t know. If specific learning and development is requested by employees, and is of value to the organization, and you don’t have the capability in house to deliver, then look outside. Partner with other organizations on learning and development offerings or bring in an outside resource.  (Not to toot our horn, though c’mon it is our blog, Tolero Solutions can help with designing learning and development programs and delivering employee recognition strategies – contact us for a free evaluation)

“Learning is not compulsory… neither is survival.” – W. Edwards Deming

 

Ok – so we know your attention span is short this time of year, particularly if you have a pool or beach nearby, so we’ll keep this short. We just covered one area to look at that will help improve your performance - employee development and recognition.  Our next installment will be about retention and engagement.

 

Need help implementing improvement strategies?  Have questions or comments? Contact us today to learn how Tolero Solutions can help you become a high performing organization!

About Scott Span, MSOD: is President of Tolero Solutions Organizational Development & Change Management firm.  He helps clients to facilitate sustainable growth by developing people and organizations to be more responsive, focused, productive and profitable.

Email | Website | LinkedIn | Twitter | Blog | Facebook

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How to Create and Honor a Culture of Employee Development

Earlier this week I attended a not so typical awards ceremony - The Apollo Awards, hosted by Helios HR and Smart CEO. As I think the concept of the awards is of value, and the vibe of the event was energizing – particularly for being held before 8am – here is a little free positive PR from someone who also works to help organizations develop, engage and retain employees.

The Helios Apollo Awards recognize Washington-area organizations that promote employee growth and development as an integral part of their organizational culture. Participating organizations recognize these programs are not only necessary in providing them a competitive advantage, but that they contribute to employee retention by developing strong managers and providing meaningful projects, credibility through enhanced certifications, and succession planning through promotional opportunities. Their efforts not only benefit the end client, but the individual and the community as well.

As a small business owner, and Organizational Development practitioner, I value the importance of positive organizational cultures. Many organizations find employee growth and development a daunting task, and are not sure where to begin in designing processes and programs that contribute to employee growth and development, and thus increase engagement and performance. When Tolero Solutions works with clients, we often help them with retention and engagement issues and stress the huge difference employee development can make in creating a productive, profitable and high performing organization.

“The Five Commandments of Effective Employee Development:

1. THOU SHALT BE A VISIBLE LEARNER

2. THOU SHALT TREAT ALL INDIVIDUALS INDIVIDUALLY

3. THOU SHALT FIND YOUR OWN VOICE

4. THOU SHALT SEE THINGS AS THEY OUGHT TO BE

5. THOU SHALT MODEL THE MODEL”

- (unknown author)

According to a study by the Corporate Executive Board:

• Employees of managers who are very effective at development can outperform their peers by up to 25%


• Organizations that focus on employee development have employees who are 40% more likely to stay with the organization


• Managers who focus on employee development have employees that are 8% better at responding to change than those who don’t place the same focus

Focusing on employee development does have a direct impact on organizational performance. A few simple things you can do to help develop, engage and retain your employees:

• ASK your employees about their learning and development needs – and take action


• Reevaluate and ramp up organizational communications


• Implement peer learning options


• Diversify and customize employee training and learning opportunities


• Have realistic performance goals tied to growth and development


• Recognize, recognize, recognize!

Seeing so many businesses of various sizes and industries succeed as models in developing and engaging their employees was, well, quite inspirational. I look forward to the event next year. My congratulations goes out to all the finalists and award winners. I thank them for partly reminding me why I do the work I do by serving as a positive example of what can be achieved by focusing on an organizations number one asset – and I’ve said this before – people!

About Scott Span, MSOD: is President of Tolero Solutions Organizational Development & Change Management firm.  He helps clients to facilitate sustainable growth by developing people and organizations to be more responsive, focused, productive and profitable.

Email | Website | LinkedIn | Twitter | Blog | Facebook

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*All Rights Reserved. Reproduction, publication, and all other use of  any and all of this content is prohibited without authorized consent of Tolero Solutions and the author.