Human Resources Committee
The
Urge to Merge !
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Speakers:
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Mr. Hany Mahmoud, HR, Legal
& Administration Director Vodafone Egypt Telecommunications,
President, Egyptian HR Management Association.
View Presentation
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The Human Resources Committee held a meeting on April 18 with guest speaker Hany Mahmoud, HR, legal and administration director of Vodafone Egypt Telecommunications and president of the Egyptian HR Management Association, who addressed the topic “The urge to merge.”
Mahmoud began his presentation by explaining that organizations have a choice of expanding internally through generated growth, or externally through mergers, acquisitions or joint ventures.
A merger is a combination of two companies in which only one survives and the other goes out of existence, he explained. But planning is critical to the success of mergers and companies must define the reason of the merger, its goals, the corporate culture and the appropriate timing. The company leading the merger must give a clear, precise presentation to both companies, emphasizing the need for the action and its effect on the welfare of both companies.
Once the decision to merge is made, he went on to say, the company that survives should assign responsibilities and formulate an action plan to begin the monitoring progress. It is imperative to measure the performance of the newly formed company, he added.
The main hindrance to mergers and acquisitions is that the two merging entities often have vastly different corporate cultures, and if this is not taken into consideration it can undermine the merge.
Another important thing to address is rumors. Hany said that rumors usually circulate within an organization long before any public announcement of a merger. Thus, an official announcement is needed to manage both positive and negative reactions to the merger news and implementation.
Mahmoud ended his presentation by pointing out the “change management success equation,” which is: strategy x team x communication = success rate.
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SEKEM: Sustainable development
AmCham's Human Resources Committee held a meeting on February 22
with guest speaker Ibrahim Abouleish, chairman of Sekem Group, who
discussed the topic of "SEKEM: Sustainable development." Abouleish
began by explaining how his vision of developing human living and
society materialized in the launch of Sekem 27 years ago.
Back then, Abouleish explained, Egypt lacked the technology necessary
to reclaim deserts to increase its cultivable areas. Meanwhile,
the High Dam was damaging the country's fertile land, so farmers
were resorting to mineral fertilizers and chemical pesticides that
eventually proved to have a serious impact on human health. Sekem's
goal was to cultivate the land without harmful fertilizers or pesticides
by applying biodynamic agricultural methods.
The company has managed to provide high-quality agricultural products,
which are marketed in partnership with farmers, producers, vendors
and consumers. But Sekem is more than just an agro company - it
endeavors to improve human conditions through a number of social,
education and health initiatives that benefit its employees and
the community.
The Human Resources Committee also held a meeting on March 14 with
guest speaker John S. Maxwell, chief executive, Capita-Global, and
former president of the World Federation of Personnel Management
Associations (WFPMA), who addressed the topic "How can HR save or
hinder mergers and acquisitions?" Maxwell explained that after the
M&A is complete, the consolidated HR department must develop strategies,
policies and processes that facilitate organizational compliance
with laws, a committed and engaged workforce that accepts the organization
code of conduct, and a workplace conducive to employees' welfare
(safety, health, privacy and fair treatment).
Organizations should be guided by ethics, he said, adding that conforming
to values is part of performance management. For the organization
to have a healthy environment, the workforce should be at least
as diverse as its customers and external challenges. Companies should
also include organizational values and a code of conduct in the
training programs they provide to their staff. Lastly, he noted
that building social capital is vital to an organization's success
following an M&A as employee trust and a feeling of equitable treatment
are indispensable.
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Downsizing with dignity
On December 11, AmCham's Human Resources Committee hosted a meeting with
Simon Varely, managing director of I CAN Consultants Europe and
Middle East division, on how companies can "downsize with dignity."
Varely said that while companies downsize to cut budgets, the decision
to downsize does not necessarily entail job losses: Employees can
be redeployed to other areas of the business. If that's not possible,
employees can be encouraged to take early retirement packages or,
if they suspect their job might be on the line, opt for severance
packages early in the process.
Companies should anticipate how employees will react to news of layoffs,
be clear about how the restructured company will function and address
concerns about how the increased workload will be distributed among
the remaining staff. Furthermore, managers should prepare a plan
to deliver the message to staff with sensitivity and make sure all
employees get the message. In drafting this plan, managers must
think carefully about who will be most affected by the decision
to cut jobs and prioritize accordingly. Senior managers must be
available and visible when delivering the message.
Valery urged managers to involve all staff in formulating plans
for the company's future after the layoffs and to provide a rationale
for who gets promoted or moved into vacated positions. He stressed
that managers should never get drawn into personality debates, but
should carefully consider who would deliver the bad news, which
employees would get it first, and how they would take it.
Above all, Varely said, managers should give guidance and options without
imposing solutions. It should be supportive and sympathetic in its
dealings with the staff, but should remain firm and objective about
the available options.
Finally, he urged managers to go over a year's planning schedule with the remaining staff, in part to reassure them that management has a plan, but more than that, to reassure them that the company intends to be around in a year's time.
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