"Knowledge is power," as the common saying goes. Data is involved in every branch of a business, no matter the industry. In this current data-driven economy, businesses that fail to properly evaluate data and data systems during a merger or acquisition are not only failing to recognize potential assets, they are putting themselves at risk. Missed opportunities can translate into a lack of merger synergy and thus profitability.
There are several different types of data sets that need to be properly analyzed: customer, operational, marketing, financial and human resource data, just to name a few. Let's take a brief look at the importance of properly examining the human resource or talent data in regards to a merger or acquisition.
Talent data reflects the human capital that a company has to offer and it underlies everything that a business accomplishes. Within every business is an ecosystem of employees working in unison for a common goal. When a merger or acquisition occurs, this life cycle is inevitably disrupted. It is how quickly a business can recover and redirect its talent and workforce that makes or breaks the synergy and thus success of said deal.
The Formula for Success
When a company merges with or acquires another company, there are some standard triggers. For example, generating new products, or services or acquiring clients or personnel. The company wants to increase profits while keeping costs low and this requires an efficient analysis of company data and synergy amongst the two companies. Data can either be deleted, preserved or merged, depending on the type of data. During a merger or acquisition, the opportunity to utilize employee knowledge and talent is vital to effective and intelligent data management as well as creating a common cultural bond. The most successful M&A's are those that properly analyzed all vital data, implemented a plan with proper leadership and maintained organization as the new company culture formed.
Goodbye Redundancy, Hello Efficiency
With mergers and acquisitions, obviously, there are going to be two sets of data located in two different silos or data rooms, as well as, two separate workforces. Proper analysis of company talent is a science and when effectively implemented ensures that the right employee is in the right place. One of an M&A's underlying goals is to successfully cut costs which unfortunately means that some of the staff from either company are no longer necessary. Businesses need to recognize what their employees have to offer skill-wise and make a quick decision. This can require complicated due diligence and market research but the quicker the company is able to integrate the employees and establish a new, functional work culture, the better the company can operate and thus obtain synergy.
Simple data tricks like automatically matching disparate job titles and seamlessly combining datasets from multiple systems can really make a difference here.
There is much value to be gained when a merger or acquisition is successful. Aside from new sources of revenue, the company's business model can inspire the employees to become more efficient, productive and innovative. With efficient analysis of all relevant data, in particular, the talent data of both companies involved, the new company entity will continue to operate without being overly disrupted by a clash of work cultures. With human capital being the underlying force of any company, properly analyzing the talent data can be one of the biggest factors of a successful merger. For more information about data analysis or mergers and acquisitions, contact us at SwoopTalent, where you can use your data, your way.