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Everyone Must Profit from Victories |
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Increase both human resources and material assets with each victory. |
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When a rival in mergers and acquisitions reduced bonuses, Merrill Lynch swooped in with job offers. Said one defector, "I figured Merrill Lynch would always pay me when I had a good year." This employee believed that with the change would come a direct connection between victory and personal gain.
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While I was visiting the national headquarters of one of America's most successful companies, one of its major competitors announced it was going out of business. Within minutes, you could hear secretaries on the phone advising branch managers to immediately interview and hire the best of the now-defunct competitor's salespeople (who would also have contacts with the best prospects). As Sun Tzu says, "This is called 'becoming stronger in the course of defeating the enemy.'" What a loss of good fortune it would be to win the battle and not become stronger. |
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Too often, a corporate acquisition results in a "housecleaning" of very competent and experienced people. The people who are terminated in the interest of financial efficiencies are often those who really know the customers, the culture, and the subtle elements necessary for success. The result is the acquired company becomes weaker before it becomes stronger, if it survives at all. |
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The acquisition strategy of many successful companies has been to keep the original owners and staff of acquired companies as active managers while providing the financial resources to power future growth. The chairman of a successful business built on friendly acquisitions said, "One of the key objectives in an acquisition is to retain the existing management. They are the people who built the business, and if we are going to buy that business, it is important to utilize their strengths." |
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In establishing recognition and reward programs for performance, think about providing opportunities for everyone to win. Make the award cycle short and issue rewards immediately after the event. Always gather an audience when you give recognition. |
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