Missing Piece of M&A Integrations

Tue, 06 Aug 2024 12:25:00 +0300
Business / economics, Computer hardware, Science, Working life

"Data-driven empathy is the only way to avoid people-related M&A risks and failures," writes Timo Järvinen, Co-Founder of Finnish NayaDaya Analytics Inc.

While many mergers and acquisitions fail, especially due to people- and culture-related problems, solving this common and extremely costly issue should be the top priority for companies pursuing inorganic growth.

To motivate the acquired organization for change and inspire employees to execute the new vision, people must be understood and treated as human beings. Emotions caused by M&A integration have a decisive impact on behavior and the realization of typical risks such as employee turnover, quiet quitting, and productivity collapse. Emotions are contagious, for better or worse.

For the acquisition target, integration is like the valley of death, with only one way out. On the signpost, there is just one word: Empathy.

In this context, empathy means viewing integration through the eyes of people and understanding their diverse viewpoints, emotions, and behaviors.

Actionable Insights Needed to Mitigate Risks and Build Social Sustainability

Leaders with emotional intelligence are valuable. However, even the most skilled leaders cannot grasp the experiences of tens, hundreds, or thousands of people, let alone determine the quick targeted actions to be taken. These insights are not found in traditional employee surveys or pulses either.

It's no surprise, then, that the root causes of engagement or disengagement, employee retention or turnover, and high or low productivity remain in the dark. As a result, the right actions to address crucial issues and promote desirable behaviors stay hidden.

To successfully lead M&A integration, you need data, analytics, and tangible recommendations, and the right actions must be taken quickly. This is where our People Risk Analytics™ helps. With our patent-pending method and technology, based on science, AI, and M&A intelligence, we can effectively illuminate the critical dark spots of the integration process.

To reveal an intuitive overall picture of people-related risks, including their levels and root causes, we need to ask only three questions of employees. By allowing people to anonymously express their emotions and the reasons behind them, through our groundbreaking analytics, we provide action points and recommendations to mitigate people risks, avoid M&A failures, and build sustainable growth.

This is pragmatic, systematic, and analytic empathy with actionable insights, bringing benefits to both people and the business. It's about reducing risks and cultivating social sustainability. This solution is the missing piece of M&A integrations, securing significant investments and giving people the voice, attention, value, and opportunity to influence they deserve.

The author of this blog is Timo Järvinen, Co-founder of NayaDaya Analytics Inc.

If you would like to discuss whether People Risk Analytics™ could be an effective "insurance" for your integrations, please send email to Timo or book an online meeting: https://www.nayadaya.com/booking-calendar/online-meeting

Timo Järvinen, Co-Founder, Value Creator
NayaDaya Analytics Inc., Finland
Tel. +358 40 505 7745
timo.jarvinen@nayadaya.com