How to Integrate Long-standing Employees into New Systems Without Conflict?

Dear friends,

We recently took over a new company, and the employees there were older than those in our parent unit. They had been working for 13 years in that company, and the old management, based in North India, had the employees handling all functions themselves, including the accountant. However, after we took over, the employees wanted to stick to the old systems, and our repeated attempts to align them with our protocols have failed. We do not want to fire anyone.

During those 13 years, the accountant and his group compartmentalized the organization, and no one really knows the actual practices and policies followed. I would be grateful for your suggestions and guidance.

Thank you.

Dear Sreejith Menon,

Yours is a classic case of change because of mergers and acquisitions. In the chapter of Change Management, this subject is discussed in every book of Organizational Behavior.

My comments to your statements are as below:

They have been working for 13 years in that company, and the old management, being based in North India, all the functions were carried out by the employees themselves, namely, the accountant.

You need to conduct the training on change management. Tell each employee to prepare an action plan for his/her changed behavior. That includes learning a new skill set as well. The change should be measurable.

After we took over, the employees wanted to follow the old systems. Our repeated attempts to align them with our protocol have failed.

You need to disclose what steps you had taken so that they follow the new systems and processes. Their behavior is obvious. What they had been doing all along cannot be changed so soon. Please remember the famous statement, "People do not resist change, but they resist being changed."

We do not want to fire anyone.

This is your thinking from the heart. Managers need to think from their head. If the situation merits someone's dismissal, please go ahead and do it. But before taking this extreme action, you need to give sufficient time to that delinquent employee to change his/her behavior.

During those 13 years, the accountant and his coterie compartmentalized the organization, and no one really knows what the actual practices and policies followed.

You should have found this out well before taking over the organization and not after. You should have kept your strategy ready to handle this compartmentalization. In the coming year, obtain as much information as possible from him and then let him go. This will send a message to one and all, and others will fall in line automatically.

Ok...

Dinesh V Divekar

The situation you are in has nothing to do with "employees older than our parent company." It has to do with the insufficient or lack of due diligence conducted during pre- and post-takeover, and also effectively managing change.

Due respect and credit must be given to this Accountant who has kept the company going for the last 13 years by leading the team without old management's intervention. If the objective of the takeover was not clearly communicated, coupled with non-involvement with key personnel, the resistance being faced now is natural as employees will fear for their future with the company.

If the Accountant has been identified as a key person to retain, especially for business continuity reasons, you need to determine what motivates him and design a retention program that motivates him and aligns him with the key objective of this takeover. Once he is aligned, he will then be the key driver of change for the rest of his team.

Also, in a takeover, it is not necessary (this is one major misconception) that the "seller" has to forego or change the way the business has been conducted by aligning with the "buyer's" policies and procedures. For example, implementing the most current, leading-edge systems or tools, which may be a mistake because the older systems, which are usually well-tested and reliable, may be the way to go. This may be the case for your situation because "the employees older than our parent company" - which translates to they are seasoned industry players than you!

Investing in people through training to equip them with the necessary skills to manage this post-takeover integration and meet the new company's expectations will also achieve "buy-in," and thus lower resistance.

So, instead of taking on a "policing role," actively engage and consult with the Accountant and employees to finally win them over and get the buy-in you are looking for.

Remember, while integration is an important phase in any takeover, managing the climate is the topmost priority as it affects the employees, customers, shareholders, and ultimately the success of the takeover itself.

Regards,
Autumn Jane