Why Coaching—Yes, Coaching—Could be the Key to a Successful M&A

When, earlier this summer, entertainment giant Paramount Global announced a merger with film studio Skydance Media, it marked a new era for Paramount, one of Hollywood’s oldest companies.

It was also, of course, just the latest instance of companies joining forces. Hardly a week goes by without news of a major business merger or acquisition, complete with quotes from company executives confidently talking about “synergies,” “efficiencies,” and the creation of a “market leader.”

What gets much less media attention is the human side of an M&A. For every two companies that become one, there can be thousands of people thrust into new roles, new organizational structures, and a new, unwelcome sense of uncertainty.

Coaching before and after the M&A process

One way to see the people impact of mergers & acquisitions is to look at how individual priorities shift before and immediately after the merger.

Coaching is an ideal way to observe this shift as it happens in real time and is focused on the individual’s experience. When EZRA evaluated the development focus of leaders both during and after a merger in the financial services sector, the findings were telling.

“Probably the biggest thing we found was a profound change in the focus of coaching before and after the merger,” says Arabella Vaughn, Assessment and Insight Analyst at EZRA Coaching.

“Before the merger, people’s development priorities were areas like motivating and engaging their teams and working together. Their priorities also focused on commercial outcomes, such as increasing business acumen and thinking innovatively."

Post-merger, Arabella says, priorities changed dramatically. They shifted away from team and organizational goals and instead focused on areas aimed at helping the individual’s career, such as networking and working in a matrix organization.

How development can help in an M&A

While the shift from an “us” to a “me” focus can be symptomatic of the stress felt by those in an M&A, development—and coaching in particular—can help leaders and their teams navigate the change.

“It’s critical that people don’t abandon their development,” says Maggie Salo, an EZRA Coach. She also says that, while business goals are important, in an M&A environment development needs to reflect the needs of individuals.

“During periods of great disruption and change, it’s important to ensure development goals are aligned with what people want to work on. It’s all well and good to keep focusing on hitting commercial targets. But the reality is people are fighting for their careers and they understand there’s going to be some restructuring and changes to roles.”

The importance of communication in M&A

Along with individual development, Maggie points out that individuals crave to be looped in on the organization’s plans.

“People need constant communication about what’s going on. And when that communication doesn’t happen, when there’s no transparency in the workplace, the rumor mill takes over. And that can result in disengagement and increased anxiety.”

Even if top leadership has a vision, a plan, and a commitment to be transparent about sharing information, the message may not cascade down to leaders at lower organizational levels.

“If the message is not the same at all levels, that’s a problem.” Maggie says organization-wide events, such as town halls, are important. But they need to be supported with messaging and tools to help frontline and mid-level leaders answer questions and have transparent, informative conversations with their people.

Why leaders need to take care of their own needs first

Maggie also says leaders need to make sure they tend to their own needs.

“Leaders are people, too. They may feel threatened, and they may be afraid. So, they must take care of themselves first and get themselves in a good place. While you want to be honest and transparent, you don’t want to share your anxiety or unease with your team.”

Arabella says coaching can help. The EZRA research showed that even though development goals shifted post-merger, leaders still turned to their coaches to help them navigate the disruptive, volatile environment.

“I think having an impartial third-party person is super-important. This kind of business change can create uncertainty, and spike concerns around safety and security in the workplace. Having someone impartial to talk to is especially relevant.”

When all is said and done, however, there’s nothing easy about an M&A—especially when it comes to people.

“People need to feel okay about what’s going on,” Maggie says.

“The threat is very real, and people feel it miserably.”

Learn more from our Coaching and Leadership insights.