In the latest HCI Webinar, Dr. Jonathan H. Westover talks with with Jonathan Bennett about navigating the emotional journey of a merger or acquisition of your company. Below is a summary of the main points from their conversation! Check out the full episode and let us know what you think!
Watch the episode here:
Quick Recap
Jonathan Bennett and Jon discussed strategies for navigating the emotional journey of mergers and acquisitions, emphasizing the importance of creativity, decision-making, and understanding organizational dynamics. They shared personal experiences of founding and selling companies, highlighting the emotional challenges involved in letting go of one's identity and the business. The conversation also focused on the importance of preparation, planning, and patience in change management, as well as the challenges and unpredictability of mergers and acquisitions.
Navigating Emotional Aspects of Mergers & Acquisitions
Jon and Jonathan Bennett discussed strategies for navigating the emotional journey of a merger or acquisition. Jonathan Bennett shared his background, emphasizing the importance of creativity and humanities education. The conversation focused on exploring ways to minimize the emotional impact of mergers and acquisitions, particularly for owners, executives, and employees. Jon expressed concern about the increasing focus on career readiness in universities, which neglects decision-making, creativity, and other human elements crucial for business leaders.
Founding a Management Consulting Firm: Emotional Journey
Jonathan Bennett shared his personal experience of founding a management consulting firm and the emotional journey that comes with it. He described how the company became an integral part of his identity and how he eventually considered transitioning it to a colleague. He detailed the process of orchestrating a management buyout, which allowed for a smooth transition and gave the new CEO time to adjust. Jon also humorously acknowledged that his role as CEO was not as significant as he thought, as the company quickly adapted to the new leadership.
Navigating the Emotional Journey of Selling a Company
Jonathan Bennett shared his personal experience of selling his company, highlighting the emotional journey involved in letting go of one's identity and the business. He noted that the process of selling a company is often underestimated, with the emotional aspect often overlooked. Jon emphasized the importance of understanding the organizational dynamics and the impact of leadership on the company's culture. He also discussed the common elements shared by founders and others going through the exit journey, suggesting that there is a need for more open discussions about this process. Jon agreed with Jonathan Bennett points, acknowledging the challenges of stepping away from a business and the importance of preparing others to take over.
Preparing for Smooth Business Transitions
Jon and Jonathan Bennett discussed the importance of preparation and planning in business transitions, particularly mergers and acquisitions. Jon emphasized the need for a runway of preparation to avoid uncertainty and disruption, which can affect both internal teams and clients. Jonathan Bennett agreed, highlighting the value of doing the work upfront in secret and in private, often over a long period. He stressed the importance of planning and preparation to ensure a smoother transition and minimize disruption.
Change Management Challenges and Employee Adaptation
Jonathan Bennett and Jon discussed the challenges of change management in organizations. Jonathan Bennett emphasized the need for leaders to have patience and understanding when implementing changes, as it takes time for employees to process and adjust. He also highlighted the importance of allowing employees the same time to process changes as leaders themselves had. Jon agreed, noting that senior leaders often forget that not everyone processes changes at the same speed. He stressed the importance of remembering this to avoid negative impacts on the organization's culture and ability to adapt to changes.
Mergers and Acquisitions Challenges and Adjustments
Jonathan Bennett and Jon discussed the challenges and unpredictability of mergers and acquisitions (M&As). Jonathan Bennett shared his personal experience of selling his company and transitioning to a new role as a trusted advisor and coach, serving leaders at crossroads. He emphasized the importance of understanding the time it takes for individuals to adjust to new situations, often longer than anticipated. Jonathan agreed, noting the difficulty of teaming up with former competitors and the cultural challenges that arise during M&As.
Listen to the webinar here:
