Developing a People-First Approach to Mergers and Acquisitions

For many, change is a terrifying concept – especially when it comes to business. What we so often forget, however, is that change, while uncomfortable, is the inevitable catalyst for transformation and innovation. Sometimes the most disruptive moments in our respective careers are the ones that hold the greatest momentum and set us on the path to incredible development and professional direction. And contrary to popular belief, mergers and acquisitions can represent this very moment.

Historically, the hotel industry has been both resistant to change and notorious for it. We are a deeply rooted sector in a tradition that is subject to the ever-changing expectations of our guests. Turnover is a constant consideration for hotels as an influx of talent arrives with the tide of high season and leaves as the vacation frenzy declines. New faces and new guest needs are ubiquitous as hoteliers work day after day, season after season, to curate extraordinary experiences. To that end, mergers and acquisitions are incredibly commonplace as hotel brands seek to continually diversify and transform their portfolios by buying smaller brands and real estate. This experience does not only apply to hotels. The technology partners who help shape the guest’s experience behind the scenes are also subject to frequent, occasionally large changes.

Unfortunately, these mergers are not always viewed in a favorable light. In fact, they often instill fear and distrust between teams and colleagues in ways that undermine the trust and culture that keep a brand intact. Why? Because they often lack the main ingredient: a people-first approach.

In the last few months my team at VENZA has been in a time of incredible growth and change. In particular, we took over another company, CyberTek, and pushed these people over into our cohesive unit. As any business leader can surely tell you, this is not an easy task. The corporate culture is an essential part of our success at VENZA. We knew that we had to approach this merger with the utmost transparency, consideration and respect in order to redefine the way we view mergers in our industry.

Collaboration, not elimination

In the past, acquisitions are more of a surprise than a careful transition. Anyone who has been involved in a merger will likely describe a period of intense uncertainty about their position. Will the merger lead to layoffs? Who will be retained or replaced? Will the roles change? Are employees welcomed and valued in a new corporate structure? Will the corporate culture that you have come to know and love be retained or replaced with a completely new dynamic? These are the questions that coworkers often ask when news of a merger or acquisition comes out, in part because of the often secretive nature of these transitions. So the question arises as to how companies can promote disruptions in a way that creates company-wide synergies and instead of displacing valuable employees, brings teams together in a meaningful and scalable way.

At the beginning of this merger, I opted for transparent leadership and continuously asked the employees we had gained on their previous experience with mergers for feedback. “It was horrible,” was the typical response I received, and after that I told them it was new territory for me, but I shared their concerns. “Let’s be concerned together. I want us all to play on a level playing field,” I told the team. Through these first discussions, it helped me to be vulnerable and transparent with these valuable additions to the VENZA team, to dispel preventive concerns and fears and to develop a feeling of cooperation and openness. We met them where they were, we asked questions, we gave honest answers and we broke down the barriers that normally exist between two companies in a transition phase. As Brene Brown says, “Remaining vulnerable is a risk we must take if we are to connect.” In our team at VENZA, connection and culture are everything, and this attitude enabled us to start the partnership in the best possible way.

Culture comes first

Not all companies should merge because not all cultures are compatible. This is an important lesson for any leader (in any industry) working to grow and scale their business and teams. Talent and potential can only really be realized in an environment that gives employees a certain sense of belonging and buy-in. Ideally, a company should offer its members a set of common core values, commitments, and philosophies relating to their business. Mergers and acquisitions often fail because the companies and teams involved do not really fit together. When bringing two companies together, the best course of action is to find the right culture instead of trying to force an adjustment that doesn’t exist.

When we approached CyberTek, a merger wasn’t on the table at first. The company has been contacted many times by other organizations, but they just weren’t ready to sell until they met with us. But from day one we decided to do things differently. We offered CyberTek an open book and entered every stage of the process with transparency and compassion. Before we approached the company, we knew that it had a similar culture to ours in VENZA, and that would be the key to the success of our partnership.

In the months that followed, we got to know the CyberTek team on a personal level to get the anonymity and concern out of the acquisition process. I told them, “Let’s be scared together, let’s put all the cards on the table and talk about it.” And that’s exactly what we did. There were no politics or secrets; Instead, we are committed to the same commitment to open communication and authenticity that has always existed at the heart of our company. If you are genuinely interested in corporate culture, you need to be ready to sit at a conference table with every employee and talk about that culture at every level of the organization. This is the type of company I’m interested in starting, and I’ve spent my career aligning with like-minded people who share that belief and commitment.

At face value, authenticity, communication and transparency sound like simple “buzzwords” in the business sector. But they are so much more than that. These are the key components of our corporate culture that have ensured the success of VENZA and our customers and paved the way for our first successful merger and acquisition. Our people-first and culture-first approach sets a precedent for how we do business and has made our success scalable in really exciting and meaningful ways.

ABOUT VENZA

VENZA draws on decades of experience and is a data protection company that can support companies in minimizing their weak points and ensuring compliance with regulations in order to protect guests and their data from breaches. By providing a security solution for preparedness, security and response, VENZA offers 360 degree visibility for proactive risk management so that users can focus on guest service and build trust in their brand. Better vision means better defense. Know the risks, protect the company with VENZA.

More than 225,000 users in over 100 countries turn to VENZA for tools, technology and strategic security support. Founded in 2008 with a decade of service in the hospitality industry, VENZA is a privately held company with regional offices in Atlanta, GA, Pensacola, FL, New Albany, IN and The Hague, The Netherlands. Further information is available at VENZAgroup.com