5 Lessons Dancers Can Teach Us About Merger and Acquisition Success

In my career, I have been on all sides of mergers and acquisitions (M&As), having led integration efforts for businesses and more recently with my business, Planar, having been acquired by Leyard.

I liken the success of M&As to the work of two experienced dancers coming together for the first time.

Each partner brings his or her own strengths and style of dance, and each partnership creates something new and different.

In the same way, M&As require the participants to learn a new dance, one that takes effort and communication to get it right.

Here are five lessons that the world of dance holds for successful M&As:

1. The choreography sets the pace

It’s important to know what dance is expected. The foxtrot, the tango, and hip-hop are all different and require different moves and skills, so it’s critical to understand what to prepare before the music begins.

In the same way, a successful acquisition requires integration planning to ensure that everyone is prepared for what lies ahead.

Knowing the dance is one thing. Knowing how to adjust to a new partner is another. Without a plan of attack and clear communication, confusion and ambiguity can strip the combined organization of its productivity.

2. Clear roles and responsibilities matter

As with any dance, it’s important to determine who is leading and who is following. In M&A transactions, this is often clear, as one company acquires another or new organizational charts are established.

When Leyard acquired Planar, steps were taken to identify the roles and responsibilities of individuals, taking adequate time to determine who would be leading.

Nothing is perfect, of course, but clear roles and responsibilities, especially in the leadership ranks, help keep people focused on the dance, not on the backstage drama.

3. Successful integrations require listening and forgiveness

Despite the best efforts at communication, even the most experienced dancers can step on each other’s toes. Looking back over the integrations I have been involved with, I can think of dozens of missteps; times when I rushed something that required more time and coordination. Times when customers or employees were unnecessarily surprised by change.

While missteps like these are normal, it’s important to learn from them and turn them into opportunities that build trust. By being humble and open, the dance itself can teach all parties what it means to be a world-class partner.

4. Trust is at the core

Dancers often hurl their bodies into the air expecting to be caught, but before they do, they need to trust the strength and technical skills of their partner.

The same is true of M&A integrations, and what can build trust and teamwork faster than anything is obtaining a common view of the problem.

Business leaders talk about facing the truth, measuring performance, and being data-driven. All of these help people with different perspectives to see the same set of facts and share the same sense of urgency, ultimately creating a foundation for cross-functional teamwork.

5. Teamwork takes time

Experienced dancers may make it look easy, but even they will dance more smoothly and confidently the more practice they have with a particular partner.

So what happens when you go right from rehearsal to the stage, as is the case with most M&A integrations? This is where experience and attitude play a huge role.

Leyard acquired Planar, in part, due to the strong and established management team, and the team’s previous experience acquiring and integrating companies has already proven useful in navigating the current transition. Today, we are six months into the integration, and although it is still early, we are making real progress towards the success of the combined company.

This article was first published on the American Business Journal's BizJournals.com website.

Five Steps to Avoid Death by Ambiguity

When a company reorganizes, hires a new leader, or when an individual’s job responsibilities morph into a new role – a common phrase is often heard when the changes are introduced, and that is “change is hard.”

But change is also necessary – for businesses to address new competition or expand into new markets, and for individuals to grow in their career.

While it can be hard, change by itself has never killed anyone. As a species, we can deal with change and are quite adaptable. Employees might worry about changes to the organization or their work assignments, but at the end of the day, they will survive.

The contrary – not changing – has led to untold fatalities of organizations. Not expanding to new market conditions, not adapting to new laws and regulations or addressing new competitive threats have all buried businesses. Without some capacity for change, individuals can’t grow, learn something new or do something better. Organizations, too, thrive because of change, not despite it.

When Change Leads to Ambiguity

The real danger in change, I believe is it’s traveling partner: ambiguity. Without clear direction, ambiguity kills. When the new is introduced into the corporate strategy or into the task list without explanations of why the changes are needed or the new desired outcome, the death of productivity and teamwork quickly follows. Unclear of what is expected of them, employees lose motivation and confidence. Without the ability to help each other, co-workers lose their sense of team. Conflicts arise based on misunderstandings of the priorities and urgency. Employees can revert to old, outdated ways of working or dive headlong into unnecessary disruption, filling in the gaps of the strategy with their own fears and hopes. The organization’s ability to change is sabotaged by the ambiguity that accompanies it.

So, what is the antidote to ambiguity? How can we deal with the fact that there will be unknowns in our business world? How can we conquer these unknowns without losing our productivity and teamwork?

In his book The Five Dysfunctions of a Team, author Patrick Lencioni outlines the idea of “clarity even in uncertainty.” He proposes that the role of the leader is to create clarity (in job roles, goals, priorities, plans, etc.) for their teams, even if many things are uncertain. Sure, those roles, goals, or priorities might change over time (and per my earlier point, we certainly hope they do to keep up with our ever-changing world), but in the meantime, people know what they should do and that what they do matters.

How to Avoid the Pitfalls of Ambiguity

I have learned these five steps to help our team embrace change and avoid the pitfalls of ambiguity.

1. Provide Background

While it is not always possible to disclose the details of why a teammate is no longer on a project or a new rule must be implemented, providing the team with background information, even at a high level, about why the changes are necessary and how they will help improve the situation moving forward helps employees feel informed and part of the solution.

2. Clarify New Goals and Desired Outcomes

Changes are usually made to improve the company, team or individual. Clearly outlining the anticipated improvements will motivate and empower employees, giving them the confidence that the changes will ultimately be for the better of the company, team or individual. Paint a clear picture of the new destination.

3. Provide Clear Assignments and Direction

Eliminating as much vagueness as possible will help employees follow the new direction. Pairing changes with clear direction encourages employees to embrace the changes. Managers might find that in times of change, they need to be a bit more prescriptive than they might have otherwise been.

4. Be Available

Questions and concerns will undoubtedly arise. Being available to answer questions and address concerns will help resolve ambiguity and create transparency between leadership and the team, giving employees the confidence to embrace the new direction. Stay involved to provide updates, as goals are met and plans fluctuate, to adapt to the ever-changing situation.

5. Jump in with Enthusiasm

Show the team you are adapting to the changes yourself by being flexible and nimble. Celebrate when changes have improved results and where teamwork is thriving. Have confidence that the changes will lead to new opportunities and be passionate about helping the team avoid ambiguity.

And throughout, when you are facing times of uncertainty, focus on the things that you know or can control before ambiguity has a chance to kill.

This article was first published on A Thin Difference.