5 Integrating tools and technology
The typical sales team has 30 or 40 tools in their toolbox as part of their workflows, according to Dorrier. “When two different sales teams with entirely different toolsets collide, redundancies and inconsistencies emerge, and seller frustration builds,” he observed.
Conducting a thorough audit and rationalizing the new organization’s sales technology stack are two essential steps to streamlining operations and avoiding resentment among sales teams.
6 Aligning compensation
Compensation plans can become sticking points in a merger and acquisition. If companies don’t pay heed to differing pay structures and financial incentives, they risk losing top performers and sales managers. That’s especially concerning because the top 20 percent of sellers are responsible for the bulk of an organization’s sales revenue.
Davidson noted, “Organizations have to make sales leaders feel valued, but also show a commitment to investing in them as leaders of the combined organization. It’s important to start including them very quickly in the succession framework.” To improve retention, organizations should spend time designing retention packages to keep the best leadership and sales talent on board, preventing a mass exodus that could destabilize the newly formed entity.
The key to successful M&A is a holistic, data-driven approach
In every challenge lies an opportunity. By anticipating these hurdles, organizations can emerge stronger, more united and better positioned for growth.
Data-driven diagnostics, such as organizational maturity models and talent assessments, can help company leaders understand these M&A challenges, giving organizations deep insight into everything from an organization’s culture to the tools and components of sales methodology critical to the sales team. Dorrier advised, “Using transparent assessments and clear messaging around what each organization brings to the table will do a lot to engage and energize both salesforces.”
The organizational consulting experts at Korn Ferry help merging organizations bridge the gaps between culture, processes, tools and systems. For example, our MASS model—which focuses on mindset, ability, structure, and systems—helps organizations transform at scale.
Learn more about how we can guide your organization through mergers and business change.