Getting on Board with One Foot

Andrew is a great example of someone who gradually learned these five lessons after his company merged, but he’s also an example of someone who initially resisted these lessons because of the adversity he encountered in this passage.

Andrew had just been promoted to vice president of risk management when the board of his bank decided to merge with a larger financial institution. For ten years, Andrew had worked at this large bank in a variety of roles. The merger with the larger bank took place as part of the consolidation in the banking industry; most banks created growth through acquisition of new franchises, geographies, and customers. Andrew’s bank had a strong culture, and he was proud of the company and his accomplishments within it during his tenure. He was one of a number of executives who were against the merger, although the board did not solicit his input.

Three months after the deal was closed, over one thousand people were fired from both banks, the majority from Andrew’s company. Andrew survived, though three people in his risk management team and his boss did not. New policies and procedures were introduced, most of which Andrew didn’t like; they seemed overly bureaucratic and process-oriented, even for someone in risk management. Andrew was even more disturbed, however, at feeling unappreciated, as if he had to prove himself all over again. His opinions were not sought, and when he offered them, he felt that he had less credibility than those who had worked in the acquiring bank. Nonetheless, he tried to “fit in” (again, his words). He attempted to go along with the consolidations, changes, and new strategies, though almost every night he’d come home and complain to his partner about “how the company isn’t like it was.” He also regularly talked to his old boss, and they spent most of their conversation complaining.

Finally, Andrew sought the advice of a coach, and in their initial meeting told him he was contemplating resigning. His coach, however, after listening to Andrew’s complaints and sharing his knowledge of the bank and its management group, suggested that Andrew might want to give it a little more time.

It took another month before Andrew’s feelings of alienation and betrayal began to dissipate. One of the risk assessment projects he was working on went well, and he received several public compliments from officers he did not know well in the acquiring bank. As a result, he was invited to serve on an integration team, working on a vision for the merged company. Andrew began the process of contributing to the new organization in a substantial way and found the evolving vision created in the project team to be insightful, not all that different from how he viewed the organization’s future. Soon Andrew found himself getting to know other executives from the former bank and maintaining his focus on the company’s mission. Within a year, he had reestablished himself with solid performance and output, and he began to trust a new network of peers and fellow executives.

This scenario repeats itself in every merger or acquisition, and the key component is development of trust. Effective leaders learn to develop trust quickly, and even trust others before they have earned it, especially since many companies today operate virtually or they continually reorganize. Creating trust requires a positive attitude about other people and their intentions, and there is no better place to learn this critical leadership skill than in the midst of a merger.