Director Mark Loftus comments on the impact of the Kraft-Cadbury takeover on the company's British staff in This is Money.
With hundreds of Cadbury workers losing their jobs after the
takeover by Kraft, despite previous promises by the US company, how
are the remaining British workers likely to react?
The focus of high-profile mergers and acquisitions deals is
typically on the financial details and the logistics of bringing
two organisations together, while the fate of the employees - said
to be an organisation's best asset - is often overlooked.
But failing to manage staff properly during a merger can create
problems later, says Mark Loftus, director of leadership
consultancy The Thinking Partnership, based in Long Hanborough,
Oxfordshire.
"Employees of the business being acquired tend to see the buyer as
the enemy and themselves as the losers," he says. "This can create
emotional turmoil that affects their motivation, engagement and,
ultimately, their productivity.
"If you lose 10% of productivity, the whole basis of the
acquisition is undermined."
Loftus believes it is important to show the change as a positive
move and keep staff informed.