technology m&ainfo.haygroupupdate.com/rs/494-vuc-482/images/tech_m&a.pdf · the increasing...

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SOLUTIONS n Leadership assessment n Succession management n Executive benchmarking n Culture identification Technology M&A In technology, human capital is your strongest asset. With unstable global markets, 2016 continues the torrid pace of M&A in the Technology sector. Mergers, strategic acquisitions, and “tuck-ins” are fueled by $350 billion in cash and securities on hand at the top 25 technology companies and record levels of private equity dry powder waiting to be deployed. The mix of cultures in the increasing amount of cross-border M&A deals pose particular challenges in terms of capturing, retaining, and unlocking the value of talent. Integration must address the importance of people and use data and logic to protect against negative internal issues, mass defections of talent, and too much focus on positions and politics. M&A is not one size fits all—Korn Ferry has an unmatched track record of guiding clients through M&A integrations, no matter what the reason, and capturing the value of people. We have found the key to a successful merger is to quickly identify the talent you need, the talent you have, and how to close the gap, all while retaining your top talent and high potentials. As these organization decisions are in process, being intentional about culture integration is also critical. Most importantly, our ability to benchmark executives in the market sets us apart. Client case study: Navigating succession and talent decisions. For a newly combined $16 billion global technology organization, Korn Ferry worked with the Board, the CEO, and CHRO to clearly articulate the leadership attributes needed to achieve their new strategy, assess the top 70 leaders against that profile, as well as best-in-class executives outside of the organization. This enabled the company to identify areas of competitive strength as well as gaps in talent across both organizations. It led to more informed decisions around organizational structure, talent needs, and helped build a succession roadmap for critical positions. 1 Maximizing your (talent) investment. Exec 6 Exec 9 Exec 10 Exec 5 Exec 3 GM 2 GM 1 Exec 11 Fit to Critical Experiences Required Fit to Leadership Capabilities Required Figure 1 Capabilities Matrix President 2 President 1 CEO LOW HIGH LOW HIGH

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Page 1: Technology M&Ainfo.haygroupupdate.com/rs/494-VUC-482/images/Tech_M&A.pdf · the increasing amount of cross-border M&A deals pose particular challenges in terms of capturing, retaining,

SOLUTIONS

n Leadership assessment

n Succession management

n Executive benchmarking

n Culture identification

Technology M&A

In technology, human capital is your strongest asset.With unstable global markets, 2016 continues the torrid pace of

M&A in the Technology sector. Mergers, strategic acquisitions, and

“tuck-ins” are fueled by $350 billion in cash and securities on hand

at the top 25 technology companies and record levels of private

equity dry powder waiting to be deployed. The mix of cultures in

the increasing amount of cross-border M&A deals pose particular

challenges in terms of capturing, retaining, and unlocking the value

of talent. Integration must address the importance of people and

use data and logic to protect against negative internal issues, mass

defections of talent, and too much focus on positions and politics.

M&A is not one size fits all—Korn Ferry has an unmatched track

record of guiding clients through M&A integrations, no matter what

the reason, and capturing the value of people. We have found the

key to a successful merger is to quickly identify the talent you need,

the talent you have, and how to close the gap, all while retaining

your top talent and high potentials. As these organization decisions

are in process, being intentional about culture integration is also

critical. Most importantly, our ability to benchmark executives in the

market sets us apart.

Client case study: Navigating successionand talent decisions.For a newly combined $16 billion global technology organization,

Korn Ferry worked with the Board, the CEO, and CHRO to clearly

articulate the leadership attributes needed to achieve their new

strategy, assess the top 70 leaders against that profile, as well as

best-in-class executives outside of the organization. This enabled

the company to identify areas of competitive strength as well as

gaps in talent across both organizations. It led to more informed

decisions around organizational structure, talent needs, and helped

build a succession roadmap for critical positions.

1

Maximizing your (talent) investment.

Exec 6Exec 9

Exec 10

Exec 5

Exec 3

GM 2

GM 1

Exec 11

Fit

to

Cri

tica

l Exp

erie

nces

Req

uire

d

Fit to Leadership Capabilities Required

Figure 1Capabilities Matrix

President 2President 1

CEO

LOW HIGH

LOW

HIG

H

Page 2: Technology M&Ainfo.haygroupupdate.com/rs/494-VUC-482/images/Tech_M&A.pdf · the increasing amount of cross-border M&A deals pose particular challenges in terms of capturing, retaining,

Client case study: The right leaders,ready when you need them.

Korn Ferry assessed the top 100 executives worldwide at

a European technology company and created personal

development plans for each executive. This gave the

organization visibility into their talent pool, succession

pipeline, and global leadership capability. The assessment

data helped the organization implement focused, targeted

development. It also provided their high-potential leaders

with a meaningful development experience and sent the

message that the company values and creates opportunity

for their key talent—an important retention tool. The

investment further proved critical when the client merged

with a major competitor and used assessment data to

quickly organize the NewCo around the ideal people and

teams for the combined strategy.

GLOBAL TECHNOLOGY COMPANY OUTCOME.

A clear articulation of what leadership attributes are needed to:

n Achieve the integration strategy.

n Obtain objective data on talent new to the organization.

n Accelerate leadership development for critical talent and top executives.

n Develop a succession slate that allowed for growth and risk management.

2

Current Role

Presidentand CEO

CFO

CIO

CHRO

President,Business Unit

SVP, WWOperations

SVP Corp Devand Strategy

ProvidesStrategic

Vision

E�ectivelyLeads

Change

DevelopsExecutive

Talent

Leadership Skills Assessment Leadership Experience Assessment

DeliversInnovation

DrivesExecution:Persistent

and Resilient

Has LedComplex

Business withBroad Scope

and Scale

Opened NewMarkets/Channels/Products

Respect fromExternal:Partners,

Customers,etc.

Has LedSignificant

Transformation

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3

5

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3

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5

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2

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Figure 2Skills Inventory Driving Deployment Programs

Page 3: Technology M&Ainfo.haygroupupdate.com/rs/494-VUC-482/images/Tech_M&A.pdf · the increasing amount of cross-border M&A deals pose particular challenges in terms of capturing, retaining,

Jeff HockingRegional Market Leader, North America, Technology+1 415 288 [email protected]

Michael LynchNorth America Sector Leader, Systems & Devices+1 415 288 [email protected]

Jim AggenManaging Principal+1 310 226 [email protected]

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Experienced consultants. Korn Ferry’s experienced consultants have worked

in and with the world’s leading companies. No other

firm can assess talent against your ideal criteria,

compare best-in-class talent in the market and

provide integrated compensation advisory through

our acquisition of Hay Group. Our global team uses

consistent methodology to assess locally and be in

sync with your strategy and culture.

© Korn Ferry 2016. All right reserved.

About Korn Ferry Korn Ferry is the preeminent global people and organizational advisory firm. We help leaders, organizations, and societies succeed by releasing the full power and potential of people. Our nearly 7,000 colleagues deliver services through our Executive Search, Hay Group and Futurestep divisions. Visit kornferry.com for more information.