Connect with us

Business

Mergers & Acquisitions Playbook: Driving value through efficient HRM for your business

Avatar photo

Published

on

Mergers & Acquisitions Playbook: Driving value through efficient HRM for your business

Mergers & acquisitions (M&As) are a powerful means of growth at scale and speed for businesses, and their popularity (especially in tech and manufacturing) is only increasing.

But M&As aren’t without their complications: somewhere between 70 to 90 per cent of attempted mergers and acquisitions fail.

Even with this high failure rate, the average amount of time to finalise a merger and acquisition has only been rising. Delays are rife, and it’s important to know that getting the deal signed off is only the first step in the process. Ultimately, the trick to aligning two organisations with different policies, systems, cultures and ways of working is about laying the groundwork early in this process to avoid later stresses. 

M&As fail for myriad reasons. Valuations are often misaligned, supply chain assessments can discover faults, and regulatory issues can halt the process. But the challenges of M&As aren’t all technical – often, what really matters in M&As is the interactions and people that guide them.

HR can provide a strategic advantage for companies looking to achieve this synergy: During periods of change and disruption, it’s more important than ever that employees feel heard and included, and informed. Too often, the opposite happens during an M&A.

It’s not just employees who benefit from efficient HR. Management also gains from close collaboration with human resources during the M&A process. Without strong HR input into the planning and strategy process, personnel – often a business’s most valuable asset – will be affected, making potential risks harder to notice and failures more difficult to manage. 

It’s useful, then, to consider including HR teams as one of the leaders in the M&A audit. Find the point at which your businesses differ the most – whether it’s payroll, workplace law compliance, culture or ways of working – and identify the key steps to achieving harmony. Issues can arise from differences between staff members in pay and conditions, especially where, post-M&A, equal roles do not hold equal pay. The hangover of varying levels of pay often lingers long after two companies have become one and can create major problems if left unchecked. 

Because of this, managers of payroll and HR teams have an obligation to identify major differences in pay and conditions and the reasons why they exist. Sometimes there is a valid justification for the so-called discrepancy. People with similar titles in mergers can often carry out vastly different tasks, justifying different pay and conditions. But where inconsistencies exist that do not warrant rhyme or reason, managers must take action to mitigate and resolve them.

Advertisement
Submit your 2022 Austin Neighborhood Feedback

Communication is the vital next step for HR teams to manage the change brought about by M&As. It’s imperative that employees are told what’s going on, how they will be impacted, and have an opportunity to voice their wants, needs and concerns. A dedicated point of contact in HR for employees is often invaluable in this process: employees with a single point of HR contact are twice as likely to find HR ‘value-promoting’ as those with multiple HR contacts and five times as likely than those without. 

As the communication process is streamlined and employees begin to understand the business operations better, it’s time to address the dynamics and culture. Organisations can merge with somewhat different understandings of what makes a business work. But if done right, there is a great opportunity for collaboration, idea-sharing and testing to find the best path for a new organisation. Finding this alignment of understanding allows for better communication and fosters long-term worker satisfaction. 

It’s important to include employees in the process of merging cultures. The only way to find commonalities and opportunities for learning between any group is through collaboration – whether it be formal or informal. It’s often the case that businesses are able to learn new and improved processes from one another and invest in streamlined tools to drive further efficiency and growth. Group training can be a great way to both align the business strategy and develop new bonds between employees. It’s also great to set time aside for group catch-ups, allowing for greater connections and expediting the integration process. 

Done early and efficiently, taking early action in an M&A will ensure a stronger and more dynamic business with improved assets, processes and culture. But it begs the question: How can all of this be achieved while there are still two businesses to run, work to be done, and agreements to be finalised? The technical aspects of managing mergers is often where businesses hit a stumbling block in the process. 

If businesses want to focus on the bigger picture of a merger, it’s worth considering outsourcing and automating some of the details in the process that can chew up valuable time. Looking at the tech-driven solutions to managing mergers to adapt efficiently and easily. This can include managing and automating payroll processes, integrating new ways of working, managing workplace law compliance and more. Many businesses will only attempt one merger or acquisition in their lifespan, and the ability to create efficiencies is key to their overall success.

Going into M&As can seem daunting at first, but they ultimately serve as an opportunity to find optimal solutions and reinvent a business. It stands a business in great stead to set a plan early, communicate that plan clearly, and implement it efficiently – but also be willing to adapt. There’s no one way to integrate a merger or acquisition, but one of the key success factors is integrating HR from the start of the process – happy and motivated employees will foster business success in the short and long-term future. 

Visit ADP. 

Keep up to date with our stories on LinkedIn, Twitter, Facebook and Instagram.

Read More

Advertisement
Submit your 2022 Austin Neighborhood Feedback

Continue Reading
Advertisement
Click to comment

Business

Amazon won’t have to pay hundreds of millions in back taxes after winning EU case

Avatar photo

Published

on

Amazon won’t have to pay hundreds of millions in back taxes after winning EU case

LONDON (AP) — Amazon won’t have to pay about 250 million euros ($273 million) in back taxes after European Union judges ruled in favor of the U.S. e-commerce giant Thursday, dealing a defeat to the 27-nation bloc in its efforts to tackle corporate tax avoidance.

The ruling by the EU’s top court is final, ending the long-running legal battle over tax arrangements between Amazon and Luxembourg’s government and marking a further setback for a crackdown by antitrust chief Margrethe Vestager.

The Court of Justice backed a 2021 decision by judges in a lower court who sided with Amazon, saying the European Commission, the EU’s executive branch, had not proved its case that Amazon received illegal state support.

“The Court of Justice confirms that the Commission has not established that the tax ruling given to Amazon by Luxembourg was a State aid that was incompatible with the internal market” of the EU, the court said in a press release.

Amazon welcomed the ruling, saying it confirms that the company “followed all applicable laws and received no special treatment.”

“We look forward to continuing to focus on delivering for our customers across Europe,” the company said in a statement.

The commission said it “will carefully study the judgment and assess its implications.”

The case dates back to 2017, when Vestager charged Amazon with unfairly profiting from special low tax conditions since 2003 in tiny Luxembourg, where its European headquarters are based. As a result, almost three-quarters of Amazon’s profits in the EU were not taxed, she said.

Advertisement
Submit your 2022 Austin Neighborhood Feedback

The EU has taken aim at deals between individual countries and companies used to lure foreign multinationals in search of a place to establish their EU headquarters. The practice led to EU states competing with each other and multinationals playing them off one another.

Read More

Continue Reading

Business

Tesla autopilot recalls: 2 million vehicles need to have their defective systems fixed

Avatar photo

Published

on

Tesla autopilot recalls: 2 million vehicles need to have their defective systems fixed

DETROIT (AP) — Tesla is recalling nearly all vehicles sold in the U.S., more than 2 million, to update software and fix a defective system that’s supposed to ensure drivers are paying attention when using Autopilot.

Documents posted Wednesday by U.S. safety regulators say the update will increase warnings and alerts to drivers and even limit the areas where basic versions of Autopilot can operate.

The recall comes after a two-year investigation by the National Highway Traffic Safety Administration into a series of crashes that happened while the Autopilot partially automated driving system was in use. Some were deadly.

The agency says its investigation found Autopilot’s method of making sure that drivers are paying attention can be inadequate and can lead to “foreseeable misuse of the system.”

The added controls and alerts will “further encourage the driver to adhere to their continuous driving responsibility,” the documents said.

But safety experts said that, while the recall is a good step, it still makes the driver responsible and doesn’t fix the underlying problem that Tesla’s automated systems have with spotting and stopping for obstacles in their path.

The recall covers models Y, S, 3 and X produced between Oct. 5, 2012, and Dec. 7 of this year. The update was to be sent to certain affected vehicles on Tuesday, with the rest getting it later.

Shares of Tesla slid more than 3% in earlier trading Wednesday but recovered amid a broad stock market rally to end the day up 1%.

Advertisement
Submit your 2022 Austin Neighborhood Feedback

The attempt to address the flaws in Autopilot seemed like a case of too little, too late to Dillon Angulo, who was seriously injured in 2019 crash involving a Tesla that was using the technology along a rural stretch of Florida highway where the software isn’t supposed to be deployed.

“This technology is not safe, we have to get it off the road,” said Angulo, who is suing Tesla as he recovers from injuries that included brain trauma and broken bones. “The government has to do something about it. We can’t be experimenting like this.”

Autopilot includes features called Autosteer and Traffic Aware Cruise Control, with Autosteer intended for use on limited access freeways when it’s not operating with a more sophisticated feature called Autosteer on City Streets.

The software update will limit where Autosteer can be used. “If the driver attempts to engage Autosteer when conditions are not met for engagement, the feature will alert the driver it is unavailable through visual and audible alerts, and Autosteer will not engage,” the recall documents said.

Depending on a Tesla’s hardware, the added controls include “increasing prominence” of visual alerts, simplifying how Autosteer is turned on and off, and additional checks on whether Autosteer is being used outside of controlled access roads and when approaching traffic control devices. A driver could be suspended from using Autosteer if they repeatedly fail “to demonstrate continuous and sustained driving responsibility,” the documents say.

According to recall documents, agency investigators met with Tesla starting in October to explain “tentative conclusions” about the fixing the monitoring system. Tesla did not concur with NHTSA’s analysis but agreed to the recall on Dec. 5 in an effort to resolve the investigation.

Auto safety advocates for years have been calling for stronger regulation of the driver monitoring system, which mainly detects whether a driver’s hands are on the steering wheel. They have called for cameras to make sure a driver is paying attention, which are used by other automakers with similar systems.

Philip Koopman, a professor of electrical and computer engineering at Carnegie Mellon University who studies autonomous vehicle safety, called the software update a compromise that doesn’t address a lack of night vision cameras to watch drivers’ eyes, as well as Teslas failing to spot and stop for obstacles.

“The compromise is disappointing because it does not fix the problem that the older cars do not have adequate hardware for driver monitoring,” Koopman said.

Advertisement
Submit your 2022 Austin Neighborhood Feedback

Koopman and Michael Brooks, executive director of the nonprofit Center for Auto Safety, contend that crashing into emergency vehicles is a safety defect that isn’t addressed. “It’s not digging at the root of what the investigation is looking at,” Brooks said. “It’s not answering the question of why are Teslas on Autopilot not detecting and responding to emergency activity?”

Koopman said NHTSA apparently decided that the software change was the most it could get from the company, “and the benefits of doing this now outweigh the costs of spending another year wrangling with Tesla.”

In its statement Wednesday, NHTSA said the investigation remains open “as we monitor the efficacy of Tesla’s remedies and continue to work with the automaker to ensure the highest level of safety.”

Autopilot can steer, accelerate and brake automatically in its lane, but is a driver-assist system and cannot drive itself, despite its name. Independent tests have found that the monitoring system is easy to fool, so much that drivers have been caught while driving drunk or even sitting in the back seat.

In its defect report filed with the safety agency, Tesla said Autopilot’s controls “may not be sufficient to prevent driver misuse.”

A message was left early Wednesday seeking further comment from the Austin, Texas, company.

Tesla says on its website that Autopilot and a more sophisticated Full Self Driving system are meant to help drivers who have to be ready to intervene at all times. Full Self Driving is being tested by Tesla owners on public roads.

In a statement posted Monday on X, formerly Twitter, Tesla said safety is stronger when Autopilot is engaged.

NHTSA has dispatched investigators to 35 Tesla crashes since 2016 in which the agency suspects the vehicles were running on an automated system. At least 17 people have been killed.

Advertisement
Submit your 2022 Austin Neighborhood Feedback

The investigations are part of a larger probe by the NHTSA into multiple instances of Teslas using Autopilot crashing into emergency vehicles. NHTSA has become more aggressive in pursuing safety problems with Teslas, including a recall of Full Self Driving software.

In May, Transportation Secretary Pete Buttigieg, whose department includes NHTSA, said Tesla shouldn’t be calling the system Autopilot because it can’t drive itself.

—-

AP Technology Writer Michael Liedtke contributed to this story.

Read More

Continue Reading

Business

Why Was Sam Altman Fired? Possible Ties to China D2 (Double Dragon) Data from Hackers

Avatar photo

Published

on

Theories are going around the internet why Sam Altman was fired. On an insider tech forum (Blind) – one person claims to know by third-hand account and how this news will trickle into the media over the next couple of weeks.

It’s said OpenAI had been using data from D2 to train its AI models, which includes GPT-4. This data was obtained through a hidden business contract with a D2 shell company called Whitefly, which was based in Singapore. This D2 group has the largest and biggest crawling/indexing/scanning capacity in the world 10x more than Alphabet Inc (Google), hence the deal so Open AI could get their hands on vast quantities of data for training after exhausting their other options.

The Chinese government became aware of this arrangement and raised concerns with the Biden administration. As a result, the NSA launched an investigation, which confirmed that OpenAI had been using data from D2. Satya Nadella, the CEO of Microsoft, which is a major investor in OpenAI, was informed of the findings and ordered Altman’s removal.

There was also suggestion that Altman refused to disclose this information to the OpenAI board. This lack of candor ultimately led to his dismissal and is what the board publicly alluded to when they said “not consistently candid in his communications with the board.”

To summarize what happened with Sam Altman’s firing:

1. Sam Altman was removed from OpenAI due to his ties to a Chinese cyber army group.

2.OpenAI had been using data from D2 to train its AI models.

3. The Chinese government raised concerns about this arrangement with the Biden administration.

Advertisement
Submit your 2022 Austin Neighborhood Feedback

4. The NSA launched an investigation, which confirmed OpenAI’s use of D2 data.

5. Satya Nadella ordered Altman’s removal after being informed of the findings.

6. Altman refused to disclose this information to the OpenAI board.

 

We’ll see in the next couple of weeks if this story holds up or not.

Continue Reading