Navigating change in M&A: Criteria for M&A success

In this episode, we enjoyed the charismatic presence of Tina Vas, SVP and Global HR Head of Sagility. Tina Vas is celebrated as one of the Top 30 Talent Leaders of 2024 by Forbes and Indeed, boasting over two decades of experience in human resources. She has held senior positions at leading companies, including HGS, Brillio, Tavant, and Cognizant. Recognized as a top HR innovator in 2023, Tina is passionate about leveraging AI and HR technology to drive innovation in HR processes. She is a strong advocate for increasing the representation of women leaders in the industry.

Can you walk us through HR’s role in an M&A process, starting from the identification stage?

HR plays a crucial role in M&A by partnering closely with financial and business experts to assess cultural and capability fitment. While the experts identify targets, HR evaluates whether the target aligns culturally and in terms of capability maturity. They consider the reasons for the M&A, such as geographic expansion, capability addition, or scaling, ensuring that the acquisition aligns with the organization’s goals and is sustainable in the long term.

What if there is limited cultural alignment between companies during integration, especially when culture is difficult to navigate?

One of the critical aspects before an M&A is ownership. There must be a business leader who fully buys into the process and owns it. The M&A shouldn’t be forced on them for financial or other short-term reasons. Once ownership is established, cultural alignment is key. It’s like a marriage—merging two different DNAs and values. You need to act as a change agent, guide them through the process, and balance preserving their uniqueness with integrating them into the larger organization. Communication is essential, often requiring repetition for clarity and alignment.

How do you manage change within your organization and the one merging with it during an M&A?

To ensure success in M&As, transparency from the start is key—both parties should understand why the merger is happening and how it benefits both sides. It’s essential to show that everyone involved plays a critical role in success, which boosts engagement. Appreciating diversity and ensuring alignment across departments like sales and support is equally important. Lastly, having a SWOT team to measure progress through multiple lenses helps track and ensure the journey’s success.

Can you elaborate on the criteria from an HR perspective?

When managing mergers and acquisitions (M&A), the key is to ensure the market sees the growth story, such as increased revenue. On the technology front, upgrading systems to achieve the necessary certifications is essential. From a people perspective, you may need to hire critical talent and involve leaders from both sides to drive change and overcome resistance. Supporting departments, like HR and policies, should be systematically onboarded without causing disruption.

Communication is crucial, especially during role sizing, which can be sensitive. Convincing influential leaders early helps them become advocates for smoother transitions. Additionally, adopting good practices from the acquired company shows respect and fosters a positive, collaborative culture.

How to maintain consistent behavior and treatment after a partnership or acquisition for long-term success?

In most of our mergers and acquisitions (M&As), we ensure that critical people stay on, especially when leadership is a key factor. It depends on the purpose of the M&A—if it’s for expanding on existing strengths, you may not need two leaders. But if leadership is crucial, you retain them.

To maintain momentum beyond the initial excitement, we focus on keeping the vision clear and showing everyone how vital their role is. We celebrate smaller milestones, like at six months or a year, and adapt celebrations based on the type of acquisition, whether tech or BPM. We also regularly publish results to show progress and build credibility in the market. This helps ensure success is recognized at all levels.

What insights can you share about your rapid hiring process, including the context of the region, volumes involved, and achieving offers in 90 minutes? 

When I assumed my role two and a half years ago, a significant challenge was addressing seasonal hiring in the BPM industry in the U.S. Traditional methods, including human management and bots, weren’t effective due to choke points that caused candidate drop-off. To tackle this, we formed a collaborative initiative involving technology, HR, and operations teams.

Our goal was to enhance the candidate experience from the moment they interacted with our ads. We focused on engagement, utilizing humor and videos to maintain interest. We implemented a “knockout” process to ensure candidates met basic criteria, followed by clear communication about the job and the company culture.

Once candidates passed initial assessments, we checked their readiness for video interviews. Our virtual reception greeted candidates warmly, enhancing their engagement as they waited for interviews with both a recruiter and an operations leader. This dual approach allowed us to assess body language and dive deeper based on assessment scores.

Post-interview, candidates entered a waiting area, and successful applicants moved to a “celebration room” where job offers were generated on the spot. This streamlined process allowed candidates to leave with a job offer in hand, significantly improving our seasonal hiring effectiveness.

Does your recruitment process utilize generic questions, or are they tailored to the specific role or candidate?

In our hiring process, the required skills vary by line of business. Some roles prioritize empathy, while others focus more on technical skills. For instance, during interviews, we assess candidates’ responses to unconventional situations. For example, if an interviewer apologizes for being late due to an accident, a candidate showing empathy by asking if the interviewer is okay demonstrates the desired quality. This innovative approach helps us evaluate candidates effectively without revealing all our methods.

What factors influenced the decision to tailor job offers to individual candidates, considering their diverse experiences and backgrounds?

The rates are determined by your skill level. The process is streamlined, resembling a factory line. To ensure speed, candidates need to have their formats and frameworks ready. When an interview occurs, the expected offer is predefined, and these rates are non-negotiable.

What led you to become the global head of HR at Sagility, particularly in relation to women in leadership and diversity?

In the past, conversations about diversity in the workplace were rarely prioritized. Coming from an enabling family of working women, I was supported by my husband and had a positive personal space. Professionally, I faced challenges, especially as a young woman in a male-dominated field. For instance, during my first job as a management trainee at a courier company, I navigated the discomfort of limited facilities by planning my sales calls strategically, highlighting the importance of humor and resilience in overcoming adversity.

As I progressed in my career, particularly when balancing motherhood with work, I focused on establishing my reliability. I ensured that my absence for personal reasons didn’t compromise my professional commitments. By preparing the organization in advance and maintaining open communication, I aimed to dispel the stereotype that women are less reliable in the workplace. Ultimately, my journey was supported by colleagues who championed women’s contributions, which played a significant role in my success.