Navigating Emotions in M&As: Role of Project Managers During Mergers and Acquisitions

Mergers and acquisitions, otherwise known as M&As, can be tumultuous times for organizations, marked by uncertainty, change, and a myriad of emotions for those impacted by these types of projects.

You may be involved in a merger and acquisition situation if your organization is in process of purchasing other companies for business and strategic reasons such as: acquiring new technologies, expanding their product lines and offerings, increasing their market share, and boosting their "client logo" visibility.

As project managers, we are not only tasked with the planning and executing aspects of a merger and acquisition, but we will also be involved in navigating the complex landscape of human emotions that arise during this period. This is an aspect of these types of challenging, yet rewarding projects that is not always discussed.

In this blog post, we'll explore the challenges project managers face when working with people during M&A activities and strategies for effectively managing emotional reactions in the workplace.

Understanding Emotional Responses: One of the first things project managers must recognize is that M&A activities can evoke a range of emotions among employees, especially those from the company that is being acquired. From anxiety and fear of job loss to excitement about new opportunities, team members may experience a rollercoaster of feelings throughout the transition process and project. It's essential to acknowledge and validate these emotions, creating a supportive environment where employees feel heard and understood. Open Communication: Effective communication is key to managing emotions during M&A activities. Project managers should strive to maintain transparent and open lines of communication with team members, regardless of if they are the new or current company, keeping them informed about the process and addressing any concerns or questions they may have. Regular updates, town hall meetings, and Q&A sessions can help alleviate uncertainty and foster trust among team members. Don't keep the acquired company team members in the dark and feel excluded.

Empathy and Compassion: Empathy is a powerful tool for project managers navigating emotional landscapes and challenging projects. Empathy is a top skill for any successful project manager. By putting themselves in the shoes of their team members of the company that is being acquired, project managers can better understand their concerns and perspectives. Compassionate leadership, characterized by kindness, understanding, and patience, can go a long way in helping team members feel supported and valued during times of change. This kindness could be repaid by increased loyalty and assistance from those team members with challenging situations or asks arise during the project.

Providing Support: As project managers, we have a responsibility to support our team members through the ups and downs of M&A activities. This may involve offering emotional support, providing resources for coping with stress, or connecting employees with relevant support services. By demonstrating empathy and actively supporting their well-being, project managers can help mitigate the negative impact of emotional upheaval on productivity and morale. Being a trusted confidant, who doesn't gossip, and supports them through this challenging time can turn into a meaningful and long-term professional connection. If team members choose to leave the company after a time, they may be willing to refer you to a new position or introduce you to people in their professional network, all because of your professional skills, empathy, and compassion during a difficult time in their professional lives. Managing Resistance: It's important to acknowledge that not all team members will embrace change and the acquisition of their company with open arms. Resistance to M&A activities from new team members is natural and should be expected. Project managers must be prepared to address resistance constructively, listening to concerns, addressing misconceptions, and involving all team members in the decision-making process whenever possible. By fostering a sense of joint ownership and involvement, project managers can help mitigate resistance and increase buy-in from team members. It can be a negative impact on the project if team members from the acquired company begin to depart prior to any knowledge transfer, requirements gathering, process mapping, end to end testing on systems is completed. They may be the only ones who understand how legacy systems operate or why a certain process was put into place.

Celebrating Wins: Amidst the challenges of M&A activities, it's essential to celebrate wins and milestones along the way. Recognizing and acknowledging the hard work and dedication of all team members can boost morale and motivation, providing a much-needed morale boost during times of uncertainty. Whether it's a successful integration milestone or a team achievement, taking the time to celebrate accomplishments can help maintain a positive atmosphere amidst the chaos of M&A activities. This can be done through a variety of ways such as town halls, meetings, email communications, and individual notes to senior leaders calling out key achievements and wins.