In his book ‘The Human Side of M&A: How CEO’s Leverage the Most Important Asset in Deal Making,’ Dennis Carey gives advice on merger building:
“You will be building your merger or acquisition on a shaky foundation unless a few critical elements pass muster before the transaction is finalized. Specifically you will need to ensure that:
1. The strategy is sound. Whether the goal is expanding markets, products or consolidation, make sure that M&A is the right solution;
2. There are no skeletons in the closet. Make certain that you are not inheriting any fraud, legal or accounting issues that could spell disaster for any deal. Be diligent about due diligence and;
3. The human capital picture is thoroughly understood. It is critical to follow a separate process that will uncover precisely what you will be getting in your new management team; a picture that will not be fleshed out sufficiently as a result of the normal due diligence process that focuses on financial and legal issues.”
Archive for June, 2010
Dennis Carey and M&A Activity
Wednesday, June 30th, 2010Dennis Carey and the 360 Evaluation Measurement Tool
Sunday, June 20th, 2010
Author of various books and articles on business and management, Dennis Carey speaks of “accurate appraisal of talent [being] a critical ingredient of business success.” A method that is popular is the 360 evaluation in which “managers, peers and direct reports offer their confidential opinion of a leader’s competencies, strengths and weaknesses.” Carey wants to know though, “how honest is a 360?”
Dennis Carey explains, “My co-author and Wharton professor, Dr. Michael Useem and I will look at the 360 in an upcoming article in the Harvard Business Review. Having done thousands of appraisals in my career as an executive recruiter, the most interesting result of the research for me was how predictably biased 360 evaluations are. Because it’s so easy to know the source of the negative feedback, it’s safer to be politically correct to soften a judgment, to be nice.”
Dennis Carey adds, “Think of the reaction our article will receive from organizations that have based promotions on 360 evaluations. Now, be nice.”