Strategic Plan

A Merger “Like No Other”

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In mid-April of 2020, there was a formal announcement regarding the completed merger between two HR technology-based software companies, Kronos Incorporated and Ultimate Software. Given the state of the pandemic-related chaos impacting organizations across the globe, it seemed a bit unusual to find these two companies proceeding in, what appeared to be, a business as usual approach. As noted in the announcement, the CEO of the combined organizations acknowledged the impact of these turbulent times, while pointing out the successful collaborative efforts of both companies to continue providing HR-focused customer support. While the announcement of the completed merger appeared in April, the plans for that merger were identified earlier on, as noted in this analysis, published this past February. There is no doubt that the negotiations over the strategic alliance happened over a lengthy period of time, well in advance of any public communications that may have appeared this year.

On the surface, this merger is indeed “like no other.” HR technology-based tools are usually targeted for specific tactical or operational functions. Kronos Incorporated provides workforce management tools, such as time and attendance tracking. Ultimate Software focuses on the transactional payroll side of HR, along with talent management software, which includes a very strong focus on the Canadian HR market. Each party brings with it a separate puzzle piece. Once they are put together, they form a completely new entity, with a new name, in order to provide a wide range of HR software applications. From our strategic human resource planning studies, we know that this type of merger gives us a real-life example of a consolidation.

With this type of merger, there are multiple impacts on both internal and external stakeholders. While this is an exciting opportunity to increase the strength of HR technology-based systems, a consolidation of this kind comes with risks regarding market competitiveness and customer service. As noted in the analysis provided by the US-based Society for Human Resource Management (SHRM), HR customers may find increased competition, decreased availability of what they are used to, and having to go outside their existing HR technology-based ecosystem.

The reality for success, internally and externally, remains to be seen. One would hope that, as these two merging organizations are HR-based technology companies, they will proceed along the rocky path to successful consolidation with sound HR practices and strategic plans in place.

Discussion Questions:

  1. What are the cultural implications of this type of merger (consolidation) between these two technology-based HR software providers?
  2. Based on the information provided so far, what types of positions or departments might be declared redundant as a result of this consolidation, even with plans to increase the number of employees over the next three years?
  3. In your opinion, what type of restructuring plans should be put into place?
  4. What benefits does this merger offer to the HR profession?

The Power of Three

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Vision. Mission. Values. These three elements form the fundamental pillars for an organization’s strategic plan. When we look at each of these as separate elements, they have inherent power. Vision is the big idea that drives and pulls the organization into its future self. Mission articulates the purpose or the reason for being in the organizational marketplace. Values are the beliefs upon which the organization exists in order to represent itself with its moral, ethical, and social character.

When these three separate elements are joined together, their power becomes solidified. Like a three-legged stool, their strength is reinforced through their reliance on each other. One leg does not function without the other two, and all three provide the basis of support for the organization’s success. Should one of the legs be weakened or break, the entire entity will topple over.

An example of how the strength of these elements work together—to support organizational and human resources success—can be found in a short interview with the CEO and President of Schneider Electric, Annette Clayton.

Click here to read the interview with CEO Clayton.

Click here to find out more about Schneider Electric.

As noted in the CEO’s responses, Schneider Electric has not only built its award-winning success on the “highest levels of business integrity,” it is deeply committed to its “people strategy,” so it can remain competitive within the industry, and future-focused to achieve its vision. As the organizational leader, the CEO can clearly articulate how organizational values shape her decision-making processes. It is also interesting to note how critical the role of Human Resources is, not only as a partner to the CEO, but also as a leadership champion for successful changes in implementing its strategic commitments to its people.

Discussion Questions:

  1. How can Human Resources use organizational values in the development of a “people strategy”?
  2. Think about your own work experiences. How did an organization’s vision, mission, and values impact you as an employee? Were these elements evident in the workplace? What advice would you give to your employer to change or improve the visibility and impact of the organization’s vision, mission, and values?

Perfection Can Wait

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A red button with the word Action on it, representing the need to act to affect change, achieve a goal or take a stand for what you believe in
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“Nothing kills progress like brilliant strategy.”

This quote is from the book, Bet on Me, by Canadian business leader Annette Verschure, which explores the effective implementation of leadership strategies.

Canadian Business recently published an excerpt which provides an interesting insight into the link between the need for a plan and the need for action. Verschure argues that the effective organizational leader must commit to action instead of waiting around for the perfection of a fully realized strategic plan.

Click here to read the excerpt.

While Vershcure focuses on the need for decisive action, this does not mean that there is no need for a big picture vision. In fact, it is precisely the big goal, the big idea, which provides the target for setting the leadership and organizational sights for the future. According to Verschure, the risk of waiting for the absolute perfection of every detail of a strategic plan to be in place before taking action can stop the process from launching in the first place.

How many of us get stuck by the need for perfection before we decide to move forward? It is easy to get caught in a cycle of paralysis because the fear of moving forward is greater than the risk of standing still. We need a big push to stop that cycle and just get started.

For organizations, the same principle applies. At some point, the leader must determine that waiting for the perfect plan will stifle the benefits of moving forward. With the big-picture goal in sight, the action plan can start the organization moving in the right direction and prepare for adjustments along the way.

Perfection is not necessary. Good enough should suffice.

If it is good enough, it means that it is time to go.

Discussion Questions:

  1. How does having a plan force you to act, or prevent you from acting?
  2. What steps are necessary to ensure that the organization is not stuck in constant planning?
  3. What role does timing play for effective implementation of an action plan?
  4. From your reading of the excerpt, why is the development of effective relationships so critical in ensuring effective implementation of an action plan?