Want to know the challenges bedeviling NATO as it seeks to arm Ukraine? This week’s guest is as good a source as any, given how much the combination of Covid-19 and the war in Ukraine have put the focus on procurement. An area normally the “corporate equivalent of being sent to Siberia” (to quote this book) has now moved front-and-center. Triplat and the other three colleagues at the Boston Consulting Group (BCG) who collaborated on Profit from the Source emphasize the need not just to save costs, but for companies and their suppliers to join forces to optimize the innovation process together. Right now the average CEO spends no more than about 5% of his or her time on the procurement process. Since over 50% of a company’s expenditures involve suppliers, clearly a realignment of priorities is overdue.
First impressions really do matter, and the merger and acquisition (M&A) deals that receive a positive reaction on Announcement Day tend to outperform, over time, those deals where due diligence wasn’t practiced up front. Indeed, as Mark Sirower notes, in two-thirds of cases a negative initial reception is a sign that the deal will never gain momentum. What leads to success? Among the key elements is focusing on the employee experience. Smart companies get “ahead of the pain” by acknowledging that during M&A activity workers will have moved from the highest rung of Maslow’s Hierarchy of Needs (self-realization) to fearing for their material well-being, their security, i.e., the lowest, most basic rung of the ladder. In short, at a time of vast, globalized M&A deal-making, emotional intelligence has never been more important as companies navigate the emotional earthquake most employees are going to experience.
Mark L. Sirower is a leader in Deloitte’s M&A and Restructuring practice and was, previously, a global M&A leader at the Boston Consulting Group. He teaches M&A at the NYU Stern School of Business and has also authored The Synergy Trap prior to partnering with Jeffery M. Weirens on this latest book.
The correct answer to this week’s quiz is all of the above, A through C. It’s a trick question because advancing as well as protecting one’s career is a tricky proposition. It’s tempting to say A, competency, is the single most important quality to possess. After all, what’s more fundamental than can you do the job well? And yet, as a university department chair said to me in an interview years ago: “We know you’ll publish and be good in the classroom. What we want to know is can we stand to go to lunch with you for the next 20 or more years?” So in lots of ways, B, compatibility, can you get along with others, proves more decisive in one’s career. Finally, don’t underestimate option C, commitment. Sure, on day one you want to do the job well and get along with others. After three to five years into the job, however, when you’ve been disappointed by sundry developments within your department, can you still summon the energy to care? It’s hard to fake being excited to be there. They give Oscars in Hollywood for playing a role, but you may not be an A-list actor day in and day out.
Released today: episode #62 of my podcast series “Dan Hill’s EQ Spotlight,” featuring Gorick Ng discussing The Unspoken Rules: Secrets to Starting Your Career Off Right. Click here to get to the new episode.
Gorick Ng is a career adviser at Harvard College. He’s also managed new employees at the Boston Consulting Group, worked in investment banking at Credit Suisse, and been a researcher with the Managing the Future of Work project at Harvard Business School. Gorick’s book has been featured on “The Today Show,” CNBC, and in the New York Times, Wall Street Journal, and Fast Company.