People are at the core of Knowledge Management (KM). Mergers and Acquisitions thrive and survive on the strength of how corporate cultures and its people can be meshed together. A sound Human Capital Management strategy will be an integral part of an overall KM strategy to be leveraged in an M&A transaction. Understanding who are the critical knowledge holders and there relationships through Knowledge Mapping is the beginning of understanding roles, responsibilities and work products that the various employees perform throhghout the organization.This understanding will lead to determining which positions and personnel perform duplicate functions, which will lead to knowing the employees that should be terminated (better yet receive a package and convinced to leave!). Not only do you have to determine which personnel perform duplicate functions, but also who is more valuable through his/her experience, education, and importance to the organization going forward. The Human Capital Management Strategy is also an investment in employee selection and development. This contributes to the organization meeting its goals and objectives of not only the merger but for the organization on an on going basis.
Another aspect to Human Capital Management that we must keep in mind is that it can be the catalyst to increased adaptability, enhanced worker performance and with the current economic climate, having the ability to do more with your existing personnel resources.
Touchy issue, but as a business owner, very important to keep an eye on. Redundancy in human capital directly translates to spending more when we all are trying to spend less.