reduce costs in people last

PEOPLE LAST

www.nunnbetterconsulting.com

REDUCE COSTS IN

Better Consulting

When integrating an acquired Small or Medium sized Business (SMB)…

Letting people goSHOULD BE ONE OF YOUR LAST OPTIONS

DEFINITIONS

Synergy:Combining two organizations so that the combined (integrated) entity is greater than they were before

Integration


“Wearing Many Hats”An expression meaning that a single staff member has numerous roles/responsibilitiesTypical in in small businesses

Development

Tech Support

Training


In a growing small business, how many people wear a single hat?

As a business grows, requirements grow faster than the ability to recruit


ALMOST NOBODY

FIRST ROUND.COM STARTUP SURVEY“The Number 1 concern [of startups] remains

finding and hiring the best talent.

This is perceived as more a 'make or break' prospect

than competition and customer churn”http://stateofstartups.firstround.com/#highlights


ACQUISITIONS ARE DONE TO ACHIEVE SYNERGIES

Combining technology

Combining talent

Increased revenues

Reducing costs


REDUCING COSTS

• “Reducing Costs”• The scary synergy that grabs the headlines• Usually associated with reducingthe number of staff

• With Small and Medium Businesses you should choose this last


NOW YOU’VE ACQUIRED, YOU’RE BIGGER

You need people to wear less hatsYou’re going to grow, further

Won’t you need more staff?


WHAT HAVE YOU ACQUIRED?

•With an SMB* acquisition you usually want one, or both of these•Expertise in Market•Expertise in Technology

•Without the people, what have you got?

* Small or Medium Size Business


4 REASONS TO KEEP YOUR STAFF

1. You acquired for expertise.People, not objects nor market share have this

2. If you’re growing, you will have a need for people who understand your business

3. If you keep the number of staff low you’re dependent upon a few for critical issues

4. If you don’t show loyalty to acquired staff, you won’t get it from them either



You’re in a small business that has forward motion, and is growing

You’re acquired by a larger business10% of your colleagues are let go

How do you feel about the new business owner’s strategies?

THE PUNCHLINE

•To grow a business • You need loyalty, which requires trust

•Have you planned how you going to gain the trust of the people in an acquired company?

QUESTION FOR THE DAY


THE PUNCHLINE

•You will need the expertise•You will need the manpower•You will need their trust

•Demonstrate your trust in the peoplewho make up your staff

•Make layoffs a last option

QUESTION FOR THE DAY


ABOUT NUNN BETTER CONSULTING

Helping small and medium sized businesses with Special Projects

[email protected]

Better Consulting

We help SMBs through their Special Projects• Whether it be a phone call or an onsite engagement, we’re here to help you