The PANKHURI Model

Role of Human Resources in Merger & Acquisition

The Challenge

More than often we believe the role of HR as a function is similar in all kinds of Mergers and Acquisition and thereby often miss the opportunity to optimize the idea of any M&A

Reference

Whispers of the Devil in an Angel (Publication >> Book)

PANKHURI is a process that addresses all the major issues that arise during the merger process. It helps the merger managers understand the importance of a particular issue during a merger by rating the issue on the following scale:

  • Not Critical (!): The issue is not a burning one in the short term.
  • Critical (!!): The issue is sensitive either in the short term or long term, and managers should take care to handle it on time.
  • Highly Critical (!!!): The issue is highly critical in both the short and long term, and management must address it urgently.

There are 4 domains into which a merger falls:

  • Align domain mergers are horizontal mergers, where one company merges or acquires other companies, usually competitors, in the same industry.
  • Associate domain mergers are vertical mergers, where one company merges or acquires other companies in the same industry, but at a different point in the supply chain.
  • Alien domain mergers are diagonal mergers, where a company merges or acquires other companies in other domains and industries.
  • Affiliated domain mergers are also called related mergers, where a company merges or acquires other companies in a related domain.

PANKHURI :

  • P : Policy and Procedures Mapping
  • A : Aligning Organizational Structure
  • N : Neutralizing Cross-Cultures
  • K : Knowledge Management
  • H : Handling Anxiety
  • U : Upgrading Skill Sets
  • R : Relocation Plan
  • I : Ideal Compensation Management