CLDA : Given all the consolidation in the industry , are people losing their jobs ? When companies come together , there will inevitably be duplicate resources . Are people saying , “ We don ’ t need two CFOs ”? How is that playing out ?
Hadhazy : We ’ re seeing some of that . But with the speed of consolidation , it ’ s been slower than what we would have expected . Normally , management would say , “ We ’ ve got six months to do the handover , and then we ’ re going to get rid of our duplicate CFOs .” But because investors are purchasing multiple companies in quick succession , there is a longer lead time to complete integration and consolidate senior leadership . Because of that more extended transition period , it ’ s also opening up the opportunity for new roles to be defined within the organization .
CLDA Mag : Talk about that .
Hadhazy : When a company identifies effective and high-quality leaders , they will try to keep those employees by offering them new roles or creating new positions . We ’ ve seen senior leaders who have shifted into roles they never thought they ’ d be in . For example , I ’ ve seen some financial folks go to the operations side as senior operations leaders , and presidents of operations go into top regional roles . Those regional roles have become more important as networks get more complex through acquisitions . That ’ s because many of the acquisitions across supply chain and logistics are of regional companies . Instead of absorbing these companies into one national system , some companies are finding it more effective to create regional tiers . Heading up these regional tiers isn ’ t the same as being a chief operating officer or a CFO , but it ’ s a critical position experienced leaders are well-equipped to take on .
CLDA Mag : Are some people unable or unwilling to make the changes needed to adapt to these new companies ?
Hadhazy : Yes , some are just leaving the workforce . That ’ s the reality . The change management side of these transitions can be difficult for a lot of people . It ’ s particularly tough for those coming from small operations , especially in the last-mile space . These companies scaled up quickly . There was a need . They met that need locally and grew fast , attracting M & A interest . Post-acquisition , integrations were handled with varied success , and many employees chose to leave .
CLDA Mag : How does a smaller company retain talent post-merger ?
Hadhazy : To see the ROI investors want , there must be an investment in change management . How do you upskill people so they can fit into the new organization ? How do you roll out your new technologies ? How do you identify and use change agents ? If you get the right change agents from the company that ’ s been acquired , they can help lead the transition and make the entire process smoother for all employees .
CLDA Mag : If you ’ ve built a small business from the ground up , isn ’ t getting the people-part right after an acquisition particularly challenging ?
Hadhazy : Yes . In many small companies , there ’ s a mentality that “ we ’ re all family ,” which doesn ’ t scale well . And when your cousin is no longer in charge , you can ’ t operate as you did before . There isn ’ t the casual connection that ’ s part of that dynamic . There ’ s a new structure in place . In a smaller company , when things get busy , they ’ ll pick up the phone and call in their former employees , brother , and neighbor and say , “ I need you to do this today . I know you ’ re not scheduled to , but please come help .” That doesn ’ t fly in a bigger entity . The process and procedures that help larger companies work efficiently are long-term strategies requiring scale and time .
CLDA Mag : What happens if you can ’ t get the peopleside of a merger right ?
Hadhazy : Investors don ’ t end up seeing the KPIs they expected . Often , it ’ s because they made a change of leadership too quickly . They purchase a family company that was thriving on those family relationships , and when that CEO or leadership team leaves those relationships with their customers aren ’ t there
Consolidation is happening throughout the industry and supply chain , so leaders who can build relationships and networks are the most sought after .
24 customized logistics & delivery Magazine I summer 2023