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Tips and Answers
to Your Questions
The Negotiations Process
How important is it to have those responsible for
human resources represented at the table during the discussions regarding
the formation of an alliance?
It is of great importance to consider and address Human Resources
(HR) issues during all phases of the strategic restructuring process
- including both the assessment and negotiations phases. The exact
role that the lead HR representative(s) from each organization should
play in the negations process varies with the type of restructuring,
however. Your question addresses alliances, which according to The
Partnership Matrix are administrative consolidations and joint
programming efforts. For these types of restructurings, the negotiations
committee is typically made up of senior staff members, and thus it
would be both very appropriate and very helpful to have those in charge
of HR "at the table." By giving adequate attention to the
myriad of issues and concerns related to HR that arise during organizational
change and the formation of partnerships, organizations can avoid many
problems and can optimize the outcomes of the negotiation. Ultimately,
this assures a smoother implementation process and helps to insure
the success of the alliance.
Regardless of how positive the alliance looks on paper, it is people
who make it a reality. Change is one of the most feared and stressful
of human conditions, and alliances can involve great change. Employee
anxiety tends to be high during the negotiation and implementation
processes, and if not addressed can impede both, and compromise the
success of the alliance.
During negotiation, the organizations' leaders tend to be focused
on the rationale for the alliance-how together the organizations can
better achieve their individual and shared missions - and on the technical
aspects of structuring the alliance. While the leaders are focused
on these discussions, staffs tend to be focused on more personal issues
and needs: "How is this going to affect me?" "How will
it affect my job?" Issues, even minor ones, that are not addressed,
or that are poorly addressed and left to the mercy of the rumor mill
during the negotiation phase, will leave residue and/or angst to be
dealt with during the subsequent phases. Having HR representatives
at the table assures that these issues are surfaced, addressed and
resolved before they become major impediments or even deal-breakers.
While others are focused on how to make the alliance a reality, the
HR representatives perform essential functions around addressing the
very real concerns of employees, both in and outside of the negotiation
meetings themselves.
One way to calm employee anxiety is to demonstrate an awareness of,
and concern for, the issues that arise for employees during periods
of uncertainty and change. HR forms a feedback loop to the negotiation
committee-letting the committee know of employee concerns, and assuring
that the issues are addressed and that employees are informed. When
employees feel that their concerns are taken seriously, they are much
more likely to support the process. Even if the answers aren't yet
available or even if the answers aren't what they would like to hear,
employees are more likely to trust the process and to support the eventual
outcome if they know that their issues are being given consideration.
HR also offers specific expertise that can be quite helpful in the
negotiations process. Some significant HR-related issues that are likely
to arise during negotiation are
- the impact of the alliance on staffing structures and head count;
- standards and systems for accountability within the alliance;
- co-managerial and supervisory responsibilities;
- potential issues with compensation equity; and
- risk management.
After the alliance is formed HR issues become even more prevalent,
as many of the questions raised by employees moving forward are HR-related: "Will
my role and responsibilities change now that we are part of this alliance?" "What
happens if I have problems with someone from our partner organization
- how will that get resolved?" "What happens if I have responsibility
for supervising an employee from another organization, but no authority? "What
will the culture of the new program or administrative department be?" Post-decision,
these issues can consume significant amounts of time. By having HR
representatives present at the negotiation table, these issues can
begin to be considered and plans for how they will be addressed can
be developed early in the process, making the implementation process
much smoother.
In our experience, one of the keys to successful negotiation and implementation
of a strategic restructuring effort is frequent, honest, and appropriate
communication with all stakeholders-communication that begins well
before the announcement. Adequate communication helps to minimize employee
concerns. The HR department (or individual), working closely with staff
responsible for internal communications, serves an important role in
assuring that this communication occurs. (We note that often the person
responsible for HR is also responsible for internal communications.)
At a minimum, HR can make sure that employees are as well informed
as possible during the process.
In sum, the success of the negotiation process, and of the alliance
itself, is significantly enhanced by having HR present in the process
from the beginning.
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