Latest news with #corporateculture
Zawya
4 days ago
- Business
- Zawya
Smooth business handovers: A survival guide for South Africa's entrepreneurs
In today's dynamic business environment, leadership transitions are inevitable. Whether due to a c-suite reshuffle, a merger, or an acquisition by a larger group, periods of transition can be destabilising for businesses of any size. In fact, research based on over 40,000 corporate acquisitions spanning over four decades has shown that 70% of mergers and acquisitions fail to fulfil their expectations. Amogelang Montane, human resources business partner at Business Partners Limited Amogelang Montane, human resources business partner at Business Partners Limited, believes that effective leadership is at the heart of any successful business transition. 'Any big change, when not managed properly, can result in operational inefficiencies, employee uncertainty, and even a knock to revenue. However, many of these results are often avoidable, and with a well-planned handover strategy, it's possible for your business to make it through these times of uncertainty.' While any change in leadership can be challenging to manage, Montane notes that mergers and acquisitions require particularly careful consideration – especially when a smaller business is being acquired by a larger company or corporation. 'When a business merges with another or is acquired by a larger group, the shift in company culture, operational processes, and management structures can cause significant disruption to the 'norm' employees have become used to. Small and medium enterprises (SMEs), in particular, may struggle to integrate into a larger corporate framework without a clear roadmap.' Montane lists four key considerations for entrepreneurs to ensure business continuity during these types of transitionary periods. - Clear communication Transparent communication with employees, customers, and other key stakeholders is vital. 'Ensuring that all parties are kept up to date about changes and their implications will help manage expectations and reduce uncertainty across the organisation,' says Montane. - Strategic planning A comprehensive transition strategy should be in place before any major leadership or structural change. This includes clear succession planning, especially for family-owned businesses and founder-led SMEs, notes Montane. 'These smaller, tight-knit businesses often face challenges when ownership or leadership is transferred. Without a structured succession plan, conflicts may arise, threatening the business's continuity,' he explains. - Talent retention It's estimated that 47% of key employees leave within the first year following a merger or acquisition, and 75% leave within the first three years. 'This is why keeping employees motivated and aligned with the company's vision during a transition is one of the greatest human resources responsibilities in a merger. The loss of talent after an acquisition can be so significant that it erodes value from the transaction,' says Montane. He adds that conducting due diligence around culture and operational processes is also critical when merging two organisations. 'While HR is responsible for supporting employees on a day-to-day basis, it is up to the leadership team to provide reassurance, guidance, and opportunities for professional growth to retain key talent.' - Financial stability Ensuring access to capital during periods of transition can help businesses to persevere through potential financial instability. 'As a financier to SMEs, we have seen first-hand how well-planned transitions supported by the right funding can ensure business continuity,' adds Montane. While leadership transitions can be daunting, they also present an opportunity for businesses to evolve and strengthen their competitive position. By implementing a structured approach, SMEs can mitigate risks and emerge stronger on the other side of change. 'As South Africa's SME sector continues to grow and evolve, businesses must embrace change as a constant. With the right leadership and strategic planning in place, transitions can be transformed into catalysts for success,' concludes Montane.
Forbes
12-05-2025
- Business
- Forbes
Learning From Apple And Google How CEOs Can Best Follow Founders
The Google Triumvirate: Eric Schmidt, Larry Page, Sergey Brin 40% of new leaders fail in their first 18 months because of poor fit, poor delivery, or a poor ability to adjust to changes down the road. The fit risk is especially strong for CEOs taking over from founders. Those that disregard the founder's legacy, alienate key stakeholders, neglect relationship-building, or move too hastily are doomed to failure. Instead, the path to success goes through the seven stages of executive onboarding with a particular emphasis on focus and trust. Focus on the mission and culture to set up evolving strategically. Make integrity and respect priorities to build enduring trust. New CEOs took over from founders twice at each of Apple and Google: First John Scully from Steve Jobs, and then Tim Cook from Jobs at Apple, and Eric Schmidt from Larry Page and Sergey Brin and then Sundar Pichai the second time around at Google. Cook and Pichai respected their founders' values and influence, while strategically evolving their organizations. They maintained the core of their innovation-driven cultures, with Cook fostering inclusivity and Pichai emphasizing empathetic leadership. They recognized their founders as culture creators and embraced their roles as cultural stewards. In contrast, Scully's corporate approach from Pepsi clashed with Jobs' product-centric culture. Schmidt and Cook built trust through transparency and collaboration. Schmidt formed a triumvirate with Page and Brin to make key decisions together. Cook invested all sorts of time in keeping Jobs in the loop and leveraging his passion. Additionally, Schmidt and Cook clarified their roles versus the founders' role in a way that respected each other's differential strengths. They were each able to balance innovation with operational discipline. Schmidt professionalized Google's operations on the way to its IPO while continuing to support bold bets. Cook optimized Apple's supply chain while keeping the core product-focus in place. On the other hand, Scully eventually forced Jobs out and failed to maintain trust with the board and employees, contributing to his ouster. The fundamental prescription for executive onboarding plays out through seven stages for any new leader: marketing, selling, buying, preparing, converging, evolving, and adjusting in that order. CEOs following founders should pay even more attention to focus and trust while converging and evolving. 1. Focus. Make sure you and the founders are aligned on the organization's mission and current culture, and, especially, the organization's core focus (design, production, delivery/distribution, or service.) That gives you the platform to evolve the strategy, organization, and culture over time. The organization's over-arching mission – why you do what you do – should probably not change. Similarly, your core focus and bedrock values should also not change as those are part of what the organization stands for and who it is. On the other hand, you must evolve your strategy in response to changing conditions in the world. And your organization must evolve in line with your strategy. 2. Trust. Over-invest in building relationships and trust with the founders and other key stakeholders. Have a bias to more transparency and collaboration. Be trustworthy on two dimensions: 1) having others' best interests at heart and 2) demonstrating the capability to do and get done what you say you're going to do and get done. Clarity on roles, responsibilities and accountabilities is part of this. Split responsibilities in a way that leverages each leader's unique strengths. You've been brought in to do things the founders either cannot do or choose not to do. Get clear quickly on what you and the founders should do on your own, together, or not at all. The way you delegate builds trust. The way the founders and board delegates to you builds trust. The best delegation includes inspiring direction, enabling resources, empowering authority, and credible accountability. Converging into the organization and aligning with the founders is about fit. Doing that well is the essential foundation to being able to get done what you need to get done. And building relationships throughout the organization leads to others being able to tell you about the changes in the world they're seeing so you can adjust. Click here for a categorized list of my Forbes articles (of which this is #944)
Forbes
09-05-2025
- Business
- Forbes
The Purpose-Driven Bottom Line
Dr. Moby Kazmi is the President and Co-founder of COPILOT Provider Support Services. getty Pouring over spreadsheets every day can take some of the humanity out of corporate work. That's why savvy business leaders want to create work environments where purpose is paramount. In my experience, the best work gets done when a team believes their work creates a positive impact on the individuals they serve while contributing meaningfully to the larger world. That is why it is crucial to weave values and purpose into the core of any business. When accomplished properly, values fuel culture, trust and growth in ways even the most well-crafted financial strategy can't. Some companies see profit as its own end, but increasingly, members of a motivated workforce seek purpose as part of their output. According to a 2024 Deloitte survey, 89% of millennials and 86% of Gen Z say purpose is important to overall job satisfaction. While individuals may find purpose-driven commitments outside of work, I believe corporations should take the lead in defining and encouraging a focused set of values that resonate across the organization. Purpose Attracts And Retains Talent Hiring the right people is one of the most powerful ways to shape and strengthen a company's culture. When we look for new team members, one of our most heavily weighted criteria is that their values align with our company's culture of service and impact. Top candidates often choose to work with us not because we offer the highest salary or the flashiest perks, but because they believe in our mission. Team members who share the company's values also tend to stay longer. I've found that shared values around giving back and contributing to something meaningful foster stronger retention. When people see their work as tied to something bigger than themselves, they commit for the long haul. Purpose Alignment Creates Efficiency When a team isn't aligned around a shared purpose, individual goals can become muddied or even contradictory. But when everyone sees their contributions as vital parts of a larger whole, efficiency prevails. I aim to nurture a culture where everyone is aligned around a unified mission. Shared values create a common reference point that helps teams navigate disagreements or tough decisions. This clarity keeps everyone rowing in the same direction. Purpose also strengthens peer relationships. A shared sense of meaning pulls team members out of their silos and into genuine collaboration. Consider developing internal communications that regularly reinforce how your organization's work makes a difference in the world and how it can help team members reconnect with a deeper sense of purpose. Values Enhance Trust For Stakeholders And Customers A purpose-driven narrative tells your company's story better than any balance sheet. Partners, clients and even regulators are naturally drawn to organizations that lead with conviction and clarity. A values-forward message allows stakeholders to imagine what it's like to work with you and gives your marketing and sales teams a deeper story to tell. Social Impact Propels Sustainable Growth Business growth is influenced by many factors, and partnerships are among the most important. When partnerships are grounded in social impact, they generate goodwill that often translates into organic growth and new opportunities. Whether it's local community projects or international humanitarian work, shared values can unite businesses in meaningful collaborations. These relationships can open doors to new products, markets and moments of shared purpose. True North, Mission, Vision And Values My mentor used to say, 'Everything can change — except True North.' That's the non-negotiable goal. Once a company aligns on it, that direction drives every decision. Too often, companies define True North purely as a financial target. But when you build your pyramid with people at the top — for example, making 'Build the best team; Keep the best culture' the first and most important part of your True North — everything else falls into place. Client satisfaction, client retention and yes, revenue and EBITDA, all matter. But sustainable growth starts with people. When you invest in your team and culture first, performance follows, not the other way around. When companies define a clear True North along with a purpose-driven mission and aspirational vision, it allows every team member to understand what they're aiming toward and why. Values then anchor how they show up along the way. It's not just a framework — it's a cultural compass. And when done right, it turns strategy into belief and belief into momentum. Good Work Is Its Own Reward Of course, the most important reason to lead with purpose is because it's the right thing to do. Purposeful work uplifts the people we serve and inspires the people we work with. One of our most deeply held values is: Change Lives, Create Futures. We don't settle for surface-level impact. Through both our day-to-day work and our broader social impact efforts, we strive to equip people with real skills, open meaningful opportunities and create lasting change — one life at a time. In part two of this article, I'll walk through the specific philanthropic journey that brought this value to life in our organization and how it shaped both our culture and our growth. Forbes Business Council is the foremost growth and networking organization for business owners and leaders. Do I qualify?
