following merger, greater access to availabletalent pool, or a strategic location for globalbusiness. Whatever the reason, group movedecisions often occur in great secrecy atthe most senior level. The organizationmay include external advisors for legaland ﬁnancial considerations, and humanresources may or may not be involved inthe decision process. The debate to moveor not to move often centers on a few keystrategic questions:What does the successful organizationlook like in 2010 and beyond?What changes need to be made to getthere?Do the long-term gains trump anyshort-term business disruptionsand risks associated with a merger,acquisition, HQ relocation, or a groupmove of one or more business units?
The Group Move Balancing Act
In board rooms around the globe, senior executives are considering the next steps inthis high stakes, highly competitive environment. Organizations face tough decisionsin a quest to survive, succeed, and maximize potential and proﬁtability.
ergers and acquisitions are a key stepto success for many companies in thecurrent economy. In a survey of nearly 500executives, 25 percent of businesses werelikely or highly likely to make an acquisitionin the next six months, 33 percent in thenext 12 months, and 41 percent in thenext 24 months. (Ernst & Young, New York Times). This activity, along with restructuringand new markets, can result in businessesmoving a select group of people or an entireorganization to a new location. The groupmove activity that follows these actions isanything but typical.In 2010, it’s not business as usual whenemployers decide to relocate employeesand their families. An unsuccessful groupmove can cost a company millions andcause the loss of the best and brightestemployees. With top talent in short supplyand employees more reluctant to relocatethan ever before, organizations need solidstrategies to guide business decisions thatinvolve talent and mobility.
Group Move Decisions for the Employer
Reasons for a group move vary and mayinclude reduced labor costs, proximity tocustomer base, desire for a neutral location
Copyright Vandover and Runzheimer, 2010. All rights reserved.
“There are many sides to an M&Atransaction,” says James Kristie, editorand associate publisher of Directorsand Boards. “Financial, legal, strategic,and tactical. And… there is a humanelement to every deal.”
(Boardroom Brieﬁng: Mergers & Acquisitions 2009)