Drue DeAngelis
READ PART 1 HERE
It’s been several months since my first article on what to expect from the Zimmer Biomet merger. Not much has happened apart from the typical script being played repeatedly that “it’s business as usual” under the new Zimmer-Biomet banner. The transition team was announced and it appears that the early big winner is Biomet with Adam Johnson, Dan Williamson & Dave Nolan being selected as the new Group Presidents leading the transition. But what does this mean and what will happen next? No one knows for sure, but if I don’t miss my guess, there will be some big announcements coming out soon. Those announcements will signal the next phase of the transition and the first wave of several “Reductions in Force.” (RIF’s) Unfortunately, no one is protected from a RIF. All of the typical protected classes of employees are fair game during this type of transaction, so don’t assume that you are immune.
Zimmer will want to try to keep these episodes on as small a scale as possible to avoid a disruption in the field and mass exodus. They will count on the self preservation instincts of those who get ousted to “keep quiet and go along” in order to receive their severance packages. The first wave will be the Division Presidents followed shortly thereafter by the VP’s. They will allow the dust to settle a bit before the next level hits the AVP’s and subsequently Sales Directors. Each layer of retained leaders will be called upon to select the next level’s winners and losers. The most obvious redundancies exists in the field but before the RIF reaches the Distributor/Branch level, there will be the thinning of sales leadership. They will endeavor to keep most of the “high potential leaders” even if it means reassigning them to another role or division. For some, this will mean they have to endure a demotion, but their only other option is an exit plan. Due to the obvious redundancies across the board, the leaders who make these decisions will do their best to mitigate the risks of losing business. Yet as fiercely political as this may become, this will prove increasingly challenging Ideally, by combining two companies, they hope to enjoy the “One Plus One Equals Two” outcome when the dust settles. However, this takes incredible finesse to accomplish and most companies fall short of achieving it. Subsequently, their “One Plus One” will most likely equal “Less than Two,” and this begs the question “how much less?” Let’s face it, if you’re not kept around, you really don’t care too much about how things play out, but the business that is lost will go to those companies who stand to capitalize on this feeding frenzy.
Don’t expect this process to follow a logical progression in terms of winners and losers. In fact, if you end up on the wrong side, you shouldn’t view this as a failure. Only time will tell, but you may be significantly better off outside of the new Mega Zimmer-Biomet rather than within…READ THE REST AT TDG-LLC
