Unlocking value through human-centric transactions

IN BRIEF: Successful transactions require lead- ers to prioritize transformative goals over mere deal completion, emphasizing a com- pelling vision that engages employees and drives long-term success. Addressing the human element of a transaction is crucial; fostering an environ- ment where employees feel valued and supported significantly enhances the likeli- hood of successful outcomes. Organizations must be prepared to manage pivotal moments throughout the transaction process, leveraging decisive action and transparent communication to build trust and maintain momentum.

- NOEL P. RABAJA

Transactions can serve as powerful catalysts for transformation when leaders create the right conditions for high performance. The EY-Parthenon CEO Outlook Survey indicates that 96% of global CEOs plan to engage in some form of transaction in the coming year. These transactions are essential components of corporate strategy, enabling businesses to enhance shareholder value and differentiate themselves in competitive markets. While they present unique challenges, transactions also provide opportunities to accelerate transformation and reshape a company’s future.

Research from EY identifies three key factors that contribute to successful transactions. First, bold leadership is crucial; 59% of transaction leaders believe that an organization’s capacity for transformation is vital for its long-term viability. The more ambitious the vision behind a transaction, the greater the potential for value creation. Second, addressing the human element of a deal is equally important as financial considerations. Leaders must foster an environment where employees feel valued and engaged. Finally, leaders should be prepared to navigate critical moments throughout the transaction process, as effective management can turn challenges into opportunities.

By focusing on these elements, leaders can significantly enhance the value derived from transactions. This article draws on findings from a collaboration between EY and the University of Oxford’s Saïd Business School, which examined transformation programs and gathered insights from senior leaders and workforce members involved in transaction-driven transformations.