Joint Ventures
In a joint venture (JV), two or more companies combine their people, assets, capabilities, and knowledge to fill an existing or emerging market need. And, while the business rationale for joint ventures is often compelling, the human capital challenges of these transactions can be difficult and complex. In many ways, JV transactions involve some of the most complex human capital issues associated with any type of transaction.
Some of the most common human capital issues to address include:
- How do employees identify with the new JV entity (particularly when they came from one or both of the parent companies)?
- What type of culture will the JV have? Should the organization have an identity and culture that is unique from each of the parents or a blend of the two?
- How do you align employees with the goals of the JV when incentives were previously provided by one or both of the parent companies?
- How do you transition employees from parent company HR programs to the programs of the new entity?
- How does the HR department operate in relation to the parent company HR operations?
- How do you convert and align long-term incentive programs from the existing programs at each of the parent companies?
Exequity advisors have vast experience at addressing these types of questions and more. We have worked on some of the largest, most complex joint venture transactions with some of the world's most successful companies.
Our JV services include:
- Developing the HR strategy for the new JV.
- Designing new executive compensation and long-term incentive programs for the new entity.
- Addressing technical issues (tax, legal, regulatory) related to JV compensation arrangements.
- Working with parent companies and management on establishing compensation governance practices for the JV.
- Designing pay and rewards programs that align with the unique business needs of the JV.
- Designing the formal and informal operating norms of the new organization.
- Identifying and resolving cultural issues associated with the JV.
- Managing the change and transition events of moving to a JV organizational form.
- Developing the JV change management campaign.
