Do acquisitions disproportionately shed older staff?

A youngster about to join a large enterprise after completing a degree at University asked an interesting question last weekend. ‘Does an enterprise that acquires another company use the purchase as a smokescreen to shed older, long-serving, higher-paid employees?’  That’s an interesting and unusual question from someone at the very start of their career. So why did they ask it? Well, firstly their new employer has acquired another substantial company and restructuring activities are underway. Secondly, they knew the Badger had some experience in navigating a number of mergers and acquisitions. Lastly, the tech-savvy youngster had come across online chatter that his new employer’s older staff with long service were being disproportionately targeted during restructuring. The youngster, with no experience within large enterprises, anticipates a long career with their new company, but they were a little perturbed that their new employer might possibly be engaging in age discrimination, something that’s prohibited under the UK Equality Act 2010.

Answering required words that were balanced, honest, and rooted in personal experience of post-acquisition integrations. So, what did the Badger say? Firstly, that acquisitions often lead to reorganisations which can legally justify redundancies based on performance or role duplication at any age or level of seniority. Loyalty and long-service counts for nothing in such a scenario, and older employees may be more vulnerable because they typically have higher salaries and benefits, which means shedding them can significantly reduce payroll costs. Secondly, an acquisition can be a vehicle to change an enterprise’s culture, especially in fast moving industries subject to rapid innovation pressures. This always favours the retention of younger, tech-savvy staff and those with in-demand skills. Thirdly, not every acquisition is a smokescreen for eliminating older, higher-paid employees, but, in reality, some acquirers do quietly use their purchase to shed older, higher-paid employees because they know that it’s normally difficult in these circumstances for individuals to prove age discrimination for their redundancy. Do acquisitions disproportionately shed older staff? Some do, some don’t.

The youngster nodded, reaffirmed their intent on a long career with their new employer, and asked if the Badger had any advice for the long term. Yes. Maintain skills that are current and valuable outside your company, as mergers and acquisitions rarely reward loyalty or long service. As you get older and more experienced, watch out during acquisition integration activities for a) silence about future roles for you or your peers, b) performance reviews, and c) role redefinitions. These often signal something is afoot that affects you personally. Also, never forget that HR works in your employer’s interest, not in yours.

The youngster grinned and said they obviously had lots to learn! The Badger smiled too, pleased that he’d sown a few seeds of awareness in a youngster who will soon learn that things are never quite what they seem inside organisations when it comes to workforce matters.

Nuclear reactors on the moon – a geopolitical investment in future dominance of Space…

The building of software and systems for Space missions, and to control satellites and process associated data, was an interesting and  fascinating area throughout the Badger’s IT career. Today it’s easy to forget that the imagery we take for granted with the weather forecast is produced by systems and software created by developers with excellent science,  engineering, and computing credentials, most of whom have little interest in working outside the Space sector. The Badger observed, over the years, that developers in this area often preferred to leave for another Space sector company rather than be assigned to a project outside the sector if there was a lull in available projects.

The Badger thus had two initial thoughts when the US announced an acceleration of its plans to put a nuclear reactor on the moon. The first was ‘Great. More opportunities for developers in the Space sector if AI hasn’t taken their jobs’. The second was more philosophical and about the tension between visionary ambitions and pragmatic, grounded responsibility. The US plan, and the equivalents of Russia and China, is driven by a mix of strategic, technological, and geopolitical motives. However, is it sensible and in humanity’s interest for the Earth’s most powerful nations to spend huge amounts of money on Space endeavours when there’s a pressing need for it to be spent resolving problems on our planet? Should there be investment in long-term Space infrastructure that might, a long time from now, redefine humanity’s future? The answers depend, of course, on your perspective on life and our world.

Some see Space endeavours as a driver of innovation and ultimate human survival, whereas others see them as distractions from addressing real problems here on Earth. To the Badger, all plans for a nuclear reactor on the moon simply illustrate the shift away from an ethos of inquisitive exploration to one of establishing national strategic dominance making Space a domain of economic leverage, diplomacy, and warfare. Regardless of who does it, putting a reactor on the moon is an outright geopolitical investment in establishing future dominance. The prospect of the geopolitical tensions we see on Earth playing out on the Moon and beyond seems, at least to the Badger, grotesque.

Investments in Space endeavours push technological boundaries, reshape thinking, and stimulate innovation, but the fact is that humans are biologically unsuited to the environment beyond our planet is undeniable. So, in an age of automation, robotics, and AI, why spend huge sums sending and supporting humans on the Moon and beyond when robots can do the same job and the savings can be used to address humanity’s issues here on Earth? Is that idealism? Perhaps, but all it would take is leadership on behalf of all of humanity rather than individual nations. And there’s the rub, the likelihood of that ever happening, of course, is…er…zero.

Late payments to subcontractors and suppliers…

Enterprises often hold an annual leadership conference to review the highs, lows, and lessons from the year, and to align their leaders with the business objectives for the year ahead. The Badger first attended such a conference decades ago when all attendees were gathered in the same place for an intense couple of days of formality and informal networking with peers. Enterprises today are increasingly sensitive about the logistical costs and environmental issues associated with gathering people in one place. Many such leadership conferences have thus become more hybrid in nature with smaller, distributed gatherings connected using online video streaming services. This very modern, tech-based approach has many benefits in terms of cost and convenience.

Although the Badger’s first annual leadership conference was a long time ago, he still remembers vividly a particular point made by the company CEO during a presentation lamenting the difficulties of being an IT subcontractor delivering  projects into client’s major programmes. The point was ‘Being a subcontractor is great, but being the prime contractor controlling when a subcontractor gets paid is much, much, much better!’  For some of its projects, the company had been struggling to get prime contractors to pay valid invoices for achieved milestones within contracted terms. The prime contractors had played all kinds of games to pay their subcontractors and suppliers when it suited them, rather than to what was written in their agreed contracted terms. They knew that apart from chasing and whining, subcontractors and suppliers were unlikely to take more forthright action because they wanted to avoid lasting damage to the client relationship in case it excluded them from potential future work opportunities.

Since then, UK legislation in 1998  has made provision for interest on late payment under commercial contracts. However, recent information suggests that only 1 in 10 subcontractors/suppliers enforce this right by actively charging interest, claiming compensation, or seeking debt recovery. This suggests that some level of reluctance remains due to concern about damaging customer relations,  especially for smaller businesses who are, after all, the majority of the UK economy and often heavily dependent on a small number of clients. It may be decades later, but the CEO’s point noted above remains relevant.

Cash flow difficulties can cause liquidity crises and even collapse for any size of enterprise, and so when the Badger heard that the UK government is introducing tougher late payment legislation his first thought was not alleluia, but why hasn’t AI and automation revolutionised payment processing in enterprises to ensure that payments  against valid invoices are always fully paid within contracted terms?  After all, digital technology has been transforming everything for years, and so perhaps this new legislation will add momentum to making a payment revolution happen faster. Let’s hope so. By the way, if you’re interested, you can check how well an enterprise does in paying within terms using the government tool here

Work-life balance…

Work can be all-consuming. Organisations emphasise values like ‘employee well-being’ and a ‘people-first culture’, but most really operate with deliverables and timelines as their overwhelming priority. HR departments may advocate for ‘work-life balance’, but business leaders, project, programme, and service delivery leaders always push staff for huge effort and heroics to meet a deadline or milestone. In the IT sector, for example, do organisations ever willingly miss a deadline or milestone because of ‘employee well-being’ or their ‘people-first culture’? No.

The Badger’s just had some downtime in Morthoe on the UK’s North Devon coast. The apartment in which he stayed had wonderful coastal views, and it was while nibbling a scone on its balcony in the afternoon sun that thoughts turned to work-life balance. Life on the North Devon coast still provides access to all of today’s online services, but the sounds, the sea, the geology, the flora and fauna, and the local lifestyle forces relaxation and puts work-life balance into perspective. What did the Badger conclude about work-life balance? Simply that it matters. It isn’t just a trendy phrase. It’s a necessity for sustaining energy, protecting mental and physical health, and keeping one’s mind sharp. It matters because burnout reduces productivity and clouds judgement. Downtime helps the brain reset improving creativity, motivation, and decision making. It also matters because quality time away from work helps to build a broader perspective on life as a whole.

The Badger concluded years ago that there are three certainties regarding people. The first two are a) people and not machines, and b) they are all different. Some thrive on having really intense work periods followed by breaks of really deep rest, while others thrive with a daily structure of predictable routines, boundaries, and pressures interspersed with regular shallower rest periods. We are all different, and so the key to a good work-life balance is simply to adopt a personal rhythm that fuels and refreshes rather than drains your capability. Finding the rhythm that works for you within the terms of your employment contract is important. There’s a paradox, however. Employment contracts normally include a holiday entitlement to rest and recharge, and yet many people don’t take all their entitlement. The reasons for this are numerous, but sometimes it’s because a) the work culture rewards hustle more than rest, and b) that an individual misguidedly thinks that everything will collapse if they take a break. So, what’s the Badger’s third certainty about people? Simple. No one is irreplaceable.

If you accept these people certainties and find your rhythm for work-life balance then you will be healthier, sharper, more productive, and more resilient, and the organisation you work for will perform better too. So, use your holiday entitlement. As the Badger was reminded while nibbling scones in the North Devon sunshine, a break is good for you…

Youngsters outsourcing their mental effort to technology…

Live Aid happened on Saturday 13th July 1985. If you were a young adult then, do you remember what you were doing when the concert happened? Were you there? Did you watch it live on television? The Badger had his hands full that day doing some home renovations while having a one-year-old baby in the house. He thus only saw snippets of the televised live concert. Last weekend, however, he made up for it by watching the highlights broadcast to celebrate the concert’s 40th anniversary.

Watching the highlights brought home why the music at the concert has stood the passage of time. It was delivered by talented people with great skill and showmanship without today’s cosseting production techniques and tech wizardry. What struck a chord most, however, was the enthusiasm of the Wembley Stadium crowd, the vast majority of whom are now grandparents in, or facing, retirement! People in that crowd had none of the internet access, smartphones, or online services we take for granted today. In 1985 the UK’s first cellular telephone services were only just being introduced by Cellnet and Vodafone, and ‘home computing’ meant the likes of the Sinclair ZX Spectrum and the BBC Micro. A far cry from today! Furthermore, those in that crowd represent a generation that thought for themselves and didn’t have their minds dulled by reliance on digital technology and internet-based online services. Their grandchildren, on the other hand, only know life based around the internet, and they often seem oblivious to the likelihood that their reliance on online things like social media might be dulling their minds, nudging them towards a passivity of thought, and perhaps ultimately causing atrophy of their brain.  

Concern about technology dulling human minds isn’t new. In 370 BC, for example, Socrates worried that writing would erode a person’s memory!  With AI endlessly expanding, however, the potential for today’s youngsters to completely outsource mental effort to technology seems very real. More and more  scientific evidence shows  that while the human brain is highly adaptable, digital immersion changes attentiveness, the way we process information, and decision-making. Some brain functions weaken due to digital immersion, others evolve, but the Badger thinks that when our digital world provides instant answers, the joy and effort of discovery through independent thought is dwindling. Always available digital content at our fingertips means fragmented attention spans and contemplation and reflection taking a back seat,  especially for youngsters with no life-experience without today’s online world.

Watching the 40th anniversary highlights thus did more than provide a reminder of the great music of that day. It brought home the fact that today’s  grandparents have something precious – a lived experience of independent thought and contemplation without an overreliance on our digital world. It feels, however, that their grandchildren are progressively outsourcing their mental effort to ever more advanced digital technology which, this grandfather senses, doesn’t augur well for the human race…

Fuzzy information? Still make decisions…

Twenty years ago on the 7th July 2005, four suicide bombers targeted London’s public transport system during the morning rush hour. At 8:50am three bombs detonated within 50 seconds of each other on Underground trains at Aldgate, Edgeware Road, and Russell Square, and a fourth detonated an hour later on a double-decker bus in Tavistock Square. Almost 800 innocent people were injured and 52 lost their lives. The Badger remembers that day clearly. At the time of the bombing, he was attending a UK leadership meeting in his firms Great Marlborough Street office completely oblivious to unfolding events.

The UK CEO had started the meeting at 9:30am even though the UK Sales Director was absent and hadn’t called to say they’d be late. They eventually arrived at 10:20am,  perspiring heavily having walked from Waterloo because no Underground trains were running. They said ‘Something serious is happening. There’s sirens everywhere, the Underground isn’t running, and mobile phone networks aren’t working’. The room’s TV was tuned to a news channel, and everyone present scanned the internet, tried their Blackberry devices, and looked at their corporate emails for information. No one could connect to a mobile phone network. When news of the Tavistock Square bus explosion appeared on the TV  there was instant recognition that the meeting could not continue, not least because Tavistock Square was just a 4-minute walk from the company’s main London office housing some hundreds of staff.

The Badger, the company lead on business continuity crises, activated the company response to the unfolding event. The meeting room became a rudimentary crisis management centre. It’s tools were just a conference phone, laptops providing access to corporate email, the news channel on the TV, and Blackberry devices with, at best, intermittent mobile network connectivity. The Badger and a subset of his colleagues spent the next 10 hours in the room dealing with a maelstrom that involved monitoring the terror incident, mobilising business continuity contacts and processes, establishing the well-being of staff and visitors to the company’s London offices, ensuring the continuity of projects and services, making and communicating clear decisions relevant to clients, verifying the continuity of business operations, and dealing with the needs and well-being of staff.  

It was an intense day full of fuzzy, confusing, and often conflicting information. For the Badger and his colleagues, the experience reinforced the importance of having cool, unemotional heads to make decisions during crises, especially when information is highly fluid. It also reinforced that fuzzy, confusing, or conflicting information should not be used as an excuse for prevaricating on decision-making when there’s overwhelming pressure. Make a decision, move on, and change it if better information emerges was an important dynamic. We eventually went home exhausted having made many more good decisions than bad. It hadn’t been the routine day in the office the Badger had expected. It had been truly unforgettable….

Gold, e-waste, and a dependence on physical innovation…

There’s a large Acer tree in the Badger’s garden with masses of delicate leaves which rustle sweetly when there’s a hint of breeze. In the Summer it’s a great place to sit in the shade under its branches with a cold beer. In the UK’s heatwave that’s exactly what the Badger did to escape the sun’s rays, read, track online interests, and cogitate about life. He’s probably drunk more cold beer than prudent but chilling out in this way allows the mind to be stimulated by something you read, at least that’s the case with the Badger. You can predict neither the trigger in advance, nor how your thoughts will develop to a conclusion once they’re triggered. So, what caught the Badger’s eye and triggered the stream of thought that prompted the writing of this post? It was reading that an interdisciplinary team of scientists has found a new and sustainable way to recover gold from e-waste (see here and here). 

The Badger’s interest was piqued because of his metals/materials research background prior to a career in IT during which a latent interest in metals/materials never entirely disappeared. Gold, recovering it from e-waste, and e-waste itself, are fascinating topics given this metal’s unique properties. The total amount of gold ever mined makes just a 22-metre sided cube, and tiny quantities are used in smartphones, computers, and most other electronic devices. E-waste is any electrical or electronic equipment that’s been discarded, working or not. We all have some – perhaps an old MP3 player, smartphone, or tablet – somewhere in a drawer or cupboard. E-waste volumes, containing gold and other important elements, are growing but less than 25% of it is collected and recycled.  A new, sustainable, cheaper, and less hazardous way of recovering gold from it is an important development, especially if we stop hoarding our old devices in the first place!

Once triggered, where did the Badger’s thoughts end up? They meandered but concluded something about innovation, a subject that seems to be dominated in the mainstream by AI and new services in the virtual digital world. But here’s the point. None of this virtual digital innovation could exist without underlying ‘true physical innovation’ in the world of metals and materials. Without innovation in the science, extraction, processing, manufacturing, and recycling of condensed matter none of the electronic devices we rely on in the online digital world of today and tomorrow would exist. Youngsters looking for a stable and fertile career path should thus consider the physics and chemistry of metals/materials because the world today and in the future  depends more and more on innovation in this field. One thing, however, is a certainty. You never know what will trigger your thoughts and where they will take you if you relax with a cold beer in the shade under a tree in a heatwave….

Software – The invisible infrastructure of daily life

We’re living in a world where software is the invisible infrastructure for daily life. There doesn’t appear to be any quantitative measure of what proportion of everything we use actually contains software, but it’s not outrageous to assert that almost everything we use depends on it. Whatever the real proportion is, with the advent of AI and the Internet of Things (IoT) it’s only climbing. Software has blossomed from primitive beginnings to become crucial in every facet of life in less than 75 years. In the 1950s software wasn’t a ‘product’ but something bundled with hardware used primarily for scientific calculations, military simulations, and data processing. Most of it was written in machine code or early assembly languages tailored to specific hardware, and it was written by the same engineers who built the hardware. A large program was a few thousand lines of code loaded manually via cards or magnetic tape. FORTRAN only emerged in 1956 and the term ‘software engineering’ was only coined in the late 1960s/early 1970s.

How things have changed. Today’s internet, search tools, social media, cars, medical devices, satellites, aircraft, trains, weapons, smartphones and so on depend on many, many millions of lines of code, see here and here for example. Modern health, financial, energy, government, intelligence, and defence capabilities all rely on huge amounts of software. Indeed, any item in our homes that can sync with a smartphone app contains software. In less than 75 years software has changed life, taken over the world, and become professionalised in the way it’s produced. Writing machine code for specific hardware in a way that ‘every byte counts’ has evolved into the professional, ever changing and improving, discipline of software engineering which incorporates design and development processes, methods, standards, tools and techniques that ensure that production software meets requirements, is scalable, tested, robust, maintainable, secure, and performant. Software engineering, of which coding is today just a subset, continues to evolve with, for example, the likes of Microsoft and Google anticipating that AI will render hand crafting of code redundant by the end of this decade.  

The software woven into our lives in recent decades has brought immense convenience and transformed communication, public services, business, and conflict, as world events illustrate. Today it’s undeniably critical infrastructure, but software, unlike most infrastructure, isn’t something you can tangibly touch! Compared to what existed 75 years ago, the software in use today is a vulnerable sprawling metropolis with vulnerabilities that bad actors can use to cause disruption. Are we safer today than in the 1950s now that everything depends on software? Hmm, that’s debateable, but what the Badger senses is that even with the advent of AI, software engineering as a discipline and the career prospects for software engineers focused on solutions, security, quality, robustness, and testing rather than coding, are good for many, many years yet…

Smartwatch, traditional watch, or both?

Is there a smartwatch from the likes of Apple, Samsung, Huawei and others, on your wrist? A decade ago, smartwatches were essentially novelties for tech enthusiasts. Today they’re mainstream. In the ten years since Apple unveiled its first watch  they’ve become a popular, wrist-worn, command and control centres for time, date, productivity aids, communication, fitness and personal health.  Globally there are more than 450 million smartwatches in use, and the number is expected to rise to ~750 million by 2029. Many people are turning to smartwatches from traditional mechanical/ automatic watches because they do significantly more than just tell the time and their capabilities continue to expand as technology marches on.

So, does this mean the traditional wristwatch, which first appeared in the 19th century, will soon be obsolete? Many say yes, but the Badger thinks otherwise. A traditional mechanical/automatic watch performs its purpose of providing the time and date  extremely well. Accordingly, it’ll be around for many decades yet because it has design simplicity, is robust, doesn’t require frequent battery charging or software updates, and is immune to cyber threats. Traditional watches provide their core function – the time and date – in aesthetically pleasing hardware that can be chosen to suit any lifestyle or occasion. Many think that a traditional watch’s lack of connectivity to today’s online world is a disadvantage. On the contrary, the Badger thinks it’s an advantage.

Smartwatches, of course, come in many guises but one thing fundamentally drives their design, namely convenient access to the services and information that underpin the rhythm of life in the modern digital world. Their manufacturers routinely enhance their design, functionality, and usability as a wrist-based hub for time, date, and things like voice and message communication, activity and fitness tracking, and personal health monitoring and diagnostics. As a convenient computer on our wrists, however, they are yet another screen that grabs attention. They need regular battery recharges and software and security updates to protect against cyber threats. Like smartphones, there’s also a better model coming soon!

So, are smartwatches rendering traditional mechanical/automatic watches obsolete? No. Why not? Because most people today understand the dangers of the digital world, and they are increasingly aware from world events of the inconvenience and turmoil that can ensue when key energy, communication, and online infrastructure is damaged. Their smartwatch could be rendered useless in such circumstances, whereas a traditional mechanical or automatic watch will continue to deliver its core function, time and date, unabated. So don’t ditch your traditional watch for a smartwatch, have and use both (as the Badger does). You will then always be able to access the time and date on your wrist should a digital disaster occur. The obsolescence of traditional watches is a long way off because in the current world climate it’s prudent to have non-digital contingencies for unexpected digital difficulties…

Everyone is a salesperson…

Good senior leaders and managers often enjoy being invited to speak to employees attending company training courses. The Badger certainly did. His sessions not only always delivered a message relevant to the training course but also provided an opportunity for attendees to ask questions about any subject close to their heart. Their questions were often diverse and required quick thinking to answer, but that’s what made the sessions fun! It was always rewarding to see attendees relax during the sessions, to hear their responses to the Badger’s answers, and to observe body language when the audience stayed silent. It was also pleasing when ‘light bulb’ moments spread across the attendees faces if an answer triggered a rush of understanding.

As a leader strongly focused on IT delivery, the Badger spoke mainly to training course groups from the business operation, delivery, and technical communities. Their questions were sometimes unusual. For example, on one occasion the Badger was asked ‘I hear senior people utter their favourite sayings frequently, but which of these have merit because they encapsulate a truth?’  The Badger gathered his thoughts for a moment before rattling off a string of common phrases in use in the company and signalling that they all had merit because they all captured a truth relevant in any company. The string included, for example, the following:     

‘What gets measured gets done…

‘You don’t jump high unless the bar’s set high…’

‘If you bring problems then bring solutions too…’

‘Time is precious, get to the point…’

‘Decisions aren’t about making everyone happy…’

‘Everyone is a salesperson…’

This last one prompted an indignant response from a couple of attendees who were software engineers. They were contemptuous of  salespeople and unequivocal that  they were not, and never would be, a salesperson. On enquiring if they interacted with peers in their client’s organisation on their projects they answered yes. The Badger pointed out that they were actually representing the company when they interacted with external people, and that made them a salesperson of sorts regardless of their job title. He also highlighted that being ‘sales aware’ during such interactions was important because they were well placed to identify the early signs of potential avenues of further work which could be fed into the company’s main sales machinery for qualification and potential follow-up by others. They remained unpersuaded, and so the Badger pointed out that without sales the company would fail, and they would be out of a job! Their facial expressions changed as a ‘light bulb’ moment hit home on realising that even technical IT staff must be commercially and sales aware and acknowledge that ‘Everyone is a salesperson’ of sorts. ‘Sales’ is not a dirty word. It is at the heart of a company’s success and the employment of everyone within it. Remember, everyone is a salesperson…