The power of the “why” to champion change in your organization.

In the realm of mergers and acquisitions (M&A) or business transformations, the human aspect often gets overlooked in favor of technology or process changes. 

Many organizations develop well-structured plans to roll out new systems or implement new business workflows, but without a proactive approach to managing the people side of these changes, they run the risk of high turnover, resistance, and low productivity.

To truly harness the opportunities transformation offers, it’s essential to not only manage the technical aspects but also to focus on the people who will be directly impacted. Change management is a critical part of transformation, as it ensures that employees are equipped with the right knowledge, motivation, and support to successfully navigate the change.

The importance of embedding change management within the core project governance. 

SEI follows a strategic, five-step framework that starts with creating awareness of the need for change, moving to desire for the transformation, ensuring employees have the knowledge and ability to adopt the new ways of working, and ultimately reinforcing the changes to make them stick. Engaging employees with the why behind the change, and ensuring leadership sets a clear vision, helps foster alignment and excitement for the transformation.

When employees understand the purpose behind the change and see how it aligns with their personal goals and the organization’s broader strategy, they become more engaged. This alignment—both top-down from leadership and bottom-up from employees—fuels momentum and creates a path to success.

As firms move through M&A or transformation, particularly in industries like wealth management, a key part of the "why" will often be the need to modernize or streamline technology. Early discussions about technology infrastructure are crucial. Companies must decide if legacy systems will remain in place or if the merger presents an opportunity to adopt modern platforms. The alignment of strategic goals, both in terms of people and technology, ensures that transformation is successful not only for employees but also for the future competitiveness of the firm.

Leadership at every level: Empowering frontline influencers in M&A.

In any large-scale transformation, especially in the context of M&A, leadership often focuses on the senior executive team or core change agents. However, true transformation doesn’t come from the top alone—it also comes from within the ranks. Organizations often underestimate the impact of their frontline employees and the influence they have on driving change.

At SEI, we recognize the importance of identifying and empowering influencers—individuals who may not hold formal leadership titles but are highly respected within their teams and can drive the change process through peer-to-peer influence. These influencers are often the early adopters of new systems and processes. By equipping them with the tools, knowledge, and clarity to communicate the benefits of the transformation to their peers, organizations can create a grassroots movement that accelerates the adoption of change.

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Engagement isn’t just about pushing top-down directives; it’s about ensuring that employees at every level have a voice and a role in the change process. We encourage the establishment of a change agent network—a group of trusted employees who act as liaisons between the project team and impacted stakeholders. This network can help reinforce key messages, gather feedback, and bridge gaps between different groups within the organization.

As technology plays an increasingly prominent role in M&A, it’s also vital that firms understand how to manage technology integration effectively. Without careful planning, integrating different tech ecosystems can lead to disruptions and erode the value of the deal. An early discussion about technology infrastructure, and building a framework for integration, is necessary to avoid these pitfalls. Involving key influencers in these conversations can provide valuable insights, ensuring that both the people and the systems are aligned for a successful merger.

When change is framed as a shared effort—where employees, not just leaders, feel ownership—it creates a more sustainable transformation. This approach mitigates resistance, reduces the chances of low morale, and boosts the overall success of the initiative.

Active listening can help turn challenges into opportunities during M&A.

As organizations embark on M&A or business transformations, it’s not just about implementing new systems; it’s about addressing the challenges people face during times of uncertainty. Employees may feel disconnected, anxious, or resistant to the change. Yet, one of the most powerful tools leaders can wield is the ability to listen.

At SEI, we place a strong emphasis on listening to the concerns and feedback of employees throughout the transformation process. Listening isn’t just about gathering opinions—it’s about genuinely engaging with employees to understand their perspectives and address their concerns in real time. In the context of M&A, where change fatigue can be a major obstacle, this empathetic approach can help ease the transition.

A key element of this is the creation of employee surveys and ongoing feedback loops. These tools provide a structured way to hear from employees at all levels, capturing insights into potential areas of resistance or frustration. But listening alone isn’t enough. Leaders must respond to this feedback, making adjustments as necessary and communicating those changes back to the organization. This reinforces the idea that employees’ voices matter and that their input drives the transformation process.

Moreover, one of the biggest risks in large-scale change initiatives is change fatigue—when employees feel overwhelmed by constant shifts or lose enthusiasm for the transformation.

According to a Prosci study, 78% of employees report being at or beyond the point of change saturation.¹ This makes it all the more important to proactively manage these concerns, address workloads, and ensure that employees understand how they will be supported throughout the process.

In the wealth management industry, technology is a key driver of transformation and can also be a source of friction. During M&A, firms need to ask tough questions about how their technology systems will be integrated. These discussions should be part of the broader feedback loop with employees and stakeholders to ensure a smooth transition. Clear communication about how the merger or acquisition will impact technology—whether systems will be consolidated or retained—helps reduce uncertainty and resistance.

Incorporating feedback into the change process, offering clear communication, and celebrating wins ensures that the transformation is not only managed well but also becomes part of the company’s long-term culture. Leaders who listen, communicate regularly, and act on employee feedback can create lasting change that drives success for both the individuals involved and the organization as a whole.

Five key takeaways for handling resistance.

Successful business transformation is never easy, and resistance is a natural part of the process. However, by taking a balanced approach that integrates both process and people, organizations can manage resistance more effectively and maintain momentum throughout the journey.

1. Keep leadership engaged: Ensure that leadership remains visible and actively supports the change throughout its lifecycle.
2. Be open to feedback: Actively solicit and respond to employee concerns and feedback, making it clear that input is valued and acted upon.
3. Don’t overcome resistance—embrace it: Instead of dismissing resistance, use it as an opportunity to engage and address concerns, ensuring that all stakeholders feel heard.
4. Elevate rising stars: Identify and empower key influencers within the organization, allowing them to take on roles that help drive the change initiative forward.
5. Maintain momentum: Celebrate wins and continue reinforcing the benefits of the transformation. Keeping stakeholders excited and engaged will help ensure long-term success.

Incorporating insights from the technology side of M&A, particularly questions surrounding system integration and due diligence, further solidifies the foundation for smooth and successful transformation. Clear and early communication about technology integration, and the involvement of key stakeholders in these decisions, reduces friction and sets organizations up for long-term success.
 

¹ "Introduction to Change Portfolio Management," Prosci, 2025

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