Podcast: Driving Change and Accelerating Growth

In this podcast, Michael Whelan, Director at CRF, and Gillian Pillans, Research Director at CRF, discuss our Driving Change and Accelerating Growth research. They explore how Gulf-based organisations are leveraging international expansion and mergers & acquisitions (M&A) to drive growth, and the critical – but often overlooked – role of HR in this process.

Transcript

Michael: Welcome to the CRF HR Insights podcast. I’m Michael, Director at Corporate Research Forum and Strategic Dimensions, and I also head up CRF’s work in the Gulf region.

Gillian: And I’m Gillian, Research Director at CRF.

Michael: Today we’re looking at how Gulf-based organisations are using international expansion and M&A to drive growth – and, importantly, where HR fits in. Because let’s be honest, these deals can be high-risk, high-reward, and HR’s role is often underplayed.

Gillian: Exactly. Our latest research explores how HR can step up and lead – not just support – when it comes to creating value through international growth.

Michael: Let’s start with the big picture. What’s behind this surge in outbound investment from Gulf companies?

Gillian: There’s been a clear acceleration, driven by national agendas like Vision 2030 in Saudi Arabia and “We the UAE 2031”. Organisations are being encouraged to scale internationally – to diversify, gain influence, and build global capabilities. In 2024 alone, 701 M&A deals were recorded across the Middle East, worth over $92 billion.

Michael: That’s serious momentum. But with so much activity, what are the biggest risks organisations need to watch out for?

Gillian: Globally, up to 90% of M&A deals fail to deliver the value expected, and in many cases, it comes down to people-related issues, like culture clashes, poor communication or leadership gaps. That’s where HR should be central. Unfortunately, too often, it’s still brought in too late or treated as an afterthought.

Michael: Why is HR still on the sidelines? Surely most leaders know by now that people are critical to integration?

Gillian: They do – 90% of executives say human capital is key to deal success – but less than half actually involve HR when shaping deals. Often it’s about capability and positioning. HR teams may not have the M&A experience or aren’t viewed as strategic partners early on.

Michael: It sounds like the early stages are often driven by finance and strategy – does that mean HR sometimes comes in a bit too late?

Gillian: Absolutely. And if HR isn’t involved from the start, you risk overlooking the very things that make integration work, like retaining talent, aligning leadership, and navigating cultural differences.

Michael: Our research talks about the four stages of M&A where HR can really make a difference – preparation, target identification, due diligence and integration. Can you walk us through those?

Gillian: Sure. First is Preparation, or building the internal capability to take on M&A. Preparation is all about laying the groundwork. HR must be seen as a credible partner from the start, not just brought in to execute once the deal is done. That involves building internal M&A capability, being clear on the businesses’ current capabilities and ensuring the organisation is fit to take on the task of M&A.

Michael: Next is target identification. This is where HR is often left out, right?

Gillian: Yes – and it’s a missed opportunity. HR can use tools like Strategic Workforce Planning to spot capability gaps and help scan for acquisition targets. Talent teams often have deep insights into which organisations are producing quality candidates – and that can help shape the business case and identify targets.

Michael: The due diligence phase often zeroes in on legal and financial details. How should HR approach this?

Gillian: HR’s focus should be on one key question: can this deal actually deliver value? That means looking at whether the right people, leadership, and organisational capabilities are in place – or what would need to change to make the deal work. It’s about going beyond compliance and asking, “Do we have what we need to bring the business plan to life?”

Michael: And finally, integration. This is when things can start to get really complicated.

Gillian: Exactly. Integration is where value is either realised or lost. HR must support culture evolution, not just alignment. Leaders need to role model new behaviours, and communication must be clear, consistent, and practical – not vague statements like: “we’re becoming world-class”.

Michael: Right. Employees want clarity, not buzzwords.

Our research really highlights why HR needs to be at the heart of international expansion and M&A. But it also shows there’s still work to do – like building the right skills, forming stronger partnerships with the business, and getting involved much earlier in the process.

Gillian: Absolutely, the opportunity for HR to shape lasting value is huge – especially here in the Gulf. We dive deeper into this in our Driving Change and Accelerating Growth research. If you’d like a copy or want to learn more about how we’re supporting HR teams in the region, feel free to reach out to michael@crforum.co.uk.

Michael: And with our new office in the Middle East, we’ll be running a greater range of learning events across the UAE from late 2025 into 2026. If you’re based in the Gulf, we’d love to chat about your HR learning priorities and how CRF can help build your function’s capability. Also, don’t miss our new SHRM-accredited On Demand HRBP programmes. These AI augmented learning programmes are available to members and non members, can be completed at the learner’s own pace and are supplemented with a range of interactive tools to ensure maximum learning impact. They are the perfect tool for HR professionals who are looking to develop their skills to help organisations deliver on the challenges we have just discussed

Gillian: You can find out more at crforum.co.uk or reach out to Michael by email at michael@crforum.co.uk. Thanks for listening – and we hope to connect soon.

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We’ve used AI to produce this podcast as part of our ongoing commitment to innovation and to offer content in more accessible formats for our network – building on themes from our previous report Harnessing AI and HR Tech to Enable Business Success.