Cultural integration in mergers and acquisitions

Merging corporate cultures

Cultural differences, diagnosis and prescriptions - Conduct research to determine differences within each corporation in regard to cultural strengths and weaknesses of their respective companies. Employees must know what is changing within their organisation. Correlation Both organizations operate mostly independently, maintaining their own cultures and correlating their activities, as needed. What are the main factors driving deal makers? Though many factors can ultimately derail a deal, achieving a cultural transformation and integration is among the most difficult tasks and can have one of the most significant impacts. Companies have to adapt to the world around them. Mega deals appear to be on the rise. You have to fight for values and be willing to sacrifice other values for the core values. When external changes happen, for example when a new generation of customers and employees emerges, the company has to change. I agree to have my personal information transfered to MailChimp more information It's free and I will never give away, trade or sell your email address.

An old friend of mine and management guru, Dr. Why do so many of their culture integration efforts fail? When pursuing a deal, cultural integration should be a core focus, given its ability to disrupt or damage the future viability of a merger post-close.

It appears easier to point a finger at culture than at a person, or a team, or admit to poor due diligence, overpayment, inept execution, or slow decision making.

successful mergers integrate cultures

Enter your email and this weekly blog will arrive in your email box. This requires companies to establish solid communication channels with employees and seek regular feedback on the success of the integration plan.

A cultural assessment will uncover similarities, as well as differences, that will impact integration efforts and strategic objectives. Early planning is key to developing a well-designed integration plan. So cultural change is permanent.

Cultural integration in mergers and acquisitions

Another study shows that no more than one-third of mergers or acquisitions are a clear success, one third are clear failures, and the remaining third demonstrate no benefit at all from the transaction. Communicate regularly and frequently using all new technological innovations and techniques such as social media, online platforms, gamification, and web-based employee forums. Such a process usually takes several iterations because there are so many parameters in play. Try not to hold onto old values of each respective company, but rather unify all constituencies around something new, fresh, and exciting for the future. And in order to ensure the expected return on investment is delivered, a great deal of planning around integrating company culture must go into the preparation. Track progress towards the ideal culture. Enable visualization techniques such as word clouds to enable common ground in regard to cultural integration. You also need them to feel secure in their job and valued in their position. Communicate Early and Often When people on the inside feel as though they are left in the dark, they are unlikely to jump on board with change. It must become a business process that is rigorous, structured and accountable.

You also need them to feel secure in their job and valued in their position. Survey constituencies every month with five short questions and report the findings fast through regular communications at all levels within the organization.

Nowadays there are much easier ways to do this, for example through leveraging questionnaires where you just have to answer one single question a day. Attempt to build consensus through social media such as SharePoint, Yammer and help overcome disparity and arrive at agreements.

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Seven Steps For Cultural Integration During A Merger Or Acquisition