“Research indicates that senior executives rate the lack of ‘understanding the importance and difficulty of integrating cultures’ as a major cause of integration failure.” – www.globalworkshop.com
A Fool-Proof Way to Avoid a Leading Stumbling Block to Success?
It’s no secret that plenty of mergers don’t work. The University of Minnesota Strategic Management Research Center claims the majority fail: “At the same time, the success rate of M&As has been poor, some estimates put failure rates as high as 60 to 70%.”
Depending on whether success is defined by shareholder value, customer satisfaction, or some other measure, most research places the merger failure rate somewhere between 50% and 80%.
The problems associated with trying to make merged companies work are all too concrete. And the chances for success are doomed if the corporate cultures of the companies do not mesh. When a company is acquired, the decision is typically based on product or market synergies, but cultural differences are often ignored. It’s a fatal mistake to assume that human relations issues are easily overcome. However, merging corporate cultures no longer needs to be left to chance.
Now, cultural due diligence is available to determine how merging organizations can succeed in their efforts to combine two or more corporate cultures.
Beating The Odds: How To Make the Most of Merger
This simple assessment determines for each culture what is important to the employees from a personal perspective, how they perceive their current culture and what direction they would like their organization to take.
Comparing the results of the merging cultures shows where they share the same point of view, where they differ, potential problem areas, current mutual strengths and what one might offer the other. The tool will help ensure the success of compatible mergers and avoid the disappointment that results from well-intentioned but truly incompatible mergers.
A complete, in-depth report can now be provided to all concerned stakeholders that clearly shows the strengths of the merging organizations, the potential pitfalls and specific, actionable recommendations for maximizing the potential success of the planned merger. Cultural due diligence can be conducted with the same rigor and depth historically focused on financial, operating and market data. Now you can have “hard” data on the “soft” but vital issue of culture.
The Merger Compatibility Assessment can be used to determine how merging organizations can succeed.
Going Beyond Integrated To Energized
Data from the Merger Compatibility Assessment is integral to cultural integration. Leadership Beyond Limits works with stakeholders to determine the degree of compatibility. Organizations that proceed with merging will benefit from specific recommendations to guide the process. Through our unique DEEPER process the organization will connect with the values and beliefs of all stakeholders to not only successfully integrate, but flourish.
How Does a Leader Know If This Is Right For Their Organization?
Why not find out? Contact us today to set up a telephone consultation with Tom. There is no cost or obligation for this consultation. Leadership Beyond Limits works exclusively with clients who share our passion for bringing meaning and value back to work.
Contact Leadership Beyond Limits to explore maximizing the full potential of your organization.