Merging Organizational Cultures

Merging Organizational Cultures: Integration Improves ROI on Mergers

Graphic courtesy of Denison Consulting, alliance partner of Corporate Culture Pros. © 2011.

The Issue

Most mergers are considered a failure – 65-75% fail to deliver the promised ROI and synergies in the form of profitable growth.

  • The deal is signed, the honeymoon is over, your integration team has left the building – but the magical results aren’t there.
    Why aren’t people more enthusiastic?  Why has productivity dropped?
  • Why do acquired company employees still want to do it “their way” when you’ve made it clear it’s “our way” now?
  • Why are leaders escalating turf wars when they were so nice in the deal stage?
  • Does corporate culture really matter in driving the financial performance you are seeking?

If your merger reality is not delivering the ROI you expected, maybe it’s time for due diligence on the culture.

 

What We Do

People don’t resist change – they resist being changed.

  • To address the high failure rates of traditional approaches to merger integration, we define corporate culture integration goals from the beginning, so when the merger happens you are accelerating the promised results.
  • Our step-by-step approach identifies the desired corporate culture post-merger, defines “fit” issues before and during the due diligence stage, and spells out an effective approach to creating a unified entity.
  • Preserving essential elements of the identity on both sides is crucial – identifying what should change and what should NOT change.

 

Results You Can Expect

  • An objective and clear language to measure culture fit, what to do about it, and how to help two (or more) companies build a unified, stronger version of their original cultures.
  • Employees on both sides stop talking about “us v. them” and create a “new tribal identity.” (This must happen to realize the productivity and performance goals for the merger).
  • Before or after the deal, assessing cultural fit and building a plan for it, will make your integration smoother.

Read about typical client results