Mergers & Acquisitions
To combine the best of two ways, you must preserve the identity of both...
According to McKinsey, 70% of mergers and acquisitions fail to achieve their stated objectives. A merger represents a meshing of two distinct work cultures. Two ways of doing things coexisting in the same space. Whilst most mergers focus on the ‘tangible, such as products, markets, customers etc, the real challenge is managing the ‘intangible’. The key issue is deciding what you must honour from both sides to preserve both organisation’s unique sense of identity.
Success depends on preserving identity…
According to McKinsey, 70% of mergers and acquisitions fail to achieve their stated objectives.
In our experience, this is almost always related to cultural differences between the two entities. In most cases, organisations focus on the obvious and ‘visible’ things, such as expanding their product mix, integrating their IT systems, updating marketing strategies and expanding their customer base. All good so far…
The challenge for any merger is managing the intangible cultural aspects of the merger process. Invariably, in any purchase, the greatest investment relates to human capital. Your people.
It is your people who have the knowledge, skills, capabilities and customer relationships that represent the real value and the potential for leverage from a merger. Whilst there will be some economies of scale, staff will usually state openly that they are on board, yet most will give you 6 months to decide whether or not to stay or go.
The answer lies in retaining key staff is preserving the identity of both sides of the house, those things that make both places unique. Honouring these elements is essential to the merger's success and protecting your ROI.
What we do…
i-Adapt cultural integration services ensure that you capitalise on the best of both cultures. i-Adapt provides a range of cultural integration services in the following areas:
A complete audit of both cultures to identify the key elements that must be preserved in order for people to stay.
Points of similarity and synergy and points of difference and tension.
A roadmap that covers the tangible merger elements i.e. strategies, products, markets, systems, processes, customer base, sales and distribution and stakeholder communications.
A roadmap that covers the intangible elements i.e issues of identity, trust, cooperation, teamwork, values and beliefs, and the ‘vibe’.
A comprehensive risk analysis that identifies your greatest exposures and those things that could potentially derail your merger process.
Greatest opportunities for leverage and business growth.
Skills and capabilities audit. What’s required, duplicated or what’s missing in order for the merger to succeed on its objectives?
Facilitating a strategic offsite retreat to create the new integrated business plan and what it means for every department - in precise detail.
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Get in touch today to learn more about how i-Adapt can help your business!
info@iadapt.com.au
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