A crucial factor in a successful merger and acquisition is a thoughtful integration of corporate culture. Statistics show that a significant amount of mergers and acquisitions do not achieve their desired results due to neglect of cultural issues. Here are some strategies you can adopt to ensure that the corporate cultures of your companies fit well together.
If employees are kept in the dark about changes taking place, they will probably feel insecure and distrustful. However, if you communicate openly about what’s happening each step of the way, they will more likely see the advantages of the integration and get on board. Employees need to know that you trust them and that their jobs are secure, and transparency helps to accomplish this.
In order to find common ground for integration, you have to compare the corporate cultures and evaluate the differences between them. Locating the discrepancies in the cultures helps you pinpoint what areas you need to work on to bring them closer together.
Have a Clear Vision of the New Culture
Once you have evaluated the cultures that you are integrating, you need to clearly define the new corporate culture you are creating. Cultures can be difficult to describe because they comprise the vision, beliefs, values, and behavior of the totality of company personnel. However, it is imperative that managers and supervisors are able to clearly describe and promote the integrated culture that you create through your merger and acquisition.
Celebrate the Integration
Let your employees know that the successful integration of companies into a new corporate culture is a cause for celebration. You are blending the best of your organizations into a whole that is greater than the sum of its parts. The future offers further growth and greater productivity.
For more advice on the blending of corporate cultures during the merger and acquisition of businesses, look to Rotay Capital Finance.