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At a board meeting, you pitch an idea to acquire one of your smaller
competitors. The market and financial data clearly support your case. A
director pushes back, citing that fewer than half of mergers and
acquisitions ever meet initial expectations, even when front-end analysis would
have suggested otherwise. He continues by pointing out that most deals fall
short due to communication issues, "culture clashes," and other people issues.
Another director joins in and points out that your company has a very different
culture than the target company. Your company is large, hierarchical,
conservative, and process-oriented. The target company is small,
entrepreneurial, risk-tolerant, and rewards "flying by the seat of the pants."
The directors want to know how you plan to address these issues. Are you
prepared? What's your plan?
Solution:
Research does indeed indicate that less than half of all mergers and
acquisitions are ever deemed "successful." For those that are not "successful,"
ineffective communication and "culture-clash" are regularly identified as the
primary culprits. Because of our customer intimate relationships with our
client organizations, we are able to add value during the following four phases
of Integration Management.
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Because of our customer intimate relationships with our client organizations,
we are able to perform due diligence of a target company in order to assess the
"goodness of fit" of the two cultures
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We identify business/cultural barriers to integration success
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We assess the talents/styles of the leaders
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We help select and develop an Integration Manager(s)
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We facilitate the development of an initial Communication Plan
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After the merger or acquisition, we help facilitate integration of the cultures
and organizational structures by working with the combined executive team to
create and help implement a systematic, comprehensive, twelve-month Integration
Plan
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We help foster accountability and cross-organizational problem solving through
the formation and facilitation of Integration Initiative Teams
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During this phase, we conduct process audits and collect real-time feedback in
order to make adjustments to the Integration Plan
,if necessary
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We continue to work with the Integration Initiative Teams to drive change
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We develop and facilitate Leadership Development Programs
that include participants from across the newly combined organization
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The programs foster cross-pollination of ideas and "best practices," cultural
assimilation, and the use of common tools, processes, and language
Benefits and Outcomes:
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Collecting critical due-diligence data on a target company's management,
culture, potential barriers, and "goodness of fit"
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Delineating organization structure recommendations to maximize efficiencies and
performance
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Developing a Communication Plan
for communicating to the combined workforce in an effort to dispel rumors and
allay misplaced fears while generating excitement for new opportunities
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Formulating a twelve-month Integration Plan
that outlines a process for effective integration of systems and cultures
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Creating Leadership Development Programs that
include participants from across the newly combined organization that foster
cross-pollination of ideas and "best practices," cultural assimilation, and the
use of common tools, processes, and language
<< back to Organization-Level
Professional Solutions
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