Mergers often look great on paper – especially the dollars
and sense of it. Not all mergers are successful. One of the reasons many of
them aren’t as impactful as they could be, or even fail is because of company
cultures that do not align. It’s
sometimes difficult, but possible to predict and proactively work to resolve.
Management
must decide which corporate culture to adopt or if they want some sort of
combination of the two cultures. This is best done as closely as possible to
the onset of the merger. Otherwise, the uncomfortable transition stage going
from what life is for employees today vs. post-merger can lead to reduced
productivity or even paralysis of the workforce.
Effectively combining two different corporate cultures
requires management defining broad cultural objectives. Such objectives are laying
out the ground rules of anticipated leadership structure and behavioral norms
for employees. The ideal or the smoothest transition would be to try to change
a little as possible. In most merger situations, one company culture will arise
as more dominant than the other. It’s it important to protect that while also
preserving certain parts of the other entity. Specifically, the focus should be
on protecting the elements of the company culture that contributed to success.
Once the changes have been identified, management must
communicate them as soon as possible. Again, with the focus on being as specific
as possible. This will reduce confusion and allow for a quicker transition,
avoiding unnecessary productivity losses. It is also important to allow
feedback from the employees to gauge what changes are or are not working. This
is the first step to deciding if further changes must be made.
If you need assistance navigating the tough road of combining cultures - let us help you!
E-mail: info at connorcaitlin.com Twitter: @connor_caitlin
