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Culture and Process Compatibility for Mergers and Acquisitions
- What steps must be taken to establish the desired culture of the new organization?
- How will the values of the companies enable or inhibit capturing the anticipated synergies?
- What effect will each company's informal structures and policies have on the new organization's performance?
Whenever a merger or acquisition occurs, there is a blending of cultures. The Mission, Vision and Values of one or both companies will be modified. The effectiveness with which this is accomplished will be a major factor of the success or failure of the new organization. If successful, it can empower the new organization to move forward as a stronger entity with a unified purpose taking full advantage of the synergies the new organization can create. Conversely, if done poorly, it can create a dysfunctional system where people are trying to protect their own self-interests and often end up working at cross-purposes.
There are also new processes that must be put into place. In some instances, one company's process will be selected. In other instances, such as planning and problem-solving, new business development, and a host of day-to-day work processes, individuals from both organizations will bring their own way of doing things. Capturing the best practices from these various processes and implementing them effectively has a profound impact on the success of the new entity.
MLD's expertise in organizational development and process management assists our clients in identifying where cultural and process factors will either enable or inhibit success of the new venture. With this understanding, the management teams can take specific actions to enhance the enablers and minimize or eliminate the inhibitors. Both companies can then establish the specific actions necessary to prepare their respective firms for the acquisition or merger. This results in the creation of a stronger, more unified organization.