Statistically speaking, more than half of all mergers lose value for their combined companies. We will let MBAs ruminate on their case studies, because we know the reason why so many mergers are not as successful as they should be; there is a culture clash. According to a study by Marsh Mercer Kroll, 50% of respondents found organizational cultural differences to be the largest issue they faced after the merger.
The news is not all bad, however. ExxonMobil merged in 1999, and it is currently the 7th largest company in the world. There is a reasonable chance that your child, your nephew or niece has seen a Disney-Pixar movie, such as WALL-E, Brave, or Inside Out.
At Culture Strategy Fit, we want your merger or acquisition to be as seamless as possible. Culture could take your company to the next level, or it could sink you. Check out the following few tips to understand the process for making your big corporate move effective.
1.Understand What You Are Launching In To
Look before you leap. While many managers understand this, they do not necessarily have the information that is critical for establishing synergy. The decision-makers sometimes do not even know what to look for.
Certain factors, as simple as the tone and style of emails, vary wildly from company to company. Communication breakdowns may threaten the efficacy of your business. Any difference could be a flashpoint of contention, so you should know what you will encounter
2. Decide What is Efficacious
When you are in the process of merging, you need to envision what the combined culture will be like. One company may have a unique way of innovating, where new ideas are developed or perfected. The other party may have a process for streamlining their administrative processes that establishes a cahin where value is added at each step.
The directors must decide what they like and what they would like to eliminate in each company. Your company is unique, especially if it has gone through a merger. You must decide what is going to be best for your own company.
Once you have data and know what you want, the only remaining issue is executing. You may decide to reset the timing of some operational chances, or provide training on some communication practices. Additional on-boarding support around decision-making may be vital to your merged company’s success.
Knowledge transfer is key here. Everyone should know as much as possible in order to move the needle. Amplifying your core competencies will be key, and when you have the information in front of you, the way forward is clear.
There are 15 key areas where culture differences have an effect on workplace effectiveness. Combining two companies might make you more agile in the modern business world, or it could mean big losses for shareholders. Since we are so experienced in this field, we recognize how important buy-in, mutual respect, and providing actionable plans are.
If you have any questions about corporate culture surveys, we have answers. Contact the experienced team of Culture Strategy Fit today.