M&A Culture Integration

M&A Culture Integration

“70-90% of M&As are abject failures in large part due to obstacles resulting from cultural differences.” (HBR 2016)

In 2015, a global Fortune 100 company asked us to conduct an internal investigation to determine if a more rigorous approach to culture assessment as part of M&A due diligence and/or integration would be a worthwhile investment. Our findings confirmed that the degree of effort invested in understanding and managing cultural differences determined the level of success of the acquisition. The less attention given to culture, the greater the problems during integration. Loss of critical talent, lagging productivity, compliance and risk management issues and delayed integration were just some of the issues described by leaders. This resulted in the development of a set of culture tools to support leaders, HR/OD and integration team members in understanding, exploring and planning during M&A. The diagram below is an example of one of these tools.

Your Strategic Partner

As your strategic partner, we work hand-in-hand or behind the scenes providing guidance and coaching to your team to optimize the effectiveness of your culture integration and change efforts. Where appropriate, this includes the customization and/or use of our methodology, materials and tools, as well as the development of additional resources.
Why Partner With Us?

  • In-Depth Knowledge Transfer and Capability Development - Our partnering approach provides your team with an intensive learning experience. Working in partnership with our culture experts, they acquire deep knowledge of proven approaches and methodologies for conducting effective culture integration and change.
  • Repeatable and Reusable Methodologies – The methodologies and materials provided and developed can be applied across the merged business, as well as in future acquisitions and culture change initiatives. This allows for economies to be achieved by mitigating initial costs with long-term savings.
  • Proven and Reliable Approach and Expertise – We’ve done this before. By providing proven methodologies, materials and our extensive expertise in culture integration and change we can all but guarantee you will avoid ‘culture clash’ and the potential this has to damage acquisition value.
  • Practical, Just-In-Time Approach – We recognize that people in both organizations are struggling to complete business-as-usual activities and priorities, as well as integration activities. The methodologies and approach we use are designed to optimize their involvement by focusing on priorities and engaging the right people at the right time.
  • Accelerated Timelines and Results – Our approach draws on practices from agile development to achieve fast and effective culture integration and change. By focusing on short-term deliverables, an 80-20 rule to design and constant monitoring and course corrections, we help the change proceed in a quick and effective manner.

We are culture experts with over 30 years of experience in M&As and complex change. We are passionate about doing great culture work that really makes a difference. We love sharing our knowledge, learning and partnering with people like yourself. Call us today for more information.