May 29, 2020 at 2:36 am #110438
Considering the human talent and culture of the organization is not only important in the acquisition decision, but often critical to integration. What are some of your thoughts on the keys to evaluating and executing these areas successfully? I believe it is cruical to understand the target culture of the combined company but who is the “cultural acquirer”? and how do you decide?June 19, 2020 at 5:48 am #111770
Billy Fok Kam LuenParticipant
I would what is the plan for the company once the acquisition is over. there must be a reason why the buyer want to buy this company, because of the talent that the seller has. change management needs to understand and address all these to all staff. identify the gaps, address it, and handle with care. but for sure that there will people object it and leave the companyJune 23, 2020 at 7:57 pm #111825
I am sure there are a number of methodologies used to analyze culture. It is very important to have high alignment on culture especially if the synergies require strong integration between the companies. Here are few things that can reflect on culture:
1. HR policy and procedure. This will show how aligned they are when it comes to setting the rules for employee conduct. If one company has few guidelines and rules while the other has a library for guidelines and rules and then enforces them with a system, then you know the companies most likely will not have alignment on culture.
2. Diversity. A lot has been written about the role of diversity on culture and innovation in a group. Looking at the diversity level of the companies will show how they mostly likely to work together.
3. Age groups, while not supported, I believe a review of the age groups can be a sign of trouble when integrating cultures. This should analyzed and followed with a survey to see how well the age groups impact culture.June 23, 2020 at 9:12 pm #111831
Nancee Roberson caldwellParticipant
Honest and open feedback from the start. Making sure communication plan is developed and everyone is on the same page with organized meetings and time lines. Understanding department and functions of departments and not assuming everyone does it the same way. Culture fit is key so coming in humble and learning their culture not with the attitude of we are replacing everything you have done here over the years.June 29, 2020 at 4:31 pm #111922
What I have been noticing from the M&As I’ve been part of (as Legal) is the HR is very little involved in the beginning of the process. Once they are involved, quite often the decision of moving forward with the transaction has already been taken. That being said, the HR role limits itself to find a way integrate the teams and culture. Their role should be: can the culture be integrated at all? If so, at what cost? They should have a voice BEFORE the decision of the deal is made.September 10, 2020 at 12:44 am #113127
I would strive to identify the strengths and weaknesses of each of the two company cultures and work to combine the strengths of each culture. Culture comes from the top down, so ensuring that the correct leader is there to combine the two cultures is paramount.September 21, 2020 at 3:05 am #113421
Indrama Yusuf Muda PurbaParticipant
This is very challenging since the culture is not about the related nation but also the system of working in the company. But I think first to communicate the goal or purpose, vision and mission of the company of the acquirer then we can see with different ways but still towards the same goal. But the very important is the system of working in the new company should follow the better one and should be integrated.November 1, 2020 at 4:14 am #114420
Hello, colleagues. In the spirit of synergies and value creation, I think I would look at the merger as an opportunity to elevate our collective culture. How might we leverage what is best in both companies in our pursuit of building a culture that propels company performance? Who are we now? What makes us unique? How do we want to do our work together? The merger can prove to be a culture booster shot for all employees.November 2, 2020 at 1:51 am #114446
I would suggest the approach of evaluating both the culture of the target and the acquirer and come up with a new set of cultural values for the merged firm. This is because, in most cases, there are good and bad culture from both firms, therefore the new firm need to adopt new set of culture that resonate well with the new set of employees. Culture integration plays a very major aspect of successful M&A.
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