People, Respect and Change Management
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Taking advantage of M&A to evaluate both cultures is critical – and provides an excellent opportunity for both cultures to evolve and work well together.
Really like the point above about thinking about the cultures of the customers as well – this would have a tremendous impact on the deal.
I think we can pay attention in 2 aspects, first: in my opinion if the cultural gap is to “abyssal”, this red flag should be appear early; second: if the risk is to high and the target represent a threat to buyer, the position of the buyer could be a hostile takeover.
“The means justify the end”!!! unfortunately!
And, before the process gain a momentum (understand waste time and money), it led us to corroborate with the importance of a cultural and personal DD as early as possible, before the moment the target’s name exit from a project pipeline.I completely agree! One big way you can show respect to the target company is by openly communicating with them. Especially at the start, ask what their different preferences are for things and work to accommodate those into your practices. Don’t be a powerhouse company that forces people to do things your way.
People and culture, and alignment of both for acquiring company and acquired company is very important, however, the financial viability of a deal has to be the first trigger for a successful acquisition.
I agree with this 100%. Putting people first is key to achieving success in any area, but especially in the integration process.
Totally agree. Some acquirers impose their own set of culture so strongly that all the key employees leave, which defeat the purpose of acquiring the target.
Creating a culture of mutual respect, assertiveness and psychological safety in the new company, particularly extended to the employees of the acquired company, goes a long way in creating a spearheaded organization guided by a unified goal. Defining with precision and training everyone on encouraged behaviors, unacceptable behaviors (manipulation, badmouthing, us vs. them) goes a long way. However the management of the new entity must epitomize and live the culture (be the change you’d like to be in the world) for it to work by cascading down relationships excellence. Without systems integration (organizatioal, IT, ERP) and financial decisiveness though, it will be impossible to create the value that drove the acquisition in the first place.
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