PMI – often an afterthought?

This topic contains 2 replies, has 3 voices, and was last updated by  Yoke Chang Tan 5 months ago.

Viewing 3 posts - 1 through 3 (of 3 total)
  • Author
    Posts
  • #117068

    Belema Obuoforibo
    Participant

    If a lot of mergers fail due to poor culture alignment etc, does it not suggest that PMI is often an afterthought? That the decision to carry out the merger was already made, and then management decided to plow on with it, and then deal with any integration issues as an afterthought.

    #117319


    Participant

    Yes in a lot of cases it may be an afterthought, which obviously would negatively impact the success. But there could be other reasons why mergers may fail even if there is a post-merger integration team working on it. the Daimler Chrysler merger is an example of where integration was planned well in advance but still miserably failed because of how it was managed. The following things are important as well:
    1. Not being involved from the pre due diligence and due diligence stage and therefore not being clear about the strategy of the acquiring company or the goals and synergies sought
    2. Not having the right team members in the integration team. Doing PMI but with the help of the regular business as usual leaders who may not have time or the competency can also result in failures
    3. Not having the right sponsorship from the top leadership can be another factor.

    #117610

    Yoke Chang Tan
    Participant

    I think there are also cases where companies thought they could change / solve the culture issue but in reality (after merger), it is not an easy task.

Viewing 3 posts - 1 through 3 (of 3 total)

You must be logged in to reply to this topic.

Loading.. Please wait