How Culture Operates – First 3 Months of a Merger

 

This post is by Jerome Parisse, originally published on the Walking the Talk website.  It is one in a series that Jerome and I are putting together to introduce a unique Culture Masterclass for M&A Executives, developed jointly by Isely Associates International and Walking the Talk. 

Two organisations come together

Each group gets to see what the other looks like.  Specifically what you see are the behaviours, symbols and systems of the other organisation. They may look like you, even talk like you.  On the surface they may be in the same business, and therefore undertake the same activities.  But very quickly you will notice that they are not the same as you.

Of course you will have heard some information already about how the other tribe operates.  Some of your members will have been involved in due diligence activities, or planning for the future acquisition.  Others may have worked there previously in their career.  Perhaps the other tribe was a past competitor, or someone you met at industry functions.  They might have been a customer, or a supplier.  You may share a parent, and be two divisions of the same group.  They will have a reputation regarding how culture operates, and you will know what it is.

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M&A: How to Avoid Culture Clash

This post is by Jerome Parisse, originally published on the Walking the Talk website.  It is the first in a series that Jerome and I are putting together to introduce a unique Culture Masterclass for M&A Executives, developed jointly by Isely Associates International and Walking the Talk. 

Every merger or acquisition is undertaken to enhance business value, yet many fail to achieve expected outcomes because of a failure to effectively manage cultural risks and harness cultural opportunities. Data shows that up to 50% – 70% of mergers and acquisitions fail to achieve expected returns. In most of these underperforming deals, culture clash is at the top on the list of reasons for failure.

 

It does not have to be like this.

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