The Human Side of Mergers
“Mergers are like marriages. They are bringing together two individuals. If you wouldn’t marry someone for the ‘operational efficiencies’ they offer in running a household, then why would you combine two companies with unique cultures and identities for that same reason?”
- Simon Sinek, Author / Speaker
Most mergers fail due to culture issues*
Of course, the purpose of merging and integrating companies is to bolster the strength of the organization. This makes perfect sense. But if we neglect to explore the differences and similarities of the cultures, the behaviors and expectations of the people, and the values and norms of the leaders, we will have a very hard time maximizing the value of the integration.
*according to a SHRM study
The impact of integrations on small companies
When the organizations are small, the felt impact of integrating two separate companies increases. When employees feel they are part of something small, intimate, and special - a “family” of just over 100 people where everyone knows your name - and we double in size overnight, it erodes that feeling exponentially, leading to major drops in productivity, engagement, and loyalty.
There is a better way
Investing time and attention in the cultures of the two organizations will expedite and crystallize your success. Whether you engage in a culture audit to determine how close or far off the two cultures are, or you initiate a culture tour to hear directly from employees, focusing on cultural differences and similarities will undoubtedly pay off in the long run.
Get in touch to explore more.
Get in touch to explore more.
“…I had a lot of people reach out to me after the [event]. They were excited about the future...and I think it helped retain a lot of employees who may have been thinking of taking off.”
— CHARLES W., CLIENT
