A merger or an acquisition is not just about getting the business or the financial aspect of the companies right. The more important, in fact, the most important aspect of a merger or an acquisition is the way the cultures of the merging companies blend. This is the key to a successful cooperative partnership. Half of the managers interviewed during a recent McKinsey study felt that the cultural fit of a merger is the deciding factor in enhancing the value of the merger or acquisition. A quarter of the managers interviewed at this study felt that the mergers fail to realize its value if the cultural fit is missing.
Another survey from Aon Hewitt corroborated this finding. It found that organizations taking a longer than expected time for integration, i.e. completing the M & A process, which is itself a result of failure to see the cultural fit, is the number one reason for which mergers don’t succeed. This factor is followed by lack of cultural integration.
CEO’s find the cultural fit a conundrum
The importance of cultural fit during a merger or an acquisition can be gauged from the fact that nearly half of the CFO’s reported at a Deloitte survey that they considered the post-merger cultural integration as their first priority. Nearly three fourths of executives who took part in a Mercer study too, considered the harmonizing factor between the employees of the different organizations as the most important factor for the success of the merged companies. In other words, it is more important for merging or acquiring companies to be sure about whether they can work together as a team in the future, than to be conversant with the processes, many of which after all, are automated and can be learnt sooner or later.
Although cultural fit during a merger or acquisition has such a high level of importance, it is difficult to define the term. Cultural fit consists of a number of factors, and could mean different things to different organizations. What is broadly understood is that the cultural fit is the way in which the merged organizations think and communicate together and mix with each other. It is also about how they handle conflicts and how they inculcate and hone organizational beliefs, as also how they respond to situations emotionally and cultivate mindsets and shape events for the organization.
Getting all this right is a difficult task for most employees, no matter what background they come from and what they think about business.
Get to understand culture in a merger or acquisition better
An understanding of the cultural fit aspect of a merger or an acquisition will be the topic of a highly valuable webinar that TrainHR, a leading provider of professional trainings for the human resources industry, will be organizing.
At this webinar, Claudette Rowley, an executive coach, consultant and trusted advisor who has been designing, customizing and delivering coaching and consulting programs and interactive trainings for over 15 years, will be the speaker.
In order to gain full understanding of the ways by which the cultural fit determines the success of a merger or acquisition, and to understand how to bring this cultural synergy about, please register for this webinar by visiting http://www.trainhr.com/control/w_product/~product_id=701672LIVE?wordpress-seo.
This webinar has been approved for 1 HR (General) recertification credit hours toward aPHR, PHR, PHRca, SPHR, GPHR, PHRi and SPHRi recertification through HR Certification Institute (HRCI). This session will be very useful for all those to whom a merger or acquisition is an important activity in their professions, such as C-Level Leaders, Senior Leaders, Senior Managers and Project Team Leaders.
This learning is also important when the findings of another study, which found that CEO’s gave a lot lesser attention to the cultural aspect of the merger compared to the business aspects, are taken into consideration. The CEO’s even added that they had no concrete plan for taking care of the cultural fit aspect of the merger or acquisition.
A five-step process for understanding the cultural fit of a merger or acquisition
The core of this session is in helping to understand how people in positions that require them to think linearly, which is a “left brain” matter, have to address “right brain” subjective issues such as cultural fit. The speaker will take up a five-step Cultural Integration Design process that helps the merged organizations blend to form a culture that works together well.
This five step process helps executive leaders retain and increase the value of their business during a merger or acquisition. These are that these five steps consist of: Cultural Intelligence Assessment, Cultural Profile, Cultural Architecture, Design & Prototype, and Integrate & Train.
Claudette will cover the following areas at this webinar:
o Understand the definition of culture and its role in your organization’s success or failure
o Discuss key principles to assessing, influencing and designing culture
o Review a five step process for successfully integrating culture during a merger, acquisition or any significant change.