Cutural Integration: When Corporate Worlds Collide
While knowledge of national cultures can be so vital to the interests of both the business and social sphere, there are times when the challenges of corporate culture supersede all other influences, cultural and otherwise. The percentage of failed mergers and acquisitions, sometimes estimated as high as 70%, is itself compelling evidence of the need for more vigilant planning, strategizing and decision making where the merging of corporate organizations is concerned.
Our highly customized interactive workshops address the issues which accompany mergers and acquisitions, joint venture agreements, and, where applicable, licensing and seconding agreements.
Why do the program?
50%-70% of mergers fail altogether
As many as 2/3 of newly-merged companies fail to generate a greater market value on paper than the sum of their previous parts
“Incompatible cultures” was among the biggest obstacles to success in M&A (source: Towers Perrin for SHRM, 2001)
Major cause of integration failure
Senior executives underestimating the importance & difficulty in merging cultures
Workplace tensions that are overlooked or given insufficient weight
What looks promising on paper fails in practice…the human component (i.e. culture) trips up
Who benefits most?
Leaders & management who are heading a merger, acquisition or similar transaction
Staff of both companies affected by the M&A, JV or related integration
Anyone involved in the implementation of the above
What will leaders and managers learn?
Clarifying the values & mission for the new organization
Conducting a cultural audit to identify potential challenges
The importance of communicating
Steps to formulating an M&A communications program
Crafting strategies & processes to address the human challenges of M&A or JV integration
Internal vs. external stakeholders
Getting employee buy-in
Developing best practices & procedures
Change management
What will employees learn?
The core values & mission of the new organization
What the new organization will look like
How the 2 sides can unite to create a cohesive whole
What the employees will be gaining
Best practices for the new workplace
What will participants gain?
The internal & external procedures to effect a successful merger of cultures
Involvement in the M&A process
An understanding of the new post-merger organization
A sense of confidence and security to ensure continued productivity
How are the programs designed and delivered?
Programs for leaders & managers are a combination of hands-on workshops and follow-up coaching
Programs for employees can be designed as functional, cross-functional or cross-company workshops, ideally supported by on-going group coaching
The programs are interactive and involve exercises, simulations and corporate culture dialogues
In speaking of the 'silo curse,' in the context of today's economic failings, Gillian Tett writes in the Financial Times of the "urgent need for a large cadre of 'cultural translators,' who can explain what is happening in those silos to everyone else." As our team at Global Coaching and Consulting well knows, more effective cultural integration is urgently needed at every level.