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Research shows that two out
of every three mergers are
compromised through their
failure to consider corporate
“culture issues”—i.e. issues
that influence a company’s
decisions and interactions.
Successfully taking on these
issues will require companies
to reconcile differences, to
determine corporate values via
a developmental process, and to
establish a new identity for the
newly-born organization.
To help ensure that the process
of a merger/acquisition will
be most successful, an
employer should:
Communicate as openly as
possible with employees,
providing them with a vision
and mission for the newly
forming organization.
Inform employees as to what
they can expect once the
merger/acquisition takes
place. This nips inaccurate
rumors in the bud and
heads off hearsay that can
hurt organization morale.
Preview job expectations
for the future combined
company. This must be
done with staff from both
groups involved, so all can
more realistically cope
with any new/modified
job demands.
Handle any layoffs or
downsizing as soon as
possible to alleviate anxiety,
reduce rumors, and return
to “business as usual” as
quickly as possible.
Motivate employees during
this difficult time by setting
aside time to discuss
concerns or issues while
recognizing the employees
openly for their role in
managing change.
The Credit Professional
Conduct what might be
referred to as a “merger/
acquisition stress audit” to
identify collective concerns
of the employees.
Ascertain the managerial
talent required to assure
future success of the newly
formed company prior to the
merger/acquisition process.
This usually results in top
manager turnover no matter
how well the process goes.
From my experiences, the
success of a merger/acquisition
depends on the new company’s
ability to help employees
envision new cultural
perspectives. This is best done
via meaningful collaboration
between management and
employees to define the new
culture together. Employee
groups encouraged to discover
what common beliefs currently
exist and what assumptions
they share are more likely to
see possibilities for the future.
In short, successful mergers/
acquisitions are generally the
result of reconciled business
dilemmas. That means that
everyone throughout the
28
newly-formed organization
must engage in construct