M&A CULTURAL INTEGRATION
? Oh my God, How do I bring the employees of other company on the same value system?
? How to ensure that my Business plan is sacrosanct to the acquired company’s employees as well?
? Why did I acquire this company, the culture of this company is pathetic?
? Next time I swear I would do cultural diligence as well besides Financial & technological diligence
Cultural integration is a very challenging task between two completely different entities. According to a Harvard University report – “Most [Mergers] fail to add shareholder value – indeed post merger, two thirds of the newly formed companies perform well below the industry average”
Based on the data available
Statistics show that about 80% of the acquisitions failed.
Of these failures 60 to 80 % of the business combinations undergo a slow and painful demise because of ignoring Cultural Integration.
Merger is like a marriage of two different corporate cultures, mindsets, values and sets of employees.
Culture factor can prove to be a decisive point to the success or failure
Invariably the acquiring entity often tries to impose its own systems, values and strategies on the acquired entity.
Mr. Grovar helps the organisations overcome this very difficult hurdle by following some/all of the following steps
•Evaluation of culture of the main organization through various methods involving individual employees as well as groups – white collared and blue collared – union representatives / works committees
•Formulating a vital communication strategy – Preparing a communication package, Methodology to communicate to all employees, Assisting client in conducting these meetings successfully
•Assessing the C&B policies and identifying the gaps and formulating plan to bridge the same if needed.
•Evaluation of culture of the acquired entity by following some/all of the above
•Assessing the PMS (Performance Management System) prevalent in both the companies and assisting the client to make amendments, if any.
•To help the client take an informed decision on bridging the gaps between HR
policies
•Reason/logic of M&A
•Counselling of some difficult customers
M&A CULTURAL INTEGRATION
? Oh my God, How do I bring the employees of other company on the same value system?
? How to ensure that my Business plan is sacrosanct to the acquired company’s employees as well?
? Why did I acquire this company, the culture of this company is pathetic?
? Next time I swear I would do cultural diligence as well besides Financial & technological diligence
Cultural integration is a very challenging task between two completely different entities. According to a Harvard University report – “Most [Mergers] fail to add shareholder value – indeed post merger, two thirds of the newly formed companies perform well below the industry average”
Based on the data available
Statistics show that about 80% of the acquisitions failed.
Of these failures 60 to 80 % of the business combinations undergo a slow and painful demise because of ignoring Cultural Integration.
Merger is like a marriage of two different corporate cultures, mindsets, values and sets of employees.
Culture factor can prove to be a decisive point to the success or failure
Invariably the acquiring entity often tries to impose its own systems, values and strategies on the acquired entity.
Mr. Grovar helps the organisations overcome this very difficult hurdle by following some/all of the following steps
•Evaluation of culture of the main organization through various methods involving individual employees as well as groups – white collared and blue collared – union representatives / works committees
•Formulating a vital communication strategy – Preparing a communication package, Methodology to communicate to all employees, Assisting client in conducting these meetings successfully
•Assessing the C&B policies and identifying the gaps and formulating plan to bridge the same if needed.
•Evaluation of culture of the acquired entity by following some/all of the above
•Assessing the PMS (Performance Management System) prevalent in both the companies and assisting the client to make amendments, if any.
•To help the client take an informed decision on bridging the gaps between HR
policies
•Reason/logic of M&A
•Counselling of some difficult customers
