The M&A (Mergers and Acquisitions) field can be a goldmine of
opportunity. It can also become a quagmire which can cause the
eventual demise of the newly merged or acquired company.
What makes the difference between success and disaster? Simply, an
understanding of how employees at all levels and from all sides
perceive the changes. In a merger or acquisition there will be a clash
between two cultures - the dominant and submissive. People's base
insecurities and fears rise to the fore during such situations.
The stresses are caused by uncertainty and fears that
individuals, groupings and departments will be marginalised by the
coming together of the corporate entities. There will also be well
founded fears that layoffs, downsizing and rightsizing will be the
result of a merger or acquisition. In the beginning stages of the
merger, one may expect heightened tensions and politicking as
employees attempt to evaluate the expediency of belonging to a
particular grouping or 'tribe'. The organisation may expect to become
'inward focused' as a result of this process with more attention being
placed on events within the organisation than normal. This is to be
expected as the individuals will feel livelihoods and their very
existence are threatened. As individuals perceive that they are being
threatened at a very base level, one can also expect their reactions
to be visceral.
The stage is now set for a clash of cultures - the
dominant and submissive. Certain behaviours associated with the
different cultures now start to become evident - a dominant swagger
versus gestures of timid appeasement. Unless firm proactive action is
taken, the distrust and frustration experienced here, especially by
members of the submissive culture, is likely to take hold an poison
the organisational culture for many years to come.
Action
- The first step is for top management of the merged
culture to get to know one another and be seen to be getting to
know one another. And when doing this, it is important that this
be utterly sincere. People quickly cotton on to any insincerity.
- Define and promote a consistent framework in which decisions
will be made and how these will be communicated to employees.
- Acknowledge peoples' fears and emotions. A way ahead needs to be
mapped as quickly as possible. If there are layoffs and downsizing
in the pipelines, get this into the open and perform the surgery
as quickly as possible.
- Decide on what the new culture will be like and communicate
this. Openly communicate the shared values.
- Live the reality of the newly merged entity.
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