Indeed, culture is cited as one of the primary reasons why M&A transactions fail to realise their full potential.
Whether it’s the more dominant culture that needs to be rolled out across the organisation, a best of both (each) approach or a complete cultural overhaul that’s designed specifically for the NewCo, what’s clear is that without a concerted effort to unite people behind one purpose, a new vision and a defined set of values and behaviours, performance and productivity will suffer, your people will be less engaged, confused with the change and there is a risk of damaging a positive employee experience.
Aligning cultures stretches well beyond just harmonisation of people / HR policies, practices and the employee experience. It’s about re-designing all work practices in alignment with the new values, which means applying the culture lens to policies (non HR) , processes, systems, governance and decision making, and ultimately to any organisational restructures that need to be completed.
But the culture integration should not just be another workstream in the overall integration, you should be leveraging the overall integration to bring about the desired cultured change and realise the full value from the M&A transaction.
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