Innovation Outcomes M & A Integration Tips and Strategies
Although statistics on merger success have changed somewhat over the years, they still remain dismal. Because we've been involved with the human side of M & A for many years, we know that the cost of acquisitions in hard dollars typically doesn't represent the full price tag, when turnover and lost productivity are factored in.
Our experience has taught us a great deal and has allowed us to formulate strategies and tips for effectively managing M & A, from the pre-merger research stage to post-merger integration or assimilation. Please see more about the different stages of M & A below. __________________________________________________________________________________________
Invest as much time as possible to learn about the target organization to assess whether it will meet specific goals.
clients with respect to how incompatible cultures can jeopardize the
target's potential to increase market share, allow for entry into new
markets, attract and retain certain talent, allow for vertical
integration, and produce new distribution channels.
Pre-merger Planning and Strategy Formulation
Reconcile differences in ways that leverage the strength of the merged firm.
Explore strengths and potential synergies to decide what can be shared and what needs to remain different.
Identify and reinforce core values. Explore differences by leveraging as well as being alert for potential obstacles.
Formulate new vision, mission, goals, objectives, and strategies and a plan for communication.
to announce the integration or assimilation effort and utilize a
consultant who can effectively manage change, including sensitive issues
such as ego, pride and turf.
Assemble task forces or cross-functional integration teams and formulate a detailed and tactical operating plan.
Communicate frequently, efficiently, and effectively to secure employee buy-in and maximize retention.
Use a variety of communication tools including presentations, videos, e-mail, employee portals, etc.
Honor the technological, economic and historical legacies of both organizations.
Build relationships and trust by keeping employees up to date on outstanding issues and processes
Ensure that employees know there is still advancement potential.
Make efforts to "re-recruit" key contributors.
Communicate that organizational change temporarily decreases productivity, even when skillfully managed.
Post-merger Integration or Assimilation
Launch the integration stage quickly, putting working systems in place as soon as possible.
diligence teams as integration teams that can function as change agents
and advocates. Visibly support team efforts and equip team members with
formal training in change management and group dynamics.
culture audits, employee surveys, focus groups, change agents and
advocates to track the success of the integration/assimilation.