A difference may exist in a mergers culture when partners integrate to form a bigger corporation has led to the collapse of otherwise well intended ideas is not in doubt. Perhaps, the concern should now shift to how best to manage integrations so that past failures can be remedied and any further pitfalls avoided.
The term culture is used to refer to the managerial style that each partner in the integrated corporation has been used to. The tendency is to maintain the tradition that has been established in total disregard of the fact that a now bigger entity whose style is different has started. In most cases, opinion will boil down to the artifacts that are to be used in the corporate and the norms to follow. The value system and beliefs too will not be easy to harmonize as each of the previously independent companies may insist on carrying on with what they know has worked best for them in the past.
The clash can occur due to nationalities or organizational practices. It may result from the manner in which the personnel are used to functioning. The results of these are always disastrous to the integrated unit. It results in stress and the collapse of business. Regrets may follow and even irreconcilable differences arise. Each partner wants to maintain his attitude to customers and how he handles products.
I f a battle for supremacy of ideas ensues; it is signal that it time to manage the diverse shade of opinions that may lead to conflict and ultimate failure. First, recognize that mutual interest is what brought the various small units together. Avoid blame games and immediately get down to the basics of how the new entity can function as visualized.
A number of ways can be used to manage the culture so that eventually there is rapport and a functional company. Brainstorming as often as possible is one of them. The lines of communication should ever be open so that decisions are not made without the involvement of all the parties concerned.
Workshops at which ideas are exchanged can be organized at regular intervals. The level of communication should extend to newsletters and telephone so that no party feels he is in the dark on the happenings and decision making. Surveys among the staff in the form of questionnaires can be carried out from time to time to establish whether any progress towards perfect integration is being made. Not to be forgotten is the need for joint evaluation of achievements by the corporate and the formation of integration teams whose prime responsibility is to ensure the new out fit achieves the goals for which it was established.
Besides, it can be decided what role the past practices can play in the integration. The test is how to build links that will ensure that the merger is built on mutual understanding of all the parties involved. The most important of all is for patience to be exercised as acquaintance to the newly established outfit takes shape.
However, if proper analysis of all these issues is done before and after the integration fewer problems will be encountered. Working with a profession who understands the issues of mergers culture is highly recommended.
Dr. Doreen McGunagle is fiercely committed to guiding corporate and non-profit leaders who are serious about making corporate culture shifts to boost profits, performance, and growth as world-class service organizations. Since 2006, organizations have come to rely upon Dr. McGunagle year after year for her 360 degree assessments, strategic insights and results-focused action plans. She is that skilled, objective, and strategic outside consultant and co-collaborator who can be trusted and counted on to get to the root causes of performance breakdowns to guide organizations to achieve performance breakthroughs that show up readily in the balance sheet and beyond. Global Strategic Management Solutions, Inc. http://www.globalstrategicmgmt.com/
By Doreen Mcgunagle
The term culture is used to refer to the managerial style that each partner in the integrated corporation has been used to. The tendency is to maintain the tradition that has been established in total disregard of the fact that a now bigger entity whose style is different has started. In most cases, opinion will boil down to the artifacts that are to be used in the corporate and the norms to follow. The value system and beliefs too will not be easy to harmonize as each of the previously independent companies may insist on carrying on with what they know has worked best for them in the past.
The clash can occur due to nationalities or organizational practices. It may result from the manner in which the personnel are used to functioning. The results of these are always disastrous to the integrated unit. It results in stress and the collapse of business. Regrets may follow and even irreconcilable differences arise. Each partner wants to maintain his attitude to customers and how he handles products.
I f a battle for supremacy of ideas ensues; it is signal that it time to manage the diverse shade of opinions that may lead to conflict and ultimate failure. First, recognize that mutual interest is what brought the various small units together. Avoid blame games and immediately get down to the basics of how the new entity can function as visualized.
A number of ways can be used to manage the culture so that eventually there is rapport and a functional company. Brainstorming as often as possible is one of them. The lines of communication should ever be open so that decisions are not made without the involvement of all the parties concerned.
Workshops at which ideas are exchanged can be organized at regular intervals. The level of communication should extend to newsletters and telephone so that no party feels he is in the dark on the happenings and decision making. Surveys among the staff in the form of questionnaires can be carried out from time to time to establish whether any progress towards perfect integration is being made. Not to be forgotten is the need for joint evaluation of achievements by the corporate and the formation of integration teams whose prime responsibility is to ensure the new out fit achieves the goals for which it was established.
Besides, it can be decided what role the past practices can play in the integration. The test is how to build links that will ensure that the merger is built on mutual understanding of all the parties involved. The most important of all is for patience to be exercised as acquaintance to the newly established outfit takes shape.
However, if proper analysis of all these issues is done before and after the integration fewer problems will be encountered. Working with a profession who understands the issues of mergers culture is highly recommended.
Dr. Doreen McGunagle is fiercely committed to guiding corporate and non-profit leaders who are serious about making corporate culture shifts to boost profits, performance, and growth as world-class service organizations. Since 2006, organizations have come to rely upon Dr. McGunagle year after year for her 360 degree assessments, strategic insights and results-focused action plans. She is that skilled, objective, and strategic outside consultant and co-collaborator who can be trusted and counted on to get to the root causes of performance breakdowns to guide organizations to achieve performance breakthroughs that show up readily in the balance sheet and beyond. Global Strategic Management Solutions, Inc. http://www.globalstrategicmgmt.com/
By Doreen Mcgunagle
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