Services / Mergers & Acquisitions

Surviving Culture Wars.

“When mergers fail, it’s often because no one focused on who they are – that is, their culture, which is critical to successfully bringing two groups of people together.” — Punit Renjen

Why Mergers Fail.

More than 60% of mergers and acquisitions fail to live up to initial expectations, and one of the biggest reasons is the failure to integrate two distinct cultures to create one like-minded organization.

What is a culture? The expression of the values, beliefs, behaviors and habits of the people (particularly the leaders) in an organization. If a company were a body, its culture would be the brain and heart of it. Because it drives so much of what happens within an organization, it is the single biggest factor that differentiates one company from another.

How Successful Is Your Merger?

If you run an organization that has recently acquired or merged with another:

  • To what extent have the old cultures evolved into a new identity?
  • How successful were you in honoring the best of both cultures (regardless of who was buying whom)?
  • How did you tackle any values differences that sometimes generated conflicting behaviors among employees?

If you are preparing to buy another business: 
 

  • What thought have you given to the challenges of integrating the two cultures?
  • Where are the opportunities and the complementary values of the new organization?
  • Where are the potential flash points of the new organization?
  • What are you doing to manage these?

We use the Barrett Values Centre Cultural Transformation Tools® (CTT) to provide a rapid and cost-effective way to answer these questions and help you increase the success of your merger or acquisition.

So Where Do We Begin?

Measure the cultures. Whether your merger took place some time ago or is about to move forward, it is still possible to increase the success of that merger. This begins with conducting a Cultural Values Assessment (CVA).  The resulting Merger/Comparison report allows you to look at results from each legacy organization side-by-side to get a picture of how satisfied employees are and what each group sees as important for creating an organization that will operate at its highest potential.

Time Is Money.

The process is proven, your time investment is small. Assessments are done online, via a website, and usually take just 10-15 minutes to complete. Surveys are available in multiple languages, values to be used can be defined and adjusted, and reports can be broken out by leadership, management and staff. Because we always consider a client’s unique perspective, these customizable assessments become the foundation for a successful merger or acquisition.

When Values Align, Cultures Thrive.

Paying attention to cultures pre-merger is ideal so that you can go into it with eyes wide open. However, an assessment soon after an acquisition also proves beneficial and helps establish connection and trust.

Working with the leadership and integration teams, Rinnovo will:

  • Measure the managers’ and employees’ perceptions of the values of the current and desired cultures of each organization.
  • Determine where the two cultures are already compatible.
  • Show where the groups differ and how these differences should be addressed.
  • Reveal how one culture can immediately transfer value and insight to the other and vice versa.
  • Provide a richer, more detailed road map for integration.
  • Raise awareness among management and employees about the different cultures and help them see the next steps for growth.

Insights gleaned from these results enable organizations to be better equipped to plan the integration and marry the financial benefits with significant people benefits.  Join that elite group of organizations that actually exceed initial merger expectations.