In the next installment of our series on why M&A deals fail, we address cultural clashes.
Cultural differences can lead to conflicts and inefficiencies during M&A integrations, affecting morale, turnover, and productivity. Here are key tips to effectively address these challenges:
Invest in Culture Due Diligence
Include activities to identify potential cultural clashes.
Focus on people: conflict management, accountability, communication, collaboration, DEI, and organizational purpose.
Focus on processes: decision-making, technology, excellence standards, stakeholder focus, and innovation.
Understand cultural differences in global organizations: Asian (reactive), Latin/Middle East/African (multi-active), and Western (linear active).
Conduct Post-Day 1 Culture Analysis
Utilize tools to measure cultural facets of both companies.
Align integration programs where cultures match and adjust where clashes are significant.
Engage leaders and employees in ongoing communication and change management. Share the data to demonstrate ‘the why’.
Define and build the desired culture intentionally through the integration period and beyond.
Remember, a strong culture takes years to build but can be quickly dismantled in a manner of months. Prioritize retaining people and customers for successful integration.
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