We’ve written about the dismal track record of acquisitions. Think about it. These are not deals done in haste. Financial due diligence is a huge business and rather sophisticated. Change management and logistic/IT/financial integration are taken into account in acquisition planning.
Why do so many M&A’s still fail? The people side.
Successful organisations develop their own culture, meaning a unique way of looking at the world and deciding what is important. Throughline has tools – including The Hofstede Model© and Sense-Making – and a wealth of experience measuring, describing and crystallising company culture(s).
After acquisition, integrating two organisations means integrating two cultures:
- If you cannot bring them towards understanding each other, then they won’t be able to work together.
- Without work to align their ways of looking at the world and taking decisions, they will end up in constant conflict.
We think cultural analysis is best undertaken in during the due diligence phase. There’s no reason why integration planning cannot incorporate cultural dimensions.
But often, culture is sidelined and it’s only in the post-merger integration (PMI) phase that leaders turn their attention to culture as the explanation for why the integration isn’t really working.
Wherever you’re at in the M&A/PMI cycle, Throughline can help you measure and understand the culture(s) at work and plan intelligent, effective interventions to address the flashpoints and areas of conflict. More on our services supporting culture change>