by Judith Forrest
By now, you have either read of or experienced the pitfalls inherent to merger and acquisition activities. Frequently, lack of attention to the softer issues surrounding M&A causes deals to fail in meeting strategic goals. Increasingly, we consult with clients who have become alert to the risks of integrating different organizational cultures. You might expect cultural differences when merging US and European companies. However, often significant differences in management styles or in the general "way things are done" exist between companies that are only a few miles apart. Our client, Symmetricom, recently acquired its closest competitor and called on Larcen to uncover cultural incompatibilities and resolve them early.
Within days of the announcing the deal, we initiated an Organization Culture Audit. By interviewing an equal number of individuals representing all functions and levels of both companies, we were able to identify potential "hot spots." The interviews also communicated to employees that management would not take cultural integration for granted.
We presented the audit summary and recommendations to the executive team and facilitated the development of an action and communication plan to address areas of concern rapidly. The process resulted in an effective organizational culture that now serves to motivate, inspire and beat the M&A odds.
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