Make culture a part of due diligence
If every organization is different and a culture clash between two entities merging into one is inevitable, then doing this should be a given. Evaluating culture is just as important as looking through the books, IP, assets, business operations, etc. as part of due diligence. For each organization, determine where and to what degree these differences exist through DOWE’s Culture Study before the decision to merge or acquire. Are there cultural strengths to leverage on both sides? Does the buyer actually want to acquire the culture for sale? Are there red flags that could signal a deal breaker? This helps the two sides to go into their new world with eyes wide open.
Forge a new shared vision and culture
During the highest peaks of M&A activity, the focus isn’t typically on the aftermath—it’s all about getting the deal done from a legal and regulatory standpoint. This myopic view leaves organizations ill prepared for the fall-out, despite the fact that all employees care about is what happens to them afterwards. Instead of having two cultures forge a battle royale or see one culture cannibalize the other, partner with your employees using DOWE. You’ll be able to articulate a new vision and culture as well as design new employment experiences that reflect them. Create a new identity that employees from both sides are proud to join. Instead of a mass exodus of talent, you might just garner enough attention to attract new talent at a time when business performance is so critical.
Deploy Change Management early and continually
Use of full-on change management is shockingly low during business as usual, despite the need. After all, change is constant in business. Something as huge as a merger or acquisition makes disciplined, well strategized and executed change management an imperative. With the culture studies in hand, DOWE helps organizations determine the distance and the path from the current to the future state. This brings people along for the journey as engaged collaborators throughout the integration. Isn’t that preferred over force-feeding the new state with all the pain that comes with disengagement and attrition of your best talent?
If you’ve gone through all the trouble, then you’d want to make sure your changes stick for as long as you need them. The positive aspects of the new vision, culture, and experiences post-merger need to be the new norm. The way to do that is to continue managing change well past integration. The DOWE process creates the opportunity to ensure that enough is done to set the conditions, support them systematically, and measure progress.
So before you go into your next merger or acquisition, think about how you want history to remember it. Then consider how these steps might help you.