Companies are joining forces in large numbers today, mergers, acquisitions and various types of joint ventures being efficient ways to obtain market access and to establish more powerful presence regionally or globally.
While the principles behind mergers and acquisitions are geared toward success, many of these mergers and acquisitions fail to deliver the expected results, one of the reasons behind the failure being the incompatibility of the cultures of the individual companies participating in the transaction. Strategic planning M&A consultants confirm that the solution to the issue is complex and time-consuming – the values that make up the corporate cultures of each of the participant companies needs to be mapped, then the values of all the participant companies need to be integrated through continuous communication. The process can only be successful if leadership styles, decision-making styles, the definition of the roles and all the other components of corporate culture are harmonized through planned, strategic action. Such integration also needs to take place in an efficient manner – otherwise employee turnover can rise very quickly, with key employees deciding to leave because of what they perceive as chaos and that will, in turn, lead to decreased efficiency and less work done at all levels in the new corporate hierarchy.