Integrating workplace cultures after an acquisition

Hi, I'm Debbie Carew, a member of YPO Alberta. Today I'm going to talk about one of the best ways to grow your business, which is through mergers and acquisitions. But are you aware that 80% of acquisitions fail to meet their targets? Today we're going to focus on the seven lessons on how you can successfully integrate organizations to maximize your return. When a firm decides to undergo a merger or acquisition, it may seem black and white and very transactional. You project the financials, preach the synergies, develop a build down schedule and share your vision for the future. However, in reality, roughly 80% of all mergers and acquisitions fail, according to Harvard Business Review. This isn't due to poor financial projections or legal implications. It usually comes down to one single factor, and that's the people. In most situations, organizations do a great job of figuring out the obvious risks of mergers, but do a poor job calculating the hidden risks associated with change and change management. A merger or acquisition is very much like a marriage. You can't force two people together and assume it's going to work. Cultural integration is not easy, but a disciplined approach will pave the way. Here are my seven points to integrate culture successfully. 1. Take your time. Understanding another culture takes time. Make sure you fully understand the company and its client base, its management systems and people before even committing to the deal. Always review their past employee survey results and if possible, read the comments. It can give you a real glimpse into their culture. 2. Never assume the acquired company staff is happy about joining your team. No matter what they tell you, they are nervous and people don't like change. Instead of assuming you're doing them a favor, be curious and start a dialogue to encourage openness. For example, ask them what they're looking forward to with a new organization and what concerns them. 3. Create a sense of urgency. One of the most important ways to get people to buy into change is to create a sense of urgency that we need to do it now and and also to dictate a clear vision for the future that they can rally behind and get on board. 4. Mesh the cultures don't force a culture upon another organization. One of the best ways to bring it together is to highlight the uniqueness of one another and be able to bring them together in a way that they can highlight their differences but that they can also find common synergies as well. Number five don't let the larger company culture force itself on the smaller company. Regardless of the size difference between the two. Organizations handle cultural integration like a partnership, keeping the best or at very least a little of both sides of the companies. 6. Be ready to lose talent and be ready to accept it. Not everyone's going to like the change or even agree with it, so be prepared for people to leave. Losing talent is never easy, but being adaptable is key. Always have a Plan B for management positions. Identify the individuals you want to stay and make sure they feel part of the future vision, and do whatever it takes to keep those key people. Number seven Continuously check in with staff. Listen to the team. Don't assume that once the integration is complete, your work is done. It's vital to make sure your staff is adjusting well to the change and that you address any questions or concerns they have immediately. If you follow those seven steps, you're sure to have a successful integration and be able to beat those 80% odds.