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Suggest You - A Successful Organizational Marriage: Cultural Integration is the Secret to a Successful M&A
Company culture, everyone is talking about it, managers are fostering and developing it, hiring managers and recruitment companies/consultants are assessing it in applicants and customers are using it to discriminate when choosing which company to buy from.What is company culture?In simple terms company culture is the personality and values of the company. For example one company (Company B) may view its company culture as being dynamics, results oriented and cutting edge. Another company (Company C) may view its company culture as being professional, stable and quality focussed. Both of these companies could be in the same industry and offer the same type of services but company culture is one way that they can differentiate both internally and externally.Impact on hiring decisionWhen I conduct interview coaching I always stress the importance of the company culture in anticipating the employer’s hiring decisions. For example in the above description of two possible types of company cultures Company B would most likely being looking for very different personalities in candidates than Company C.Know the company cultureWhen going for interviews or working in an organisation it is very important to understand the company culture. During the interview you need to demonstrate that you would fit the company culture, knowing that employers will discriminate based on your ability to fit in their desired company culture. Imagine if you are in a
Executives who worked on a high-profile computer-technology merger participated in cultural due diligence activities. They made the results from their culture surveys available as the selection process for executives of the combined firm began, and the survey results became a component of the selection process. They also introduced “fast-start” workshops to welcome the thousands of new employees to the acquiring company, and articulated the approach to working together.
Unfortunately, because M&A practitioners often fail to link integration with pre-combination activities such as due diligence, they neglect questions of organizational fit in the early stages of acquisition analysis.
When the management
For those who sell services online, beware of the SCAM CLIENT. The biggest downside to working online is the fact that you have NO GUARANTEE that the other party is going to pay for services rendered. Even if you DO have a Service Agreement, it’s difficult to ensure that the information they’ve provided you with is authentic.Unfortunately, without the proper address, client name, and phone number, it’s near impossible to collect. And working with people outside of the USA is even worse because the same laws as we are here in the states do not govern them.BUT don’t let that little fact scare you away from working online! For every SCAM CLIENT, there are about twenty good clients. Maybe one out of twenty is one too many; I would agree. All it takes is one bad apple on a website like www.Elance.com or www.Guru.com and your reputation could go down the toilet.To ensure you’ll be paid on services rendered, make certain you DO have a Service Agreement. Outline every aspect of the agreement carefully. Use easy to understand terms and include a Payment Schedule. Join an ‘advocate service’ like Square Trade. Although Square Trade doesn’t collect the money from a client that defaults on payment, they will assist you in finding ways to collect for a price.If you’re working through a third party, like Elance or Guru, use their investigation team to pursue the client. Make sure you have a legal clause in your Service Agreement that states the other par
Mergers and acquisitions (M&As) are a significant activity for many organizations. Yet most mergers are not successful, primarily because the “merger of two organizations is actually a merger of individuals and groups.” Buono and Bowditch, authors of The Human Side of Mergers and Acquisitions: Managing Collisions Between People, Cultures, and Organizations.
A merger means that two previously separate organizations are combined into a third new entity. An acquisition involves the purchase of one organization by the new parent firm. M&A activity is characterized in the academic literature as an “organizational marriage,” complete with courtship. Cultural integration is often linked to a metaphor of a family where a parent who has departed is replaced by a step-parent. These relationship and familial metaphors illustrate the significant impact M&A activity can have on organizational life and its members.
Unfortunately, few M&As make any effort to integrate different cultures and workforces, even though M&A activities bring about significant change involving employees, organizational entities, systems, shareholders, customers, and many other stakeholders.
Companies initiate M&As for numerous business objectives, ranging from achieving market entry to gaining proprietary technology. Companies that want to expand strive to acquire businesses that enhance their product portfolio and secure additional employees with specialized skills. But too many enter into M&A activity without recognizing the impact on the organization and the overall impact on the human element within the two merging companies. M&A activities that are improperly managed can result in lost revenue, customer dissatisfaction, and employee attrition.
Honor is their Due
The traditional M&A approach has included financial and legal evaluations of the acquisition target with little attention paid to the people and culture. Successful M&A strategies acknowledge and honor the importance of organizational culture as a critical element in the long-term integration success.
Cultural compatibility can have significant impact on the ultimate success of M&A activity. A number of credible cultural assessment tools, such as culture surveys and facilitated focus groups, are available and should be utilized. As Dr. Edgar Schein points out, the challenge of assessing an organization’s culture “is more a matter of surfacing assumptions, which will be recognizable once they have been uncovered.” Identifying cultural compatibility on such core values as corporate ethics and quality are important considerations in the assessment of the M&A. The impact of not assessing the degree of cultural similarity might have significant consequences for the combined firm, as cultural tensions and clashes between merging organizations are a common cause of combination related difficulties (Buono and Bowditch).
Cultural Integration is one aspect of the integration process that is often overlooked. It’s necessary to initiate cultural assessment during due diligence This cultural due diligence assessment should be made before the deal is finalized, to avoid culture clashes that diminish the potential of the deal.
Placing Cultural Due Diligence on the M&A Agenda
Conducting culture due diligence allows the acquiring company to assess cultural compatibility with the target firm. Cultural compatibility and all of its ramifications need to be understood completely to ensure a successful M&A. The literature on M&A activity used familial metaphors to describe mergers and acquisitions. This is powerful language that further emphasized the significance of organizational members’ experience as a result of an M&A. One internal M&A expert encouraged companies to be capable of articulating the key facets of cultural compatibility to the acquiring company. Identifying the “must haves” of cultural compatibility is like assessing marital compatibility; some compatibility issues are negotiable, while others could be considered “knockouts.”
Executives who worked on a high-profile computer-technology merger participated in cultural due diligence activities. They made the results from their culture surveys available as the selection process for executives of the combined firm began, and the survey results became a component of the selection process. They also introduced “fast-start” workshops to welcome the thousands of new employees to the acquiring company, and articulated the approach to working together.
Unfortunately, because M&A practitioners often fail to link integration with pre-combination activities such as due diligence, they neglect questions of organizational fit in the early stages of acquisition analysis.
When the management
Are you planning to start a minor vending machine business but you don’t have enough money? Of course, if you will start a vending machine business, you need to purchase a vending machine. But how are you going to get one if your budget isn’t much? Is it possible for you to start the business?If you only have limited capital but you want to start a business, you can purchase a used vending machine. When you are going to purchase a used vending machine make sure to follow these easy steps.Make sure that the price of used vending machine you are buying is lower than the price of a new vending machine. Be careful in buying used vending machine because some dealers may give you the original price for a used machine. Check the different prices on the market and choose a used vending machine that costs less than the original.You should also check whether the coin receptacle and validator are updated. Most of the present coins today are different from the coins before in Europe. So, make sure that the vending machine is currently updated to the coins present today.You should check the vending machine for how easy is it to get the product. Costumers are using the vending machine for convenience. Easy to use machine are more appealing to costumers, so choose the easy-to-use machine when purchasing a used vending machine. The easier your vending machine is to use the more costumers you will be attracting.You can always find used vending machines in clas
Companies initiate M&As for numerous business objectives, ranging from achieving market entry to gaining proprietary technology. Companies that want to expand strive to acquire businesses that enhance their product portfolio and secure additional employees with specialized skills. But too many enter into M&A activity without recognizing the impact on the organization and the overall impact on the human element within the two merging companies. M&A activities that are improperly managed can result in lost revenue, customer dissatisfaction, and employee attrition.
Honor is their Due
The traditional M&A approach has included financial and legal evaluations of the acquisition target with little attention paid to the people and culture. Successful M&A strategies acknowledge and honor the importance of organizational culture as a critical element in the long-term integration success.
Cultural compatibility can have significant impact on the ultimate success of M&A activity. A number of credible cultural assessment tools, such as culture surveys and facilitated focus groups, are available and should be utilized. As Dr. Edgar Schein points out, the challenge of assessing an organization’s culture “is more a matter of surfacing assumptions, which will be recognizable once they have been uncovered.” Identifying cultural compatibility on such core values as corporate ethics and quality are important considerations in the assessment of the M&A. The impact of not assessing the degree of cultural similarity might have significant consequences for the combined firm, as cultural tensions and clashes between merging organizations are a common cause of combination related difficulties (Buono and Bowditch).
Cultural Integration is one aspect of the integration process that is often overlooked. It’s necessary to initiate cultural assessment during due diligence This cultural due diligence assessment should be made before the deal is finalized, to avoid culture clashes that diminish the potential of the deal.
Placing Cultural Due Diligence on the M&A Agenda
Conducting culture due diligence allows the acquiring company to assess cultural compatibility with the target firm. Cultural compatibility and all of its ramifications need to be understood completely to ensure a successful M&A. The literature on M&A activity used familial metaphors to describe mergers and acquisitions. This is powerful language that further emphasized the significance of organizational members’ experience as a result of an M&A. One internal M&A expert encouraged companies to be capable of articulating the key facets of cultural compatibility to the acquiring company. Identifying the “must haves” of cultural compatibility is like assessing marital compatibility; some compatibility issues are negotiable, while others could be considered “knockouts.”
Executives who worked on a high-profile computer-technology merger participated in cultural due diligence activities. They made the results from their culture surveys available as the selection process for executives of the combined firm began, and the survey results became a component of the selection process. They also introduced “fast-start” workshops to welcome the thousands of new employees to the acquiring company, and articulated the approach to working together.
Unfortunately, because M&A practitioners often fail to link integration with pre-combination activities such as due diligence, they neglect questions of organizational fit in the early stages of acquisition analysis.
When the management
The field of marketing can be a broad one. From marketing coordinators to brand managers, the many facets of business make this career division a dynamic one. College graduates with marketing degrees, related experience, a high level of creativity, and strong communication skills will have their pick of the litter when it comes to corresponding marketing careers. Employers typically seek those who have marketing degrees, as well as computer skills in order to conduct advertising, promotions, and sales activities on a daily basis.If a marketing career is your calling, continue on this path by earning your marketing degree. The marketing education you receive will take you to your first entry-level opportunity post graduation. Don't worry -- you're making the right decision with employment in advertising, marketing, promotions, and public relations increasing faster than the average for all occupations through 2014, according to the Bureau of Labor Statistics. Because of global competition of products and services, marketing and related occupations will always be thriving; marketing degrees will propel you forward.A Day in the Life of a Marketing Coordinator Marketing coordinators, without question, need to have marketing degrees or one in a related field. Once an aspiring coordinator receives the proper marketing education, he or she can get a job assisting all aspects of marketing planning, promotion, public relations, even marketing research to suppor
Cultural compatibility can have significant impact on the ultimate success of M&A activity. A number of credible cultural assessment tools, such as culture surveys and facilitated focus groups, are available and should be utilized. As Dr. Edgar Schein points out, the challenge of assessing an organization’s culture “is more a matter of surfacing assumptions, which will be recognizable once they have been uncovered.” Identifying cultural compatibility on such core values as corporate ethics and quality are important considerations in the assessment of the M&A. The impact of not assessing the degree of cultural similarity might have significant consequences for the combined firm, as cultural tensions and clashes between merging organizations are a common cause of combination related difficulties (Buono and Bowditch).
Cultural Integration is one aspect of the integration process that is often overlooked. It’s necessary to initiate cultural assessment during due diligence This cultural due diligence assessment should be made before the deal is finalized, to avoid culture clashes that diminish the potential of the deal.
Placing Cultural Due Diligence on the M&A Agenda
Conducting culture due diligence allows the acquiring company to assess cultural compatibility with the target firm. Cultural compatibility and all of its ramifications need to be understood completely to ensure a successful M&A. The literature on M&A activity used familial metaphors to describe mergers and acquisitions. This is powerful language that further emphasized the significance of organizational members’ experience as a result of an M&A. One internal M&A expert encouraged companies to be capable of articulating the key facets of cultural compatibility to the acquiring company. Identifying the “must haves” of cultural compatibility is like assessing marital compatibility; some compatibility issues are negotiable, while others could be considered “knockouts.”
Executives who worked on a high-profile computer-technology merger participated in cultural due diligence activities. They made the results from their culture surveys available as the selection process for executives of the combined firm began, and the survey results became a component of the selection process. They also introduced “fast-start” workshops to welcome the thousands of new employees to the acquiring company, and articulated the approach to working together.
Unfortunately, because M&A practitioners often fail to link integration with pre-combination activities such as due diligence, they neglect questions of organizational fit in the early stages of acquisition analysis.
When the management
Planning a meeting, corporate event or conference can be a trying task - particularly if you expect the event to be a large one. But before you despair over thoughts of potential meeting mishaps, remember that there is help at hand.There are a number of comprehensive resources to which you can turn when planning a meeting or event - from extensive checklists to professional event planners. And whether you're a practiced corporate event planner or are about to embark on your first ever event-planning effort, it's always essential to make full use of these resources.One of your most significant event planning resources will likely be the venue at which you choose to hold your event. That's because event venues are usually equipped with a range of internal event services and facilities, such as audio-visual technology and dedicated event staff. However, you'll likely still need to outsource various other services, such as transportation and accommodation (if the event requires travel) and possibly even catering services. In the end, all the outsourcing can amount to a lot more work than you had bargained for - meaning the organization of your event might face compromise.However, certain types of venues, such as hotels, can offer a comprehensive set of event services through a single facility, meaning that your event planning package can encompass all of your meeting requirements. For instance, many hotels operate divisions that specialise in organizing f combination related difficulties (Buono and Bowditch).
Cultural Integration is one aspect of the integration process that is often overlooked. It’s necessary to initiate cultural assessment during due diligence This cultural due diligence assessment should be made before the deal is finalized, to avoid culture clashes that diminish the potential of the deal.
Placing Cultural Due Diligence on the M&A Agenda
Conducting culture due diligence allows the acquiring company to assess cultural compatibility with the target firm. Cultural compatibility and all of its ramifications need to be understood completely to ensure a successful M&A. The literature on M&A activity used familial metaphors to describe mergers and acquisitions. This is powerful language that further emphasized the significance of organizational members’ experience as a result of an M&A. One internal M&A expert encouraged companies to be capable of articulating the key facets of cultural compatibility to the acquiring company. Identifying the “must haves” of cultural compatibility is like assessing marital compatibility; some compatibility issues are negotiable, while others could be considered “knockouts.”
Executives who worked on a high-profile computer-technology merger participated in cultural due diligence activities. They made the results from their culture surveys available as the selection process for executives of the combined firm began, and the survey results became a component of the selection process. They also introduced “fast-start” workshops to welcome the thousands of new employees to the acquiring company, and articulated the approach to working together.
Unfortunately, because M&A practitioners often fail to link integration with pre-combination activities such as due diligence, they neglect questions of organizational fit in the early stages of acquisition analysis.
When the management
Are you fond of using your credit card to make purchases in your favorite store? As far as you are concerned, the store cashier or your waiter just gets your credit card and swipes it on their little machine that produces a receipt for you to sign. At the end of the day, as long as there are no discrepancies with the statement of account produced by the credit card company and what you actually spent, you be at peace and you can rest easy.There are actually a lot of steps that take place when you make a transaction in your credit card.The sales person in the store first computes the total amount of your purchase. You then present your credit card to the cashier. Your credit card is run through the point of sales POS) system and the amount is punched in the cash register. An authorization request is sent to the bank if the transaction is valid. The sale is not actually recorded at that point but at a latter time.Authority is transmitted if you have enough credit to continue with the purchase. The credit used is actually just set aside or reserved. An approval or denial code is then sent to the POS system of the retail store. The machine prints out a receipt for you to sign that would allow the store to reimburse the amount from the bank.Before closing time or first thing the next morning, the store would review all the transactions registered in the POS system and the signed receipt. If all the authorizations match out, a request would be sent to bank
Executives who worked on a high-profile computer-technology merger participated in cultural due diligence activities. They made the results from their culture surveys available as the selection process for executives of the combined firm began, and the survey results became a component of the selection process. They also introduced “fast-start” workshops to welcome the thousands of new employees to the acquiring company, and articulated the approach to working together.
Unfortunately, because M&A practitioners often fail to link integration with pre-combination activities such as due diligence, they neglect questions of organizational fit in the early stages of acquisition analysis.
When the management of a company decides to merge with or acquire another company, it checks the financial strength, market position, management strength, and other health indicators of the other company. Rarely checked, however, are the “cultural” aspects: the company’s philosophy or style, its technological origins which might provide clues to its basic assumptions, and its beliefs about its mission and future. (Schein, 1997, pp. 268-269)
The greatest barrier to successful integration is cultural incompatibility. According to Edgar Schein, “The poor performance of many mergers, acquisitions, and joint ventures can often be explained by the failure to understand the depth of cultural misunderstanding that may be present.” Research on cultural factors is the least likely to be undertaken as part of due diligence.
Integration planning, which takes cultural factors into account, should coincide with the initiation of due diligence. When these two are strongly linked, new corporate knowledge can facilitate consolidation.
Four-Step Approach to Cultural Due Diligence
Researchers have identified the following steps for conducting cultural due diligence:
1.Integrate cultural criteria early in the merger discussions.
2.Prepare due diligence teams with cultural criteria.
3.Have the due diligence teams collect data on culture.
4.Use tools to assess potential culture fit and issues.
How companies choose to deploy this model depends on their own structure and culture. Acquirers are encouraged to operate under the assumption that cultural differences exist, and they must actively work to manage these differences throughout the integration process. Companies are also encouraged to create joint projects that allow the teams to build success together. One large telecom company that actively engaged in M&A activity, tasked one of its HR professionals with strengthening the company’s acquisition process by educating executives and due diligence teams on culture.
Exploring Cultural Integration
According to academic and business thought-leader John Kotter, “The biggest chore associated with an acquisition of any size is to merge the two (or perhaps more) different cultures. If this part of the transformation is ignored or handled poorly, problems will surface for years, maybe decades.” The importance of an organization’s culture, particularly as a risk factor in M&A integration, cannot be underestimated. Researchers at Harvard Business School found that firms that managed their culture realized a nearly seven-fold increase in revenue, compared with a 166% increase for firms that did not manage culture.
Yet specific, focused efforts to integrate different cultures and workforces remain the exception rather than the norm in M&A activity. Poor cultural compatibility continues to be cited as a factor in M&A failure. Cultural signs of the so-called “merger syndrome” include a “we versus they relationship, with a natural tendency for people to exaggerate the differences rather than the similarities between the two companies.” (Marks & Mirvis, 1998)
The key to a successful Done Deal, is selecting a culturally appropriate model of integration.
An organization’s culture consists of the underlying values, beliefs, and principles that define an organization’s management system, as well as the firm’s management practices and behaviors that reinforce those principles. (Denison, 1990)
A more detailed definition of organizational culture comes from Dr. Edgar Schein, who defines it as the pattern of basic assumptions a given group has invented, discovered, or developed while learning to cope with external adaptation and internal integration challenges. The assumptions, says Schein, should “be taught to new members as the correct way to perceive, think, and feel in r
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