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Managing Through Mergers and Acquisitions: It's All About Trust

Managing Through Mergers and Acquisitions: It's All About Trust
From Recruiter - January 13, 2017

Managing through a merger or acquisition is one of the most complex challenges a business leader can face. Business models can change, market focuses can shift, and established organizational cultures can cease to exist. All around, the effects can be profound.

Its the people in a business that make the culture, and it is cultural differences that are at the top of the list when it comes to merger and acquisition failure, says Frank Costanzo, senior vice president at hiring assessment providerCaliper.A merger may look good on paper, but when both organizations have even slightly different cultures, it can lead to failure.

Costanzo offers the following tips on how to smooth the merging of two organizations:

When company leaders fail to understand or appreciate the impact of individual and collective differences, organizational changes can be enforced too aggressively, which rarely leads to a successful merger. If little attention is paid to the people involved, then employees will simply disengage.

If we take the time to understand what makes people and a specific culture tick and engage with them as individuals rather than just employees, then we can unlock discretionary effort and amazing things are possible, says Costanzo. If we dont, then mergers and acquisitions will fail, teams will function poorly, and opportunities for success will be missed.

During a merger or acquisition, high-performing employees from both companies can be relied upon in the transitional period. When a new entity arises from a merger or acquisition, it is essential not just to develop a business strategy, but to align talent with that strategy.



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