Most mergers fail. And the largest contributor to this failure comes from cultures that clash. But the best do it successfully. Here are the rules they follow to beat the odds:
1. Don't Act Like a Conqueror
The acquired company has tangible and intangible assets that made it an attractive acquisition. The employees of the acquired company will appreciate that the new leadership cares enough to learn what made them successful.
2. Find Out What Makes Them Tick
An acquiring firm needs to invest the time and effort to learn about the new team's history. Managers need to spend enough time working with new team members to understand their motivations and dynamics.
3. Take It One Function at a Time
"Corporate culture" is not monolithic. Every company has many sub-cultures with different styles and motivations. The acquired company's administrative function may be very compatible with their peers in the new company while the acquired company's operations team may be totally out of synch. New leadership needs to assess which of the acquired company's cultures are compatible with the new direction the combined organization is going and what to do to bring the cultures into a new, smoothly working model.
4. Integrate, Don't Alienate
Don't just throw the acquiring firm's managers at the newly constituted team without a formal integration process. All levels of leadership need to know what each team will bring to the new entity, how they will operate going forward and the challenges that need addressing. Think about a plan beforehand and adjust it as you go.
5. Get Acquainted
Make sure the managers who will work together receive adequate time to get to know each other so they can assess each other's skills, form working bonds and negotiate responsibilities. This cannot be done via Blackberries. Do not try to save travel expenses. Nothing beats face time.
6. Understand What Drives Talent
The acquiring company should not assume that what motivates its key talent will also motivate the stars of the acquired company. Once leadership determines who needs to be kept onboard, find out what motivates them. The financial incentives of one company may be a poor trade-off for lifestyle benefits of another.
7. Don't Assume You Will Be Heard
The acquiring company needs to learn how the newcomers are used to receiving information. Do they have regular e-mail updates? Daily morning meetings? Monthly town hall sessions?
8. Bridge the Gap
Before putting two groups of strangers in a room together and saying "get to work," take a hard look at where the biggest corporate culture gaps are. Arm the groups with solid information on the gaps.
9. Lend an Ear
Establish regular formats for listening, and give each team member's thoughts and suggestions a fair hearing. Experience shows that people care more that their voice is heard and acknowledged than that their position is accepted.
10. Anticipate Some Clash
Accept that there will be culture clashes. In every integration, no matter how smooth, there are always teams, functions or even divisions that see the world in very different ways. Acknowledge these reactions and respond with sincerity. Empower local teams to work through the issues and take ownership of the challenges-and payoffs-of learning to work together.
David Gebler is president of Skout Group LLC, where he works with senior leadership teams to measure what drives behavior in organizations.