Entering into a merger can be challenging for both companies. Whatever your reasoning for the merger, one thing is for sure—change is coming. According to Harvard Business Review, between 70 and 90% of mergers and acquisitions fail. Culture clash may be to blame for this extremely high number.
There are a few things you can do to combat this issue.
Employee engagement doesn’t have to suffer when you merge two different cultures. The leaders of both companies hold the power to protect employees and their culture. Leaders should take a step back from the chaos of the merger and analyze the advantages of both cultures in order to marry them in a way that creates a beneficial culture for both sides.
Creating a successful company culture requires an investment from everyone on the team. Creating a healthy company culture is essential to retaining employees and keeping them engaged in their work. Here’s how to get started.
Your culture and your purpose are defined by your core values. Merging two different core values can be challenging. There are a few options leaders should consider as they move forward. These options include keeping one organization’s core values and sharing them with the other team, finding the best elements of both sets of principles and working to bridge them, or creating a new set of core values that speak to the new direction of the company.
As you work to merge two different cultures together, it’s important to engage in team-building activities and ongoing training for all levels of the organization.
Another aspect of the development of your team is ensuring your team members are aligned in their roles. Role alignment is essential to the success of your new merged business. When employees are aligned in roles that match their strengths they will be more engaged and excited about work.
Leadership should constantly communicate with their team to ensure their needs are being met. This can be done through informal check-ins, or through formal employee engagement surveys. Another area to consider is implementing monthly performance reviews to focus on an employee’s individual contributions to the overall company goals.
One of the top reasons mergers and acquisitions fail is a lack of communication. When communication is lacking between managers and employees, employees are left asking questions: Why is the company merging? How will I be affected? How will I be supported throughout this merger?
Lack of communication with your employees may leave them confused and unmotivated to work hard for the company. Keep employees updated on the context of the merger, the timeline of what’s next, and other frequently asked questions related to the merger.
Analyzing employee data before and after the merger can help you better understand how your organization has been impacted by the merger. In doing so, you can identify areas of your culture that may need work.
Employees will likely feel on edge during this major transition. They will likely be faced with fears of losing their jobs, being asked to re-apply for their job, and drastic company culture changes. Losing employees during this process will affect business as usual. In order to retain the top employees, you need to keep them engaged.
Core values, company culture, communication, and role alignment are all key aspects of keeping your employees engaged in their work. At Culture Works, we believe in helping our clients achieve the best culture possible. We help companies merge together to operationalize culture and create success. Contact us today to see how we can help!