Mergers & Acquisitions

Hello M&A Change Managers! I wanted to share this article from Mckinsey with you that I recently came across. It highlights the importance of supporting employees during mergers and acquisitions. It discusses how mergers create vast organizational anxiety about the future and how these changes challenge the core of an organization's identity, purpose, and day-to-day work. 

Supporting employees during mergers and acquisitions | McKinsey

It's pretty insightful!

Appreciate you sharing this Marie! Knowing that "cultural differences and changed operating models account, on average, for almost 50 percent of the failure of mergers to meet expectations" is not surprising. McKinsey does a great job providing easily digestible insight on how to help mitigate that from happening. Saving this for future use!  

Hello M&A Change Managers! I wanted to share this article from Mckinsey with you that I recently came across. It highlights the importance of supporting employees during mergers and acquisitions. It discusses how mergers create vast organizational anxiety about the future and how these changes challenge the core of an organization's identity, purpose, and day-to-day work. 

Supporting employees during mergers and acquisitions | McKinsey

It's pretty insightful!

Thank you, Dawn! 50% is a huge percentage. Hopefully organizations and change leaders will pay closer attention to these stats and suggested approaches as they navigate through post-merger cultural change.  

Appreciate you sharing this Marie! Knowing that "cultural differences and changed operating models account, on average, for almost 50 percent of the failure of mergers to meet expectations" is not surprising. McKinsey does a great job providing easily digestible insight on how to help mitigate that from happening. Saving this for future use!  

Hello M&A Change Managers! I wanted to share this article from Mckinsey with you that I recently came across. It highlights the importance of supporting employees during mergers and acquisitions. It discusses how mergers create vast organizational anxiety about the future and how these changes challenge the core of an organization's identity, purpose, and day-to-day work. 

Supporting employees during mergers and acquisitions | McKinsey

It's pretty insightful!

I think one of the biggest challenges is the gaps that are likely in culture between two organizations we are trying to combine into one and designing a thoughtful process to consider how we merge the cultures effectively. 

Thank you, Dawn! 50% is a huge percentage. Hopefully organizations and change leaders will pay closer attention to these stats and suggested approaches as they navigate through post-merger cultural change.  

Appreciate you sharing this Marie! Knowing that "cultural differences and changed operating models account, on average, for almost 50 percent of the failure of mergers to meet expectations" is not surprising. McKinsey does a great job providing easily digestible insight on how to help mitigate that from happening. Saving this for future use!  

Hello M&A Change Managers! I wanted to share this article from Mckinsey with you that I recently came across. It highlights the importance of supporting employees during mergers and acquisitions. It discusses how mergers create vast organizational anxiety about the future and how these changes challenge the core of an organization's identity, purpose, and day-to-day work. 

Supporting employees during mergers and acquisitions | McKinsey

It's pretty insightful!

Hello M&A Change Managers! I wanted to share this article from Mckinsey with you that I recently came across. It highlights the importance of supporting employees during mergers and acquisitions. It discusses how mergers create vast organizational anxiety about the future and how these changes challenge the core of an organization's identity, purpose, and day-to-day work. 

Supporting employees during mergers and acquisitions | McKinsey

It's pretty insightful!

Marie,

This is a very good article from McKinsey.  Thanks for sharing it with our community.  The fact that 50% of mergers fail because of cultural differences and changed operating models hopefully is not a surprise.  How long has the saying, "culture eats strategy for culture" been around?  McKinsey conducted another study which found that "human and cultural issues" were the number one reason that all change initiatives fail.  Accounting for 70% of the failure rate.  Here is the link to that article as well.  https://www.mckinsey.com/featured-insights/leadership/changing-change-management

Hello M&A Change Managers! I wanted to share this article from Mckinsey with you that I recently came across. It highlights the importance of supporting employees during mergers and acquisitions. It discusses how mergers create vast organizational anxiety about the future and how these changes challenge the core of an organization's identity, purpose, and day-to-day work. 

Supporting employees during mergers and acquisitions | McKinsey

It's pretty insightful!

Hello M&A Change Managers! I wanted to share this article from Mckinsey with you that I recently came across. It highlights the importance of supporting employees during mergers and acquisitions. It discusses how mergers create vast organizational anxiety about the future and how these changes challenge the core of an organization's identity, purpose, and day-to-day work. 

Supporting employees during mergers and acquisitions | McKinsey

It's pretty insightful!

I would add one other comment to this string.  The article, while a good one, overlooks one other critical element of the change process.  The article does not mention the emotional component of change which impacts both the acquiring company as well as the acquired target.  Employees in both companies are consumed with anticipatory grief as they wonder what is next.  Will I have a new boss?  Will my work change?  Will my compensation and benefits change?  Will I even have a job when this over?  I could go on and on.  I have been on both sides of the acquisition fence and have experienced these emotions firsthand.  They are paralyzing at the operating level.  When I took over as president of an acquired company, the acquisition did not reach its full potential until I stood up in a meeting and told my new company that I understood what made them attractive to the parent company and I was not going to allow that to change.  We were going to continue to be the company that we were and we were going to comply with the home office but were not going to conform.  There was a long line of people after the meeting who wanted to talk to me.  The company went on to exceed the financial models of the acquisition and was held up as the example of how to integrate an acquired company.  All this success and we made huge changes as we introduced them to the home company's operating model.

Hello M&A Change Managers! I wanted to share this article from Mckinsey with you that I recently came across. It highlights the importance of supporting employees during mergers and acquisitions. It discusses how mergers create vast organizational anxiety about the future and how these changes challenge the core of an organization's identity, purpose, and day-to-day work. 

Supporting employees during mergers and acquisitions | McKinsey

It's pretty insightful!

I totally agree Anthony. Emotion is a huge component, and you bring up some very important points.

I would add one other comment to this string.  The article, while a good one, overlooks one other critical element of the change process.  The article does not mention the emotional component of change which impacts both the acquiring company as well as the acquired target.  Employees in both companies are consumed with anticipatory grief as they wonder what is next.  Will I have a new boss?  Will my work change?  Will my compensation and benefits change?  Will I even have a job when this over?  I could go on and on.  I have been on both sides of the acquisition fence and have experienced these emotions firsthand.  They are paralyzing at the operating level.  When I took over as president of an acquired company, the acquisition did not reach its full potential until I stood up in a meeting and told my new company that I understood what made them attractive to the parent company and I was not going to allow that to change.  We were going to continue to be the company that we were and we were going to comply with the home office but were not going to conform.  There was a long line of people after the meeting who wanted to talk to me.  The company went on to exceed the financial models of the acquisition and was held up as the example of how to integrate an acquired company.  All this success and we made huge changes as we introduced them to the home company's operating model.

Hello M&A Change Managers! I wanted to share this article from Mckinsey with you that I recently came across. It highlights the importance of supporting employees during mergers and acquisitions. It discusses how mergers create vast organizational anxiety about the future and how these changes challenge the core of an organization's identity, purpose, and day-to-day work. 

Supporting employees during mergers and acquisitions | McKinsey

It's pretty insightful!

Thank you both for sharing, both articles are excellent. I would agree emotions for all employees and the organization changes is a huge impact and needs to be transparent and clear to everyone. I like how you spoke to the people that you worked with. I think that speaks volumes to leaders and they are walking the talk and not providing lip service. Again, thank you both for sharing. 

I totally agree Anthony. Emotion is a huge component, and you bring up some very important points.

I would add one other comment to this string.  The article, while a good one, overlooks one other critical element of the change process.  The article does not mention the emotional component of change which impacts both the acquiring company as well as the acquired target.  Employees in both companies are consumed with anticipatory grief as they wonder what is next.  Will I have a new boss?  Will my work change?  Will my compensation and benefits change?  Will I even have a job when this over?  I could go on and on.  I have been on both sides of the acquisition fence and have experienced these emotions firsthand.  They are paralyzing at the operating level.  When I took over as president of an acquired company, the acquisition did not reach its full potential until I stood up in a meeting and told my new company that I understood what made them attractive to the parent company and I was not going to allow that to change.  We were going to continue to be the company that we were and we were going to comply with the home office but were not going to conform.  There was a long line of people after the meeting who wanted to talk to me.  The company went on to exceed the financial models of the acquisition and was held up as the example of how to integrate an acquired company.  All this success and we made huge changes as we introduced them to the home company's operating model.

Hello M&A Change Managers! I wanted to share this article from Mckinsey with you that I recently came across. It highlights the importance of supporting employees during mergers and acquisitions. It discusses how mergers create vast organizational anxiety about the future and how these changes challenge the core of an organization's identity, purpose, and day-to-day work. 

Supporting employees during mergers and acquisitions | McKinsey

It's pretty insightful!

Agree! Both articles provided a wealth of insight and tips on execution. I am wondering how the insights could be (or are) applied to internal M&A execution teams beyond dashboards and project plans. Does your organization or consulting practice embody an internal parallel component that focuses on the key internal disciplines necessary to execute M&A's to promote a connection to the overall vision and provide a feedback loop to both assist with discipline specific process improvements and overall understanding of M&A success?  

Thank you both for sharing, both articles are excellent. I would agree emotions for all employees and the organization changes is a huge impact and needs to be transparent and clear to everyone. I like how you spoke to the people that you worked with. I think that speaks volumes to leaders and they are walking the talk and not providing lip service. Again, thank you both for sharing. 

I totally agree Anthony. Emotion is a huge component, and you bring up some very important points.

I would add one other comment to this string.  The article, while a good one, overlooks one other critical element of the change process.  The article does not mention the emotional component of change which impacts both the acquiring company as well as the acquired target.  Employees in both companies are consumed with anticipatory grief as they wonder what is next.  Will I have a new boss?  Will my work change?  Will my compensation and benefits change?  Will I even have a job when this over?  I could go on and on.  I have been on both sides of the acquisition fence and have experienced these emotions firsthand.  They are paralyzing at the operating level.  When I took over as president of an acquired company, the acquisition did not reach its full potential until I stood up in a meeting and told my new company that I understood what made them attractive to the parent company and I was not going to allow that to change.  We were going to continue to be the company that we were and we were going to comply with the home office but were not going to conform.  There was a long line of people after the meeting who wanted to talk to me.  The company went on to exceed the financial models of the acquisition and was held up as the example of how to integrate an acquired company.  All this success and we made huge changes as we introduced them to the home company's operating model.

Hello M&A Change Managers! I wanted to share this article from Mckinsey with you that I recently came across. It highlights the importance of supporting employees during mergers and acquisitions. It discusses how mergers create vast organizational anxiety about the future and how these changes challenge the core of an organization's identity, purpose, and day-to-day work. 

Supporting employees during mergers and acquisitions | McKinsey

It's pretty insightful!