Cultural Fusion from Mergers & Acquisitions

After the merger of two pharmaceutical giants, the postmerger environment was a breeding ground for Below The Line behavior. These were some of the many questions that were asked: “Why wasn’t this considered during due diligence?” “Who dropped the ball on this issue?” “How long has this been going on?” and “Why doesn’t my manager know about this?” Having already adopted Oz Principle Accountability Training, the two companies had already determined that only an Above The Line approach would help everyone take accountability for improved communication and culture integration. Whenever people asked difficult or negative postmerger questions, they were urged to ask another set of questions as well: “What else can I do about it?” and “Who else can I contact to obtain the information I need?” By placing accountability with the person who was asking the question, leaders and managers created an organization full of people working to solve problems rather than complaining about them. The increased “Solve It” dialogue led both companies to adopt best practices from each other, resulting in a superior combination of best practices. Instead of succumbing to perpetual complaints and paralyzing confusion, these two companies helped their people take accountability for the basics of cultural integration. The results were a huge cost savings, reduced turnover, improved sales performance, realized synergies, and increased shareholder value.

Regardless of whether the postmerger and acquisition focus is on combining cultures, adopting the cultural traits of the acquiring company, or creating a culture where two distinct subcultures operate symbiotically, leaders must take accountability for creating the culture that will bring success in both the short and long term. Unfortunately, most leaders don’t. The majority of mergers and acquisitions not only fail to deliver the intended benefits, but they also destroy shareholder value. The only solution is to create a Culture of Accountability for achieving successful integration, realized synergies, and desired results.

To learn more about our postmerger and acquisition cultural integration and transition services, we invite you to join the Accountability Community at www.partnersinleadership.com, where you can review actual client case studies.

Below The Line, Accountability Training, Above The Line, Solve It, Culture of Accountability, and Accountability Community are all registered trademarks of Partners In Leadership, Inc.