Merger or Acquisition
The Challenge
The growth goals of many organizations involve acquiring or merging with another organization. There are many benefits including optimizing processes and systems to reduce operating expenses and improve performance, expand customer base and markets, and demonstrate greater strength in the industry.
However, industry reports suggest that most mergers or acquisitions fail from the standpoint of losing efficiencies, and lowering performance. In many cases, they don’t achieve the cost cutting goal, resulting in even higher operating costs. Often, the focus on optimizing processes and systems becomes a distraction to serving customers, effectively coordinating leadership roles, and merging the two cultures involved in a way that keeps people focused on operational priorities. Power struggles for control become more important than the effective integration of both organizations. This results in conflicting priorities, poor operational coordination, breakdowns in operational performance, confused roles and accountability as organizations merge.
IMPAQ?s Solution
IMPAQ supports the leadership team in strategizing and guiding the merger or acquisition by ensuring leadership is establishing an organizational structure where there is no breakdown in individual, team or cross-functional accountability. It is critical for leadership to think in new ways by developing a new Picture of Success for the merged organization and creating a clear strategy for the culture in terms of execution. Finally, IMPAQ helps build a new and improved culture of effective execution that draws upon the best practices of each organization to create a stronger, larger entity.
The Result
- Greater alignment of leadership between the two organizations
- A clear process for integrating both organizations, which minimizes the fight for control
- Improved morale, commitment and accountability from the people in both organizations
- Greater cooperation, support and engagement of people at all levels for making the changes associated with integrating the two organizations
- Improved operational effectiveness and efficiency throughout the change effort
