Mergers & Acquisitions – 83% Fail
3 Key PEOPLE Strategies to Consider
by Connie Ekelund of Synergy Complete Management Consulting
Generally speaking, Mergers & Acquisitions occur because of the desire for globalization, the arrival of new technological developments or a fast-changing economic landscape that makes the outlook uncertain.
Growth by acquisition is a strategy some organizations use to gain control and dominate a market. Other times the management team feels they have no choice and must acquire a rival before being acquired. The motivation may be that they need to be bigger to survive, or they may view a merger or acquisition as the best way to acquire the knowledge and expertise needed to compete.
No matter the reason for the Merger or Acquisition, one thing has been proven over time – 83% FAIL. This is the unfortunate reality, as painful as it may be.
It’s impossible to pin the reason for failure on a single factor, but it is clear that IF YOUR PEOPLE ARE NOT ENGAGED, YOU’RE DOOMED. Any way you break down the failure, it comes back to, your people are your single biggest asset… or liability.
83% of Mergers & Acquisitions Fail
#1 – CULTURE
“Culture Eats Strategy for Breakfast” ~ Peter Drucker
Culture is not just a term to describe your organizations working atmosphere. It’s an authentic way of being. It’s about the values of the individual, the organization now, and the organization of the future and who they want to become. It’s about genuinely caring for your people, your clients, your community, your world, and making a difference wherever possible.
Engagement and Communication and are key to Integration. Invest in getting this piece right. Take the time to get to know each other through professionally lead discovery workshops, training, mentoring, coaching and retreats…
66% of Employees are NOT Engaged
#2 – LEADERSHIP
“If the Leaders Don’t Change, the Culture Won’t Change” ~ Richard Barrett
Gone are the days of top down Leadership. If this statement feels uncomfortable… good, then possibly you’re open to the changes that need to occur to transform your organization.
If the Leadership doesn’t change, nothing changes. Don’t worry, this doesn’t mean cleaning house of your existing management team. It means changing the mindset of your Leaders to one of collaboration and transformational cooperation.
For this to happen you must know your key team leaders natural behaviours and how to play to their strengths, so that you consistently get their best performance. Additionally, a job fit analysis is critical to making sure you have the right people in the right seats. (Too many times we see great employees, that make poor leaders. The Peter Principle)
Leaders aren’t born Leaders. It requires skills and assessments training, leadership development and ongoing coaching and mentoring to become a “Natural Born Leader”. Once you have ensured you have the right team driving your organization, and they have the right training and ongoing support, then the real work can begin… Creating High Performing Teams…
Businesses Don’t Fail – Leaders Do
#3 – INNOVATION
“Innovation Distinguishes between a Leader and a Follower” ~ Steve Jobs
The world is changing at an exponential rate of speed. If you don’t innovate you’ll be left behind for a certain death. Leveraging your people is the best chance you have for success. You will find that your people have an abundance of ideas on how to make your business better, faster, consistent, and more efficient.
The Bottom Line: Increased Revenue!
Trust building is a critical first step. A deep level of respect and integrity are required for this to happen. As well, there must be a guarantee of no ill-consequences for speaking up… or no one will. This is done through facilitation, led by an outside professional where your people will engage in deep communication and they will be encouraged to say what’s really going on in the business, the industry, and the community. With the discovery of this invaluable information, you can develop new strategies in your processes, create new products/services that generate new revenue streams, and better manage your organization, to name a few.
This is a free resource you have built into your organization that you can not afford to waste.
40% of Fortune 500 Companies will be Gone within 10 Years,
Due to Lack of Innovation
*Final Note on People:
Ready to start a conversation about achieving breakthrough results?