A merger of two companies is always a fluid process. The logo and brand name may be swapped instantly but the human element cannot. Asking one workforce to adopt a different mentality and approach to work has the potential to breed resentment.
The key to success lies in taking the best of both worlds and combining them to form a new concept that works across the board. For example, a company with a “tighter” culture might benefit from increased discretion where a company with a “looser” culture one might gain from a more structured approach. When employees can identify elements of their original culture within the combined one, they are more likely to adopt it.
Clarify the Non-Negotiables
A merger contract should clearly state the elements of their culture a company will not abandon for the union. This is crucial because it allows employees to retain a sense of continuity and not feel like they are being absorbed into an unthinking, gargantuan profit machine.
An ideal example of this is Pixar’s merger with Disney. Pixar employees were given the freedom to carry on with their annual paper airplane contest.
Takeaway Tip: Ensure that essential elements are supported by clear documentation. This eliminates the possibility of confusion arising down the track.
Involve Employees
A merger is an unsettling time for all employees. No amount of reassurance will convince everyone that their jobs are safe, or that the changes will be minimal.
It is incredibly important that business leaders open channels of communication at all levels with employees in the period prior to the merger. The benefits of the merger must be made amply evident, and you are the best person to do that. Listening to their concerns will give you the most pertinent information for your negotiations with your future partners.
Takeaway Tip: Listen to all employees. By acknowledging and addressing their concerns, you set a great precedent for the collaborations to come.
Business Always Involves Trial and Error
Any experienced business leader recognizes that no amount of strategizing and planning can eliminate every possible problem. As employees absorb the unified culture, the positive elements of the change will be evident to them and to you. Let the dust settle and monitor the areas where the transition has not manifested as well as was assumed.
However, don’t be too eager to amend what has been established. Before you make another change, identify whether it is actually necessary. Sometimes, the issue simply may be a matter of prolonged internal resistance.
Takeaway Tip: Monitor all areas of transition and recognize where change is necessary and where is it not. As always, open communication is the key.
