Download - Merger & Acquisition
M&ACulture Issues
2 + 2 = 5 effect
To Reinvent our Business
Model
To Boost Our Company's
current Performance2 Reasons
M&A
Study By Hewett Association
162 Organization
At least 1 M&A
M&A failure 70% - 90%
69% says Culture as Main Challenge during
M&A
Team resourcing
Ignorance Poor governance
Nasty surprises resulting from poor due diligence
Lost baby with bathwater
No common vision
Poor programme management
Lack of courage Weak leadership
Poor communication
No common visionLack of courage
Ignorance
Poor governance
Weak leadership
Team resourcing
Lost baby with bathwaterPoor programme management
Impact of Culture
Mergers & Acquisitions
on
Pitfalls
List-making
Preoccupation
Organizational Proliferation
Infrequent and irrelevant communication
Triangulation
The relatives
The guiding light
7
Preoccupation
Canada individual preoccupation "How is this all going to impact me?"
France and Italy turn to unions Go on strike
strikeFrench railroad
subway workers December 1995
Demise of the Juppé government
Example
Acceleration
Strategy
List-making
Example
Mexicans
require
structure and definition
role and responsibilities
than do Canadians
ConcentrationStrategy
Organizational Proliferation
Canadian managers expect input from these teams and committees
French members of these committees and teams
expect direction from their managers.
Example
StrategyAccelerate,
Concentrate &Adapt
Infrequent and irrelevant communication
The working languages of the two organizations involved are not the same.
Case of a Norwegian - American joint venture
PricewaterhouseCoopers survey of 124 mergers
StrategyAccelerate,
Concentrate &Adapt
Triangulation
Strategy
Clear lines of authority
Clear understandingWeb of conflict
Filipino employee Two
Managers
Quickly overwhelmed
Perform two separate jobs
Concentrate andAdapt
The relatives
The relative forces of time and space
adapt
long-term
North America 3 years
Japan 30 years
Different time zones, regions, countries and organizational
units.
adapt
Strategy
The guiding light
Example- Charisma and a positive personal image are important
attributes of leadership in the U.S., more so than in Canada.
Primary roles Leader Vision and inspire others
adapt
Strategy
Overcoming The Culture Impact
Pre Combination
Combination(integrating the
companies)
Solidification and Assessment of the
new entry
-Swiss-Long Term Oriented
-Canadian-Short Term Oriented
Tata Motors-Jaguar Land Rover $2.3 billion
Queries
Source: Bloomberg & ET