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Post Merger Integration: Company Culture
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Post merger integration: company culture
When making an acquisition, a company can typically expect to gain access to markets, brands, technology, products and people. It is therefore surprising that the 'people' element is often given so little consideration compared to the work that goes into other aspects of a deal. A recent study by KPMG revealed that dealing with different organisational cultures is perceived as the second-greatest challenge when implementing a merger or takeover, yet while over half of the business leaders surveyed felt that they had been well prepared for other aspects of the deal, just one in five thought that they had given the cultural element enough consideration. If key members of staff depart in the wake of a merger or takeover, they take with them all their knowledge, expertise, influence and connections that were central to the value of the transaction, and so it is hardly surprising that so many mergers fail to realise the value expected.
Furthermore, too many business leaders view 'culture' as a blanket problem rather than identifying precisely what it means. John Kelly, head of KPMG's integration Advisory Practice, points out that ³what is perceived as a cultural clash is really prompted by someone not knowing how to be successful in the new organisation".
So what exactly is meant by the 'culture' of an organisation?....
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