The penny really drops when teams can see a shared vision of what the new company looks like. It shows that the leaders mean business, and creates a sense of excitement about the ambition of the new organisation.
Who said it: Martin Clarkson, Chairman and Founder of The Storytellers
In Context: With M&A markets heating up to record breaking levels, this quote from Clarkson is timely. The main focus during due diligence for M&A is often on financials and governance, but considering cultural difference is critical factor too, and often overlooked, says a report recently published by MergerMarket and The Storytellers, which is where we found this quote.
Post-merger, the most important factor leading to success is “integrating systems and processes”, and second most important is “integrating people and cultures”, says the report, which was based on a survey of 100 senior executives with experience of the M&A process using a mixture of quantitative and qualitative questions. The survey results reveal that making employees feel “emotionally attached” and “proud” of the new organization created are key factors for an easy integration and “high level of synergies”. Clarkson, who is a high-profile UK-based corporate communications and management consultant, knows how emotional factors contribute to M&A success stories. He’s built a thriving consulting company based on helping business leaders to do just that and his company website has published case studies that illustrate the idea. His thesis is that if business leaders get the emotional part right, they can drive a workforce that is determined to achieve a successful outcome. And just how long does it take to get employee “buy in”? It takes about 48 days, according to 93% of respondents. See the graphic (left) for more insight from Clarkson and his colleagues.
Where we found it: The Storytellers Report : The Missing Chapter