Step 6: Develop M&A Culture Integration Plans
You can’t keep everyone happy when it comes to creating a culture integration plan and integrating cultures after a merger. So, here’s the deal. Don’t get scattered trying to address all the cultural preference items people make noise about. And don’t tiptoe around the delicate culture issues if they’re crucial and need to be hit head-on. Focus sharply on what’s mission critical.
Ordinarily, when merging organizational cultures, only about 5 percent of the cultural issues truly qualify as mission critical. What does that mean? This small handful of traits accounts for about 95 percent of culture’s influence on operating performance. These are the “vital few” that should be the focus of your M&A integration culture plan.
In this section, we provide books and articles that explain which culture traits are mission critical and how to best merge cultures after acquisitions. Plus, we reveal our research on current practices in M&A culture integration and what acquirers need to do differently to successfully integrate cultures.