Three top tips for successful cultural integration

Cultural integration isn’t always a business’s number one priority when undertaking a merger and acquisition (M&A). However, too much focus on time and cost alone, instead of on the needs of employees, could have considerable implications for the long-term success of consolidation activity.

So, what are the three main pitfalls that organisations need to avoid when it comes to M&A activity?

1. Invest in your employees

If employees don’t feel supported by a business, there is a risk of productivity levels falling and commercial objectives being missed. As such, open communication with employees is vital; adopting a consistent approach can help in achieving this.

By keeping employees engaged with the change process, they are more likely to remain happy. In turn this improves retention and minimises additional marketing and recruitment costs.

2. Start with a health check

In order to streamline the cultural integration process, businesses should begin by identifying their ideal target culture. From here, the company should undertake a thorough business health check, which examines key areas such as employee motivation and commitment to the existing brand. Once this information has been collected, a rigorous impact assessment should be conducted to determine how cultural change will affect the business across four key areas:

  • People
  • Processes
  • Systems
  • Infrastructure

3. Plan ahead

The truth is that successful culture change does not happen overnight. Failing to allow sufficient time for changes to become embedded could ultimately make the difference between business success and failure. Seeking quality third-party advice at an early stage of the project can also help businesses to avoid any pitfalls that could negatively impact the project further down the line.

By considering cultural integration during M&As, as well as time and cost, businesses can maximise commercial advantages from consolidation activity and ensure the workforce stays happy long after the project is complete.

For more information on how to successfully carry out M&A activity, please contact Peter Marsden or Debora Marras.

Published: May 29, 2020

By Deb Marras

Project Manager

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