The People Side of M&A
Here is an interesting article on the people side of mergers and acquisitions. The author, Leo Flanagan, notes that most mergers and acquisitions do not produce the intended economic results. He further notes the logical cause of these failures and goes on to suggest ways that organizations can begin at the top to ensure success:
"a number of studies and experts have identified what is probably the largest factor: failure to specifically understand and address the impact on and of people in an M&A situation"
My view: Those of us in this business know that in order for any major strategic event to be successful, employees and leaders within the organization must be truly engaged. In order for that to happen, there must be open communication and commitment to a defined goal or end-game. In addition, cultural integration, while not initially recognized as a key influence on the bottom line, can have a major influence on firm performance. In fact, many suggest that Carly Fiorina's departure from Hewlett Packard is largely the result of her inability to integrate successfully into the well-defined culture at HP. As two organizations come together, it is vitally important to make sure that everyone knows the ground rules, and that the new organization take the time and effort to address the people issues.
