Most companies enter into a merger or acquisition with high expectations for capturing so-called ‘synergies’ and/or economies of scale. However, when they attempt to execute, only a few make it.
Research by Michael Porter of the Harvard Business School (shown on the left) found that, even after waiting 5 years, as many as 86% of M&As failed to achieve their defined up-front ‘expectations of success’. The primary reason was cultural clashes that undermined the acquirer’s ability to execute on the desired strategy for the new organization.
You can’t achieve synergies in your marketing, IT, communications or other activities if success is being undermined by conflicting values, attitudes and behaviors. Customers notice these problems early on and leave, talent starts to flee, and your financial value erodes.
The Corporate Missions Inc. distinguishes itself as a strategy execution firm by excelling at helping companies enhance their post-M&A success. We use many of the same strategy execution methodologies we employ to help companies achieve the Execution EdgeTM, but we concentrate much more on culture, looking at how things were done at each of the companies previously, and how even small nuances in behavior are undermining success.
Talk to us before or after your M&A. We will help you become one of the success stories!