In Good Company: Cultural Issues Can Play Havoc with Merger Plans

  PM Network  

It starts with a few whispers. Then it gradually builds into a low rumble. There’s nothing official yet, but the mere hint of a merger or acquisition in the works is enough to set off a frenzy of speculation about what the new company will look like. Visions of doom and gloom cloud the air. And then, when it’s actually a done deal, chaos erupts—bringing projects to a screeching halt.

There are, of course, some basic ways to avoid that unpleasant scenario. Establishing early and constant communication with team members and setting realistic expectations before, during and after a merger can go a long way toward securing goodwill and project progress.

Yet rarely does senior management make such an effort, says John C. Bruckman, Ph.D., managing director at Change Management Group, a consultancy in Ashland, Oregon, USA. “The lawyers and executives make the deal, then they think their job is done,” he says.

Executives tend to dramatically underestimate the time a merger takes to complete. “They expect it to be wrapped up in three to six months, when it actually takes an average of 18 to 24 months,” he says.

During that time, the financial teams and executives who drive the merger or acquisition are typically so focused on the end-goal that the day-to-day business flounders. And that has a ripple effect through the business…

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