| Mergers and acquisitions are an integral part of | | | | visible and often symbolic action. The new leaders |
| business in any economic climate. In good times | | | | need to understand the importance of the culture |
| successful companies may buy their competitors to | | | | building aspects of the merger but may be low or their |
| increase their market share - or when times are tough | | | | radar screens as they become preoccupied with the |
| (i.e. NOW) companies may join together to weather | | | | financial, legal, and marketing aspects of the merger. |
| the financial storm. For organizations that merge or are | | | | The HR or OD professional can play an important role |
| acquired it can be a scary time. Change is inevitable | | | | keeping organization culture on the radar screen for |
| and human resources and organization development | | | | the leaders and reminding them of its importance. |
| professionals can help manage the transition. It is not a | | | | - Identify the employees who will be the positive |
| viable option for merging organizations to throw two | | | | influencers or negative resistors to moving towards |
| groups of employees (perhaps once rivals) into a room | | | | the new organizational culture. Use the influencers to |
| and say, "ok, play nice! Make us some money." So | | | | push for change in the organization and create |
| here are some tips for HR and OD professionals | | | | strategies to circumvent the resistors. |
| when managing mergers and acquisitions: | | | | - Finally "communicate, communicate, communicate" to |
| - Consider the cultures of both organizations - do you | | | | employees regarding the organizational values and the |
| want one of these cultures to dominate in the new | | | | behaviors expected in the new organization. A good |
| organization or would it be better to create a new | | | | way to reinforce organizational values is this through |
| culture? The culture for the new organization can be | | | | the performance management system. Employees |
| spelled out in an "Organizational Values Statement" but | | | | can be evaluated not only on achieving their goals but |
| to avoid this turning out to be merely an academic | | | | the way they achieve them - i.e. are their behaviors |
| exercise the new leadership must "walk the talk" and | | | | consistent with the way the organization wants to do |
| demonstrate the values of the new culture through | | | | business. This can be a powerful reinforces of values |
| their behaviors. This means they must demonstrate | | | | and drive the new culture to become embedded within |
| their commitment to building the new culture by taking | | | | the organizational psyche. |