According to Forbes, 83% of Mergers fail. Yikes!
Amongst the primary reasons stated for this high failure rate are
Teamspect provides an excellent platform to help overcome these pitfalls of mergers and acquisitions. Teamspect campaigns can be used to systematically bring people together across the business boundaries, and facilitate the building of empathy and trust, and blending of culture.
Any merger-related integration efforts bring several very concrete problems, that need to be recognized and addressed, the top being:
Lack of knowing the new people and new groups, and lack of understanding their culture leads to reduced empathy, and eventually conflicts.
Unlike regular team engagement efforts, Teamspect campaigns would be set-up to:
Trust and teamwork is severely impacted both vertically and horizontally if either group, or even both groups, feel marginalized, mistreated, or less important.
In addition to horizontal connectedness solutions above, Teamspect identifies and suggests:
After M&A, the organization will not magically converge into the same office building. The two organizations tasked with becoming a cohesive team may be across the country which brings challenges, especially with communication and trust.
The best results in building empathy, trust and teamwork are via face-to-face interactions. When the team is physically separated, these face-to-face interactions are rare. Teamspect provides the following solutions:
The newly merged organization may decide on a new CEO and board quickly, but what takes time is restructuring the rest of the organization. Deciding what departments stay, merge with others, and how the departments interact is a long process that does not settle down for some time. Guiding employees through the uncertainty is imperative to success.
These problems cannot be addressed without having the executive team, all the way up to the CEO, being involved, pro-active and visible. The best help from Teamspect comes via reminders for the executives to communicate regularly the status of the transformation, via scheduling presentations (company-wide) and in-person “Executive Talks” (small-group sessions).
Layoffs are a necessary evil during M&A, causing heavy cultural damage and trust problems. People will see their close coworkers being let go for “no reason” which leads to trust issues, and doubts whether to stay with the company. Communicating with employees and being honest offers hope of mitigating the consequences of layoffs and departures.
Same as the New Structure above, it is extremely critical for executives and managers to lead the team through the times of layoffs and departures. Teamspect provides support to managers via:
It is too easy to lose track of all the people involved in the merger, from the executives at the top, to all the hard workers down the chain. Teamspect campaigns can be used to accomplish a number of objectives, including: