Exploring Mergers and Acquisitions….
The adage goes that close to 70% of change initiatives fail.
Let’s take mergers and acquisitions – research tells us that between 50 – 80% of merger transactions are considered to be unsuccessful and 50 – 70% of managers voluntarily leave acquired businesses in the first three years post acquisition. A large part of this may be due to the weight of emphasis given to financial and strategic goals throughout, instead of the emotional dimensions of the M&A process particularly post-integration.
One in three of us will be subject to a merger or acquisition during our working lives but despite this frequency, and the attraction of financial, strategic and operational returns that should create shareholder value, M&As frequently fail to deliver the value to which they strive.
Post-merger or acquisition employee turnover can rise to up to 75% in the first three years post-acquisition and the impact on the organisation of key talent and knowledge leaving can have numerous negative organisational outcomes including cultural ambiguity, loss of belief in products or services, loss of trust, lack of connection and a reduction in commitment and productivity.
So there’s a lot at stake – how might we address this?
At Team Up to Perform, we believe that by putting people at the very heart of any change programme, it’s chances of success will increase. By placing more weight on how change impacts us emotionally and addressing these concerns and reactions early and then on an ongoing basis, change might even become a positive experience for both individual, team and organisation.
If you’d like to hear more about the people-centred approach to change or would like some help working through a particular change related challenge that’s affecting your people, we’d love to chat.