A common reason behind the failure of several mergers is the lack of cultural compatibility between the parties. A good example for this could be the acquisition of Whole Foods by Amazon. The good news is that when diagnosed early, some symptoms may be rectified to lead towards improved cultural compatibility. First of all, post a merger or acquisition, both the companies must be flexible to the ideaof negotiating their work cultures. They must not be fixated to their existing one. A prenuptial agreement can be set in motion, as it worked very well between Disney and Pixar. The latter’s talent management system gave more flexibility but was also a bit loose, which the former being the larger entity, had to formalize a bit more. Trial and error needs to be embraced, as there will be newer norms setting in post the merger. The team members in both the organizations need to be informed of the changes. Their views also need to be taken in at a macro level.

Source:https://hbr.org/2018/10/one-reason-mergers-fail-the-two-cultures-arent-compatible

Uploaded Date:06 February 2019