Unfortunately the "soft side" of mergers and acquisitions is often the hardest thing for companies to get right.
Many senior executives miss a great opportunity to energize and grow the wealth of a newly formed organization during the consolidation of the predecessor organizations.
SSI can rapidly assess the cultural differences of key individuals in the pre- or post-merger integration stage of the M&A activity and strengthen the new combined culture.
Typically M&A activity begins with a financial motive such as increased market share, increased shareholder value or cost savings through consolidation. Rarely is consideration given to overall employee morale, culture differences between the organizations and the "bench" depth of middle management.
Although many employees may be optimistic about the prospects of the new company, most understand that mergers and acquisitions lead to a certain amount of redundancy and that changes need to be made. To that end, you may have as many, if not more, employees who are anxious about what will occur.
This is the exact and critical point at which a commitment by senior management to understand the overall available human capital pays off if they seize the opportunity to create healthy functioning teams.
If no commitment is apparent, and if there is confusion about roles and one's future in an organization, there will be, among other things, turnover and reduced morale – all at a time when instability can be significant to the newly formed entity.