There are challenges while trying to integrate two corporate cultures during a merger. DRIVING MERGERS – How to lead a company through merger integrations focuses on those challenges. The article discusses the key leadership actions for successful merger integrations.

1. __ Leslie W. Braksick, Ph.D.
DRIVING
MERGERS
How to lead a company through merger integrations
people really identifying when critical results targets at their
If
YOU consider the
challenges of integrating they use these labels? They are levels. Identify key behaviors
any two corporate using "code" for identifying that need to occur for the
cultures, it is no surprise the behaviors those leaders targeted results to be met.
that so many mergers fail. predictably and reliably
The probability that two or encourage - the way they Invest time to plan
more cultures have identical "still" get work done. And so and deliver positive
histories or ways of doing it is easy for these subcultures consequences for achieving
things is virtually zero. So, to become embedded, and the those results and decide
from the time of the merger development of a new culture how those who engage in
announcement forward, the to be delayed - while profits less desirable behaviors
importance of leading well and suffer and full integration is will be coached. Don't leave
managing behavior begins. put off. Leadership is key in success to chance. Ensure that
The paper avalanche of preventing this from occurring. every interaction the leaders
a merger discloses legal have with the organization
and business due diligence Creating a new culture are leveraged as opportunities
about both companies. Leaders can create a new to show what the company
Unfortunately, culture and help encourage stands for and encourage the
the documents new behaviors by aligning desired behaviors needed for
and the due expectations (like a new success.
diligence process vision statement) with desired
don't disclose the behaviors and by ensuring Steward business
depth of cultural that leadership feedback and plans with oversight of
differences. coaching actively encourages performance versus plan.
In other those behaviors. Taking the Use this opportunity to track
words, merger time to do this work is where progress, reinforce success,
documents most mergers fall short. remove barriers and take
rarely reveal In the frenzy to get FTC corrective action. Show
the patterns of approval and names plugged through words and actions
behavior that into organizational charts, it that the performance is the
have been shaped is tempting to view "culture" best lagging indicator of how
over decades by as a distraction and a waste of things are working inside the
the systems and time. Dedicated leaders, doing organization.
people within everything imaginable to hit
each organization. pro forma targets, often forget Ensure that rewards and
With a merger, the that it is their leadership that recognition systems are
players abruptly most powerfully influences aligned with the behaviors
change, leaders how their organizations needed for business
and leadership perform. success and for behaviors
structures are Key leadership actions for critical to the desired
altered, and successful merger integrations new culture. Maintained or
expectations and behaviors include: improved business results are
that get rewarded also shift. especially key in a post-merger
The result: The old conditions Invest time in clearly situation. Leaders need to
that encouraged important articulating to everyone the actively coach and encourage
behaviors no longer exist, and vision, strategy and means desired behaviors, and the
resulting behaviors become of success for the future. consequence systems need to
much less aligned with what Make the expectations clear reward them.
made the individual companies and consistent. Encourage There is no substitute for
so successful prior to the new teams at all levels to work leadership's role during
merger. together and to review the merger integration. «
Under less successful
conditions, subcultures can
lESLIE W. BRAKSICK, Ph.D. (Ibraksick@clg.com) is co-founder of CLG Inc. (www.clg.com) and
exist where the pockets
author of 'Preparing CEOs for Success: What I Wish I Knew and Unlock Behavior, Unleash Profits.'
become identified as the old
Braksick consults with top executives and their boards on issues of executive leadership succession
"XYZCo. sales guys" or the old
and effectiveness and strategy execution, including merger integration,
"PFG Co. sales guys." What are
6 Smart Business Pittsburgh I March 2011