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Merger & Acquisition
The document discusses the significance of cultural issues in mergers and acquisitions (M&A), highlighting that 70% to 90% of M&A failures are attributed to cultural challenges. It outlines various pitfalls, including poor governance, communication, and leadership, which can negatively impact organizational integration. Additionally, it emphasizes the need for a common vision and effective strategies to navigate cultural differences for successful M&A outcomes.
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Merger & Acquisition
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- 3. 2 + 2= 5 effect
- 4. To Boost OurCompany's current Performance M&A 2 Reasons To Reinvent our Business Model
- 5. Study By HewettAssociation 162 Organization At least 1 M&A M&A failure 70% - 90% 69% says Culture as Main Challenge during M&A
- 6. Lack of courage No common vision Ignorance Team resourcing Poor communication Lost baby with bathwater Poor governance Poor programme management Weak leadership Ignorance Poor governance No common vision Lack of courage Weak leadership Nasty surprises resulting from poor due diligence Team resourcing Poor programme management Lost baby with bathwater
- 7. Impact of Culture on Mergers & Acquisitions
- 8. 7 Pitfalls Preoccupation List-making Organizational Proliferation Infrequent and irrelevant communication Triangulation The relatives The guiding light
- 9. Preoccupation Canada individual preoccupation "How is this all going to impact me?" France and Italy turn to unions Go on strike Example French railroad Demise of strike December 1995 the Juppé government subway workers Strategy Acceleration
- 10. List-making Example require Mexicans structure and definition than do Canadians role and responsibilities Strategy Concentration
- 11. Organizational Proliferation Canadian managers expect input from these teams and committees Example French members of these committees and teams expect direction from their managers. Accelerate, Strategy Concentrate & Adapt
- 12. Infrequent and irrelevantcommunication The working languages of the two organizations involved are not the same. Case of a Norwegian - American joint venture Accelerate, Strategy Concentrate & Adapt PricewaterhouseCoopers survey of 124 mergers
- 13. Triangulation Clear lines of authority Web of conflict Clear understanding Two Quickly overwhelmed Filipino employee Managers Perform two separate jobs Concentrate and Strategy Adapt
- 14. The relatives The relative forces of time and space Japan 30 years long-term North America 3 years Different time zones, regions, countries and organizational units. Strategy adapt adapt
- 15. The guiding light Primary roles Leader Vision and inspire others Example- Charisma and a positive personal image are important attributes of leadership in the U.S., more so than in Canada. Strategy adapt
- 16. Overcoming The CultureImpact Pre Combination Combination -Canadian- -Swiss- Long Term (integrating the Short Term Oriented companies) Oriented Solidification and Assessment of the new entry
- 17. Tata Motors-Jaguar Land Rover $2.3 billion
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