The current international financial crisis is on everyone’s mind. You cannot escape it. It is forcing companies to re-examine their business models. As a result, some companies are considering merging. Merging is seen as one of the options open to companies for surviving the current prolonged crisis. Even the big boys are thinking about it e.g. the possible merger of General Motors and Chrysler in the USA.
This time, I have decided not to talk about the pros & cons of Mergers at a strategic level, but about a small “detail” that can in some cases, make-or-brake the merger. When companies decide to merge, they spent considerable effort (and money) merging/commonising every possible system you can think of: financial, manufacturing, sales, warehousing, distribution, etc. Special teams are set up to carry out this complicated task, and quite rightly so. One system, is most commonly neglected, the People System.
Imagine the scenario. Two competing companies merge (many mergers are between competing companies). The staff of the two companies who until yesterday were competing in the market, suddenly find themselves behind the same desk. Now they have a common goal to aim for and have to work together rather than compete. A major challenge, in anybody’s book. Furthermore, staff in each of the companies probably had different behaviours, behaviours that they have now brought with them to the new company. The result? A workforce that is not homogeneous in behaviour. And so what, you say!! Well, if people behave differently, it can lead to disagreements, differences in opinion on problem solving, differences in prioritising tasks and sometimes personal clashes, to name but a few. All these cause inefficiencies, a lowering of work output and offcourse, a dampening of staff moral.
Enter the issue of “Culture”. The root cause of all the above is Culture, or rather the lack of an “aligned” Culture. Just like you have to align financial, sales and other systems, you need to align Culture as well. People need a guide to help them adopt and implement common & correct behaviours. This can be achieved by taking people through a structured and motivational development process that centres around the organisation’s Behavioural Values. Furthermore, play your cards right, and you can align Behavioural Values to Brand Values and then, you have a winning combination. Your workforce will reflect your Brand to your clients thus re-enforcing your image and customer loyalty. Worth it? I think Yes, especially in these trying times.
