Mergers and acquisitions: avoid getting derailed by a clash of cultures
Mergers have a notoriously poor track record of fulfilling the potential anticipated at their inception – even when both entities are committed to the marriage. These failures can seldom be attributed to flawed strategic intent or faulty analysis. Rather, mergers are typically undermined by seemingly invisible factors that cannot be quantified.

Often before the ink is even dry, there is a rush to define a new merged structure and begin harmonizing business practices and systems. Meanwhile, these efforts are often quietly being subverted by a clash of cultures. Cultural incompatibility has derailed more mergers than any other factor, yet it is routinely overlooked or left to “work itself out.”

  • The redkey approach
Many leaders avoid addressing culture because it seems too elusive and ambiguous. We help you demystify it.  Our consultants have a wealth of experience in analyzing corporate culture, which we define as a collection of shared beliefs and norms that subtly influence behavior, generally outside the awareness of people living within the culture.  By conducting a comprehensive cultural assessment of the firms involved in the merger, we are able to make explicit that which has previously been unspoken – taking care to respect the strengths from both predecessor cultures.

We then guide you, the leadership, through a process to define, articulate, and embed the values and beliefs that will govern your new entity going forward.  This new culture will be as vital to your success as your new strategic direction; both require a comprehensive change and alignment plan.  Refer to our section on Strategy Execution for more on how we can support you in aligning your new organization for success. The alignment process will proceed more efficiently when participants are guided by explicit values for decision-making and equipped with an understanding of how to productively work through cultural misunderstandings.

Contact one of our consultants when you want help in avoiding
the culture traps in your merger