I was asked a question during in a facilitation session the other day.
“When companies merge, why wouldn’t you just grab the strategy, processes and systems that work for the largest company and adopt them for the whole company?”
My response was “Because you need to ensure you take into account the culutre and the companies intangible assets to ensure you have a successful outcome.
It reminded me of this Article I read years ago (Hays Group) which identified that 91% of mergers fail as a result of not taking into account the culture and other intangible assets.
- “The great majority (93%) of business leaders made traditional due diligence a high priority, whilst over half (55%) focused on IT systems integration. However 58% confess that over-prioritising systems integration resulted in insufficient focus on intangible assets and cultural integration.
- And more than half of business leaders believe that this intensified the risk of failure: 54% state that neglecting to audit non-financial assets such as business culture increases the danger of making a wrong acquisition.”
So Caveat emptor (buyer beware) when you are looking at making a change whether it be a business or in your own personal life, do not underestimate the power of culture.