Corporate mergers often stir a mixture of excitement and uncertainty, particularly when it comes to operations, job changes and workplace culture. The recent merger announcement between Getty Images and Shutterstock has likely stirred mixed emotions, reminiscent of the challenges associated with large-scale changes. However, when transformation is on the horizon, it presents an opportunity to revisit operational practices and redefine company culture.
With a well-planned approach, what might initially seem like a turbulent period can become a pivotal moment to strengthen workplace culture, streamline decision-making, and implement operational best practices. Cost synergies achieved by combining operations can free up resources for reinvestment in growth areas such as innovation, new markets and sales, building momentum for future success.
The saying “fail to prepare, prepare to fail” is particularly relevant during mergers. Major changes, whether planned or unexpected, can be disorienting for both employees and leaders. For organisations moving forward, careful planning and open communication between both parties are essential to handling challenges and maintaining focus on desired outcomes.
When embarking on a merger, it is crucial to prepare each workplace culture for the transition if the intension is to work collectively together. Culture often proves to be one of the biggest hurdles in change management; without employee engagement and ownership, progress can easily stall. Incorporating this into the merger strategy is vital to achieving shared goals.
Despite its importance, cultural fit and integration often receive little attention in the pre-deal phase. The essence of an organisation—its values and norms—plays a critical role in how smoothly and successfully two companies can come together. For HR teams, the stress of merging can mean that culture takes a back seat, making it even more critical to proactively manage cultural alignment.
Asking questions such as “tell me about a story that is celebrated around here?” can provide deep insights into a company’s heart and soul. These cultural elements contribute to a company’s identity and success. Sometimes, they can be the main reason for an acquisition, particularly when it involves cultural attributes such as innovation or customer focus. Identifying which cultural aspects to preserve and integrating them effectively into the newly formed organisation will be vital. As part of the integration process, cultural assessments can be valuable tools for aligning and understanding the organisations’ cultural dynamics.
In many cases, maximising the value of a merger requires leveraging the combined talent of the organisations. While it may sometimes make sense for each company to continue working independently, collaboration often unlocks greater benefits. Bringing together previously separate teams fosters idea exchange, strengthens relationships and creates a unified foundation for moving forward.
Equally, mergers also serve as a natural point to define a fresh corporate identity. By stepping away from the constraints of each component organisation, they can craft a shared vision that reflects the strengths and ambitions of both parties.
Effective leadership and change management is key to inspiring employees and shaping a cohesive new culture. This starts with assessing the leadership of both businesses. For instance, how experienced is the senior team? Is a new, joined-up team being created? Consideration should be given to accelerating the forming, storming and norming phases of the new leadership team. This will be critical in steering the direction of the company and how the rest of the organisation perceives the change.
There is an inherent risk that employees may feel disconnected or uncertain about the identity of the new organisation. Integrating two previously distinct entities into a cohesive whole is a considerable challenge, and talent attrition can often be an unfortunate byproduct. To avoid this, leaders should prioritise inclusivity and transparent communication, foster a sense of belonging, and emphasise the opportunities now available to them.
Mergers often reveal differences in policies, procedures, and ways of working—from contractual obligations to pension schemes and bonus structures. These are usually uncovered in the due diligence phase, but these initial setbacks should be tackled head-on. Thought must be given to how these different ways of working, benefits, and policies will be merged.
Mergers can be challenging, but they offer a real chance to build stronger, more streamlined operations. While challenges such as loss of focus and employee attrition are real, they can be addressed through considered planning, strong leadership with a clear direction and an unwavering focus on people and culture.
We discussed this topic at a recent Argon & Co roundtable open to our Connect community. If you are interested in our upcoming events and Connect community for business leaders click below.
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