Integrating organisational cultures, focussing on transparency, and enhancing internal communications are key to successfully navigating mergers and acquisitions.
By Simon Kent
Bringing businesses together can be exciting. Creating a larger organisation that is able to do more and achieve greater success is something many business leaders aim to achieve. However, the process can also be divisive—even destructive. In particular, organisational culture can be difficult to manage or maintain, indeed for those in the business being bought, it can feel as if they are losing the culture they had. Without a clear plan or process, employees can be left confused, uncertain for their future or what the resulting organisation might be, and as Claire Hughes, HR business partner at Totalmobile points out, this can have deeper implications. It's often the employees who have the skills and knowledge that drove the business to this point in the first place. The challenge for HR then, isn’t just making sure the new organisation is a better business, but to ensure the new organisation retains the talent it needs.
According to Hughes, successfully navigating a merger means considering the process from both sides: internally, to understand why the business was acquired and how it will fit into the company, and from the perspective of the acquired company, to understand what the future also looks like for them. “This dual perspective is vital,” she says, “as it can be unsettling for existing employees to navigate the uncertainty that comes with such transitions.” While a solid integration plan covering the basics of the merger is imperative, Hughes notes that the management of company culture needs to be part of the process too. “Whether the goal is to maintain separate cultures, blend them, or create a new one, the approach must be intentional and include clear actions within the plan to achieve the desired outcome,” she says.
Jodie Hill, managing partner at Thrive Law, agrees the consideration of people and processes lies behind an effective integration. Initiatives and communications must offer a space for sharing ideas and learning about both companies’ cultures. “Storytelling is important here,” says Hill, “as sharing the people behind the businesses helps build connections and a shared sense of purpose. Recognising individual contributions makes people feel part of something bigger and drives collaboration.”
Workshops, virtual town halls, and sentiment analysis are all useful tools for ensuring HR secures the crucial employee buy-in required, making sure everyone is aware of what’s happening around them and feels seen and heard.
“Encouraging honest conversations where everyone can express their concerns and hopes helps make the transition smoother and allows you to see any issues which may be brewing,” says Hill.
Craig Fines-Allin, chief people officer at Instant Offices, says his business has seen how organisations that prioritise empathy, transparency, and collaboration during these times are better equipped to build a thriving culture and therefore can retain top talent and maintain morale. “It’s about creating an environment where change feels less like a disruption and more like an opportunity for growth,” he says, "both for the business and the individuals within it.”
“Whether the goal is to maintain separate cultures, blend them, or create a new one, the approach must be intentional and include clear actions within the plan to achieve the desired outcome.”