Cultural integration, says Fines-Allin, is one of the most overlooked but critical aspects of success in these transitions. “It’s not just about financials and operations,” he asserts. “It’s about people and values.” Conducting a cultural assessment of both organisations early on can help leaders identify areas of alignment as well as potential friction points. These insights can then guide the process from onboarding to leadership appointments, creating a cohesive and unified new organisation.
This is where HR can play to its strengths. With a view across the landscape of the merger, the function has the opportunity to celebrate shared successes and achievements at critical milestones along the way. HR leaders can also highlight the potential benefits to employees of being part of a bigger organization. They can share new roles, new organisational structures, and new development opportunities, all of which, as Fines-Allen remarks, can turn apprehension into excitement.
Andrew Saffron, director of Innermost Consulting and author of the book “Better Culture, Faster” offers another viewpoint on the cultural side of M&A. “The only reason to talk about culture is to determine whether your culture is going to help you to achieve your strategic goals or get in your way,” he says. “For example, if your organisation is bureaucratic, siloed, and hierarchical, it’s likely that you don’t move at speed, you’re missing opportunities, you’re wasting money, and duplicating effort.”
Whether the M&A exercise is simply one business taking another or two businesses merging on a more equal basis, the central message remains the same. Communication must be high on the agenda and there needs to be transparency throughout HR’s work.
With this in mind, Saffron says it’s worth remembering the adage that “there’s no such thing as a merger... it’s always an acquisition.” In other words, rather than merging cultures it is unavoidable that the ‘acquired’ employees will always feel subsumed into the existing culture. Therefore, that culture needs to be a positive one for the overall resulting organisation. It will take time for new employees to understand this culture and get on board, and it must be remembered that these new employees have a different view of that company culture that people in the acquiring business don’t necessarily appreciate.
Whether the M&A exercise is clearly one business taking another or two businesses merging on a more equal basis, the central message remains the same. Communication must be high on the agenda and there needs to be transparency throughout HR’s work. While this communication will ensure all employees—and especially those incoming—are made to feel heard and welcome it will also inform the process of understanding what elements of company culture can stay and what needs to change or evolve.
Saffron advocates the use of structured workshops among employee to aid the process, adding that while HR can design these initiatives, the workshops should led by senior people from within the organization. “The value of senior people showing up to genuinely demonstrate their interest in the new people’s experience is massive,” he says.
But while talking and listening is one thing, HR must always be sure to act upon the information it gathers. The new company culture will not simply materialise: HR must be active in developing this aspect of the new business. “Asking, but not acting, potentially makes things even worse because you’ve raised an expectation,” says Saffron. To this extent HR must lead by example, demonstrating how the new organisational culture is one where employees are not just listened to but have a real influence over their workplace.