1. Just Merge Strategies. This could work if you have the same markets, products, competitive advantages, suppliers, structures, cultures, and customer demographic, otherwise research has shown the result is a watered-down, diffused strategic result. Sometimes it's better to keep them separate, or focus on just one agenda.
    

2. Focus on Performance Measures. Sure, and there are many models out there (Balance Scorecard, etc). But the failures of integration occur for reasons deeper than this. Instead integrating cultures, many use these measures to sustain old cultural agendas; and effective weapons they can be for achieving this. Alignment of beliefs are more critical initially than performance measures.
    

3. The Balance Sheet Determines the Deal: Of course the finances of an M&A deal are essential, but the merging of cultures requires more than the merging of financial statements. In fact, for thousands of years civilizations have struggled with this factor, and many companies still do today. The one thing that rapidly degrades M&A events have little to do with financials, and much to do with people.
    

4. The New Owners Promised To Preserve Our Culture: Really? Our research of thousands of companies only found 2 that did this. Most CEOs find unintentionally, or not, that the dominant culture rules and is reinforced by policies and procedures unwilling to accommodate this promise.
    

(c) 2005 The SAGA Institute

Institute change programs were designed upon these foundations. For more information on how these could apply in your organization click here.