M&A is one of the biggest types of organizational change causing stress and uncertainty to employees, so cultural due diligence is a necessity. An anxious or unfocused employee base loses productivity. Proactively managing communication, stress and the change process is critical when organizations undergo such transformation and are trying to achieve peak synergies. Managing and mitigating communication, stress and the change process needs to start as soon as possible – it’s never too early to consider the people, of whom the M&A will have the greatest impact.
Differing organizational cultural norms drive different behavior which, in M&A, results in culture clash. Culture clash occurs when the buyer tries to impose their systems and philosophies on the acquired firm, who naturally tries to resist and preserve their existing culture. The greater the degree of cultural differences, the greater the risks are for culture clash. We help clients mitigate human capital risks by providing data-driven intelligence on cultural distance, enabling buyers to more accurately assess resources and develop scorecards and dashboards to implement and monitor transformation progress.
Our expertise helps you address human capital risks at every step of the way through our cultural due diligence work stream:
The situations to use our approach include:
The benefits of this approach include: