Given that more than half of mergers fail to meet their targets (83% in one study by KPMG), there’s lots of evidence that certain conditions can be fatal to deal success. Take heed if you don’t want your NewCo to end up in the morgue.
1. Silence Is Deadly.
When a merger is on the horizon, the air is usually swirling with FUD (fear, uncertainty, and doubt). People are worried about how the deal will affect their employment and their work life. They’re desperate for official answers but will settle for rumour if nothing else is available.
Leaders sometimes have good intentions behind their silence — they’re waiting until they have more reliable or complete information before releasing anything. But the vacuum will always get filled, often with an inaccurate or anxiety-inducing substitute for the truth. Not a good environment for getting things done or working together.
2. Marco… Polo!
With ever-shifting org charts, additional office locations, and faceless staff directories, employees can feel like they’re wandering around in the dark.
Struggling to find the right person leads to frustration and less incentive to try the next time they need help. Opportunities to forge new relationships are lost in the shuffle.
3. Silo City
Work continues before and after the merger, but without proper support for collaboration, staff are more likely to labour on in isolation. They won’t get the benefit of each other’s knowledge, they won’t feel the satisfaction of cooperating, and they could duplicate effort and even work against each other (whether intentionally or not).