Focus on culture early on. Every M&A is as unique as the two companies involved, and there is no universal template to follow. Make sure you analyse both cultures thoroughly so that you can make fully informed decisions when preparing and implementing your cultural integration strategy. Culture management must be a part of the overall integration effort, not just an isolated HR process.
After you have analysed the individual and organisational behaviours, you should have an understanding of how people operate in both companies. This will serve as a starting point to defining the new merged culture that will respect your business objectives. Now, determine how you want your culture to look like. Think in terms of leadership style, company values and directionand talent management.You should be able to merge vision and values of the two companies into a new statement. It is essential that you create a set of core values that are meaningful to employees from both organisations. Equally important is that whatever you decide on, all the executives from the CEO level downwards need to stand by it, and take every opportunity to role model the desired behaviours. Design a new recognition program to reward the behaviours you are trying to encourage.
It is extremely helpful to have a person on your M&A team that is exclusively responsible for the cultural integration. That way you can overcome the action freeze, which many companies face after the M&A integration is complete. After all, good intentions during the planning stage mean very little if you fail to materialise them later on. Do not forget to have a sound communication strategy in place, and a communication channel available at all times to connect with the middle management.
Use your new recognition program as a positive communication tool of the new vision and values to all employees. Recognising and rewarding behaviours connected to a specific value will help establish that value and create a more significant impact. For doing this properly, you may consider designating recognition ambassadors within both merging companies. Seeing trusted, familiar leaders encouraging positive appreciation within the merged organisation will help the employees from both companies to realise and acknowledge the positive efforts and valuable contributions from the colleagues in the other company.
Launch your recognition program shortly after the M&A is announced and make sure that it is utilised consistently. This way you will engage all employees in the new culture of recognition, which acknowledges their continued value to the new merged organisation. After all, your goal here is to unite all employees behind the new vision and values designed to bring together the two organisations.
Veronika Bacova