While closing an acquisition deal may take months or even years of planning, many acquisitions fall flat of pre-deal expectations because of a lack of focus on the day-to-day experiences of the acquired employees, Harvard Business Review writes.
In a study involving acquired employees across 15 acquisitions of a large multinational organization that routinely acquires companies, researchers found that acquired employees generally felt underutilized, undervalued, under informed and needed guidance to navigate integration. Oftentimes, acquired employees reported lower engagement than legacy employees—a discrepancy that lasted five or more years after the deal closed.
Employee turnover, however, during times of organizational change is not only harmful for productivity and to teams, but it also diminishes the value of the acquisition.
Researchers suggest that company executives conduct a culture assessment with an organization-wide survey, focus groups across departments and interviews with key leaders on the team to determine the compatibility of both companies’ cultures. It’s important to assess your own organizational culture as well as the culture of the company being acquired. An understanding of both cultures will help executives determine which aspects to prioritize during integration.
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