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Mergers

Three out of five mergers do not create value for the shareholder.
ROI is often longer than 18 months.
70 % of mergers fail.
Why?

No clear strategic vision of what the new entity should become after the merger (lack of Strategic Vision).
Reciprocal crisis of confidence and inability to make decisions quickly (vagueness of Desired World).
Hiatus between concerns during negotiation (strategy, finance) and during implementation (organisation, culture, people).
Cultural incomprehension between different groups of countries (what Worlds are to be brought together).
1.Incompatibility of cultures (lack of agreements).

1.Prepare integration far upstream and not only the financial operation: make two distinct teams from the start of the project.
1.Align vision and values: the first stage involves a cultural audit to identify the common points and differences between the Worlds to bring closer together: state of greatness, recognition, expression of judgement, collective figure.
Mobilise staff energy through constant and filterless communication.
Assume clear leadership: no compromise in decision-making, creators and facilitators of trust.
Act quickly: the first 100 days set the tone, select a limited number of Bridges to obtain results between 6 months and 2 years.
Focus on the business and the client rather than on the organisation and the people.
Concentrate synergies on back office functions (purchasing, IT, management, HR) and save "culturally strong" functions like sales, development and production till last.
Give clear signs to the management about what is expected of it: objectives, bonuses.

Well-thought out communication to employees, investors and the public: a new name bearing a new World
Tight schedule of aims to achieve: 2 billion in savings over 3 years, 60% at one year, 80% at two years
Mutual respect achieved by focusing on the future to build (desired World) and not on a divergent past: in-house celebration of successes as soon as an aim is achieved (new state of greatness), development of an attractive vision of the future

The top management: very significant bonuses if achievement of aims linked to merger (up to 40%), no malus on risk of departure.
Key expertise: in this case, researchers, through analysis of their own motivation (resources, publications, autonomy, company image, recognition) and fulfilment of all criteria. How do we make them facilitators?

Two observations:

The earlier people are involved in the process, the more easily they integrate it,
The smaller the entity to which they belong, the faster the integration.

Comparison and harmonisation of the statuses of the different categories of staff (retirement, profit-sharing, remuneration)
Management of acquired benefits on both sides
Removing duplication
Reorganisation of structures
Intermarrying of company cultures
Redundancy plan
Management of voluntary redundancies

The management feels ill-equipped to be able to communicate with employees but is the best channel of communication..

The hierarchical path is more credible than that of the union organisations or works councils
The nearest hierarchy is that from which the most is expected
One in three executives is invested with the official task of giving information
Four out of ten executives declare themselves to be ill-equipped to cope with demand

The tools used are not interactive enough

Criticism focuses more on the substance than on the form.

Communication is neglected or too late on the part of managers who have no experience of mergers
Once the merger has been announced and the strategy produced, there is no operational communication
But for colleagues this is where the questions start.