Mastering the merging of two businesses
According to PwC, culture clashing is the number one reason why business mergers and acquisitions fail. In this episode, we will discuss why extracting the best bits of both cultures is better than creating a new one completely.
Branding Before Breakfast Ep 182 Mastering the merging of two businesses
Good morning. My name is Kiri, I’m the Business Growth Strategist here at Tiny Hunter. And today I want to talk about business acquisitions and mergers, because there is a lot that goes into the joining of two companies, particularly in terms of branding and culture.And I think culture, unfortunately, is one of those elements that can get overlooked throughout the process. And according to PwC, it’s actually one of the main reasons why business mergers can fail and why people tend to leave an organization after there’s been such a big change.
How can companies best navigate these big changes and ensure that their team feels really excited and supported throughout the process? First, you need to look at the two separate companies and consider the fact that there are two very different ways of working, two different sets of processes, ways of communication, two very set cultures. And I think often when a merger or a forming can happen, there’s a lot of emphasis on the ‘new.’ There’s a lot of talk around the new brand, and the new ways of working. And I think all this talk of newness, while it can infuse energy and life into a company, can also be a trigger for some people, as they feel a disconnection from the past.
So what is an important thing to do? Early on in the stages, have conversations with team members from both businesses, from every part of those businesses and really understand, what are the best bits about their cultures, the strengths, the things that we want to retain and then extract those elements and use them to define a new set of values, a new way of working that isn’t a complete departure from the past. And more so an evolution, if you want to say. This way people will still feel that connection to their current culture, but you’re really combining the best of two worlds to create something that people can get behind and really believe in and get excited by.
That’s it from me, it’s time for brekkie.
Written by: Kiri White
Published: April 11, 2024