Importance of people-orientated approach for managing M&A change

Importance of people-orientated approach for managing M&A change: culture and communication must be priority actions.

From Robert J Toogood, Senior Partner – Chaordic Solutions:

As we have heard many times recently, revenue and growth is very important for our future survival … this can be achieved in a variety of different ways.   One such way is to embark upon a Business Transformation programme, another is to merge with or acquire a complementary or even a competitor company.

A recent survey report from Deloitte shows how mergers and acquisitions (M&A) can help drive revenue and growth … in this report, the view is shared that as the economic recovery continues, albeit slowly, they expect companies in many industries to rely increasingly on M&A to help drive revenue growth and bottom-line performance.  Survey results show that 52% of executives interviewed expect M&A to add more than 5% to revenue growth on a compound annual basis over the next two to five years.  This is significant when compared to average annual revenue growth of the S&P 500 of approximately 4% over the past 10 years.

The results from another survey, this one from McKinsey, show that in spite of the difficult economy, most executives still think M&A is an important strategy for growth.  In fact, nearly half of the respondents expect their companies to explore more deals in the next 12 months than the previous 12 months, and small majorities expect them to start or complete at least as many, if not more.

However, history shows that the majority of mergers and acquisitions fail to deliver the originally expected benefits and value.  So why is this so?  There have been many surveys and studies that have attempted to understand these underlying reasons; people related challenges tend to dominate the findings.  This therefore emphasises the importance of taking a more people-orientated approach to managing change within these situations, making sure things like culture and communication are properly addressed as priority actions.

We can help you address these challenges effectively so you can ensure you are one of the 20% of organisations that are able to succeed in delivering the original expectations for the deal … book a free, introductory consultation call to discuss your immediate challenges on a non-obligation and confidential basis – simply call us on +44 (0)1983 617241 to set something up.

More … http://www.chaordicsolutions.co.uk/services.html