Systems vs. Culture: Which Breaks a Merger First?
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In your experience, which destroys more post-merger value: failure to integrate systems or failure to integrate culture—and can one ever compensate for the other?
In my experience failure to integrate culture is more detrimental to an integration. Many employees expect to learn new systems when joining a new company or are more likely to follow along with the new experience if they feel respected and safe in their day to day work lives. That’s why culture is so important. If they go from a more relaxed culture to one that over bearing or feel that their culture is begin ruined or dismissed I have found they are more likely to feel unsatisfied and look for employment elsewhere.
Problems with company culture after a merger usually cause more issues than problems with combining systems. especially that the integration plan system could include an alternative solutions for such risk of failure, while for culture aspect, if employees from both companies can’t work well together or share values, the merger is less likely to succeed, even if the technology and processes fit perfectly.
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