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1、REPORTThe cultural symphony in PMIsValue maximization through culture-centric integrationManagement summaryIn the fast-paced world of mergers and acquisitions(M&A),making the effort to effectively integrate organizational cultures during post-merger integrations(PMIs)is essential for maximizing deal
2、 value.Our project experience shows that up to 30%of anticipated merger value is at risk if employees behavior reduces operational efficiency and innovation,and delays synergy realization,overall employee satisfaction and talent retention.Driven by this fundamental insight,we advocate for a truly cu
3、lture-centric approach to PMI along all deal phases substantiated with best practices from 500+global Roland Berger PMI projects,insights from academia and 70+firsthand interviews with professionals.In the PMI orchestra,the CEO and the Integration Management Office(IMO)act as intendant and conductor
4、,the key players responsible for a successful performance accounting for hard and soft integration factors.In managing a culture-sensitive integration,they need to focus on five aspects that all require a substantial amount of openness and pragmatism along the way:Assembling a professional orchestra
5、:Provide orientation and establish your focal role in guiding cultural integration efforts with clear responsibilities early in the process.This way,involving employees from all relevant organizations to co-create a cohesiveculture-driven integrated Target Operating Model(TOM)is more efficient and e
6、ffective.Setting the scene:Ensure deep cultural reflection and allocate sufficient C-level attention to reflect on your own companys culture,evaluate the target culture and create a cultural vision;account for specifics on the functional/divisional level.Listening to sound and dissonance:Proactively
7、 prioritize,as not all areas might integrate with the same depth,timing and speed.Carefully align between the merging entities where and when cultural dimensions such as organizational hierarchies,KPIs,goal orientation and governance structures should be merged.Cover:Caiaimage/Martin Barraud/Getty I
8、mages2 Roland Berger|The cultural symphony in PMIsContents 1 2 3 4568 111214PageAssembling the orchestraSetting the sceneListening to sound and dissonance Defining the ideal scoreRehearsing smartDefining the ideal score:Be open to adapt the integrated business model and TOM along the way,as dependin
9、g on the respective context different dimensions of the blueprint,such as organization or governance,might be attributed with higher importance.For example forces evoked by ownership structures might only surface at a later stage.Rehearsing smart:Prepare for a need to buffer cultural shock moments i
10、n all stages of deal and PMI periods from communication to interventions.Consider,if viable,establishing a regular survey to anticipate and react to rising sentiments.A dedicated culture manager accompanying the IMO in regulating shifts in employee perceptions and motivation has been reported to be
11、a game changer by many of our interviewees.3 Roland Berger|The cultural symphony in PMIsIntroductionCorporate culture is the set of shared values,beliefs,behaviors and norms that shape the social and psychological environment of a business it influences how employees interact and align with the comp
12、anys mission and goals.Corporate culturePost-merger integration(PMI)is the comprehensive effort of combining and rearranging businesses after M&A to maximize deal value and to ensure a smooth transition.Our study Music to your ears The sound of successful post-merger integration demonstrates that ef
13、fectively managing cultural factors is a key pillar for significantly enhancing deal outcomes.Despite growing awareness over the past decade(s),cultural integration is often not sufficiently prioritized in PMI processes,which is likely to diminish deal value up to 30%as our experience shows.Key chal
14、lenges in creating a culture-sensitive integration concept can be inadequate understanding of organizational cultures,limited resources for cultural initiatives and an imbalance in managing cultural integration.Informed by academic insights,more than 70 in-depth interviews with M&A professionals fro
15、m diverse industries and analysis of over 500 global integration projects supported by Roland Berger,we synthesized best practices in an approach to addressing cultural integration comprehensively.4 Roland Berger|The cultural symphony in PMIsTo ensure that the integration process is comprehensively
16、covered,and the key integration aspects are addressed,the culture-centric activities follow the fundamental PMI phases before and after Closing.Integration preparation from Signing to Closing includes developing the integrated business model and TOM,creating an integration roadmap,and ensuring Day 1
17、 readiness and testing.After Closing,key activities are execution hypercare and integration implementation management.To illustrate the critical role of culture as an invisible bond between the stakeholders in achieving successful integration,our study uses the music-inspired metaphor of an orchestr
18、a.Chapter 1:Assembling the orchestra highlights the key aspects of the initial steps of integration,akin to gathering the right musicians and instruments for a performance.Chapter 2:Setting the scene points out the importance of clarifying the overall integration target state as well as creating awa
19、reness on key drivers of cultural complexity in integration.Chapter 3:Listening to sound and dissonance delves into understanding and addressing cultural differences and conflicts that arise,such as identifying and resolving discordant notes during a rehearsal.Chapter 4:Defining the ideal score invo
20、lves creating a comprehensive integrated business model and TOM,much like composing a musical score that aligns both operational and cultural objectives.Chapter 5:Rehearsing smart emphasizes the need for strategic planning and practice before Day 1,akin to refining performance through careful rehear
21、sal,to ensure smooth integration.5 Roland Berger|The cultural symphony in PMIsAssembling the orchestraPMI processes need to align the roles of all contributors to perform a harmonious play Effective PMI processes require skillful coordination among diverse contributors.The key lies in aligning stake
22、holders roles early in the PMI process ideally pre-signing.To allow for truly collaborative approaches,traditional hierarchies should not be in the way of synchronizing contributors,so the organizations can navigate integration complexities adeptly.In aligning the roles,think about how professional
23、orchestras bring together talent and structure to perform harmoniously.AAs our survey of M&A professionals shows,the Concert house or shareholder/owner,defining the strategic vision and direction for the merger,plays a paramount role as a driver of culture 1A Roles in the cultural integration orches
24、traSource:Roland Berger 1)CFO,COO,CTO,CIO,etc.,potentially with double role as key functional leadsMelody instrumentsBusiness functionsConcert houseShareholderFinancial marketCustomersSupplierCompetitorsSociety/RegulatorBass instrumentsSupport functionsAudienceConductorIMOIntendantCEO+C-suite16 Rola
25、nd Berger|The cultural symphony in PMIsin PMIs.Working closely with them is the Intendant,the CEO,setting integration guidelines and targets.As an M&A manager noted,Even though the IMO leads the cultural integration process,the success of PMIs depends significantly on the key players of the process.
26、CEOs need to be visible in terms of culture,set priorities and actively contribute.Supporting them is the Conductor,represented by the IMO,aligning teams with strategic goals.Business functions,like Melody instruments(e.g.,engineering,production,sales),execute plans with expertise.Bass instruments(e
27、.g.,HR,IT,finance)provide stability.Over 50%of our interviewees stated that in addition to the IMO,they value a culture manager role,crucial for alignment.However,our experience in PMI reveals that this role seldom receives adequate budget.Together,these roles unite for successful PMI,much like a sy
28、mphony where each contributes to harmony,crucial for a smooth transition and maximizing organizational value.B Our project experience at Roland Berger convinces us that,especially in global setups,digital communication immensely boosts efficiency.At the same time we observe that BIntegration prepara
29、tion process steps and leading roleSource:Roland Berger Intendant C-suite Conductor IMO Melody instruments Business functions Bass instruments Support functions Intendant C-suite Conductor IMODefining the ideal scoreListening to sound and dissonance Rehearsing smartChapterRole in the orchestraCultur
30、al assessment Prepare cultural assessment survey and workshops Perform fit-gap assessment Derive cultural principles for blueprint designDefining TOM requirements Map customer needs and key capabilities Evaluate function-specific synergy potentialsDesigning the TOM blueprint Develop control axis opt
31、ions and sub-building frameworks Set up 23 blueprints for interim operating modelsExecution roadmap design Formulate change management strategy Create detailed integration plans Initiate IMO structure for implementation,outlining timelinesPerforming harmoniously7 Roland Berger|The cultural symphony
32、in PMIsprocesses with superior performance are those where it is ensured that key protagonists spend defining moments together on-site.Also in critical phases the core team around CEO and IMO should be able to work face-to-face,reducing communication barriers and therewith the risk of misunderstandi
33、ng.The process of cultural integration begins with a cultural assessment,akin to tuning instruments in an orchestra.This first phase involves conducting surveys and workshops to understand cultural dynamics,performing fit-gap analyses and deriving foundational principles that will resonate throughou
34、t the organization.Following this,the second movement,Defining TOM requirements,parallels orchestrating melodies by mapping customer needs,evaluating synergies and establishing integration principles that align diverse elements into a cohesive whole.As the composition progresses into the third phase
35、,Designing the integrated TOM,the focus shifts to developing various blueprint options defining the value creation path(detailing synergies)mainly driven by the operative functional departments.Finally,the Execution roadmap design phase directs the performance toward seamless integration through a c
36、hange management strategy,outlining detailed integration plans,and initiating the IMO.This approach aims for a coordinated audience presentation that embraces all the necessary friction and adjustments during rehearsals to ensure that all elements work together effectively.In the symphony of PMI,tim
37、ing is critical.Each role,like instruments in a symphony,must perform tasks aligned with the M&A timeline.Synchronizing cultural integration with key milestones maximizes efficiency and value creation.Setting the sceneFor top management and IMO,the culture work starts early in the deal process ideal
38、ly before signing with the integration considerations resulting from the deal rationale.Hence,to effectively approach cultural integration,it is crucial to identify the PMI archetype involved in the merger.C2C Levels of integration and relevance for cultural integrationSource:Roland BergerDay 1 full
39、 integrationBalanced integrationParentingStandaloneIllustrationRequiredfocus on cultural integrationAcquirerTargetAcquirerTargetAcquirerTargetAcquirerTargetLowLowLowLowHighHighHighHigh!8 Roland Berger|The cultural symphony in PMIsWe distinguish four possible levels of integration that already indica
40、te the need for and required focus of cultural integration.Day 1 full integration:Immediate and uniform integration across all organizational units and functions from the first day of the merger Balanced integration:Gradual and selective integration within the first 12 months,focusing on both collab
41、orative and individual approaches to blending operations Parenting:The acquiring company provides strategic guidance and support,allowing the acquired company to maintain(partial)operational independence Standalone:The acquired entity operates independently with minimal integration efforts,maintaini
42、ng its original operations and cultureFor Day 1 full integration and Balanced integration,a high focus on cultural integration is essential to ensure cohesive operations and effective collaboration.The limited implementation timeline of a Day 1 full integration requires that,cultural aspects are to
43、be prepared meticulously,but implementation and refinement is to be handled pragmatically.In the Parenting scenario,the cultural focus is slightly less important but still necessary for aligning values and goals.For Standalone,the focus on culture is less significant as the acquired entity operates
44、independently.However,one of the biggest pitfalls in PMIs is to disregard cultural integration completely in this scenario.Cultural integration remains crucial in the standalone approach because ownership structures can change,and a new leadership direction may be introduced.In our interviews,a fina
45、ncial investor noted,Even though operations remain independent,change management measures are important to gain the trust of the employees and to put the owner in a position to effectively implement the value creation plan.Drilling deeper into this insight gained from our experts,our project experie
46、nce revealed that regardless of the integration depth,ownership structure,business model,performance,geography and size are key drivers for special focus on culture for developing a PMI strategy that maximizes value.It is not only what you play,but how you play it in PMIs it is crucial to shape an i
47、ntegrated Target Operating Model with sensitivity to cultural barriers.Dr.Jrg Delhaes,Principal9 Roland Berger|The cultural symphony in PMIsOwnership structure is deemed the most crucial factor because different ownership structures(e.g.,listed corporations,family-owned businesses,foundations,start-
48、ups)inherently introduce distinct cultural values into organizations.As one corporate M&A professional noted,Different ownership types tend to apply distinct cultural values within their organizations.When the ownership structures of the target and buyer differ,the importance of cultural integration
49、 cannot be overstated.Business model comes next,describing how a company creates,delivers and captures value,including details on target customers and value propositions.At Roland Berger,for many of our clients business model integration is one of the key drivers for many M&A deals.To achieve the fu
50、ll synergy potential on the top line,we observed that cultural integration of the sales and strategy departments is key for a harmonious collaboration.Performance is also vital because it directly impacts financial outcomes and operational effectiveness,influencing overall integration success.A priv
51、ate equity professional pointed out,Performance has not only an economic aspect,but also an immediate mindset component that needs to be considered in integration.Purpose is the core driver for this component.Conversely,and somewhat counterintuitive,Geography and Size are less pivotal in company int
52、egration.In most of our Roland Berger PMI projects geography and size are the most obvious areas to provide cultural challenges thus,awareness for cultural inclusion is naturally established for key personnel in both companies and does not require a particularintegration focus driven by the IMO.DDDr
53、ivers of cultural integration need ranked by number of mentionsSource:Roland Berger90%Ownership I60%Business model II55%Performance III35%Size V40%Geography IV10 Roland Berger|The cultural symphony in PMIsListening to sound and dissonanceConducting a cultural assessment is akin to precisely tuning e
54、ach instrument of an orchestra as a fundamental aspect to harmonize melodies.This crucial process focuses on analyzing the integrated TOM blueprint dimensions business model and portfolio,footprint and organization,collaboration and governance,processes and systems across merging entities.By identif
55、ying cultural similarities and gaps,organizations gain insights into how to align or blend cultural elements effectively in the TOM design phase.Tailoring these dimensions ensures a nuanced assessment that guarantees a smooth cultural integration,which ultimately fosters cohesion and synergy in the
56、PMI.It is important to consider not just the formal logic but also to reflect on who is taking over whom from a cultural perspective.For instance,in cases where the acquired company has a particularly strong or beneficial culture,it might make more sense for the acquiring company to adopt certain cu
57、ltural aspects of the acquired company.This approach can be crucial in scenarios where the acquired companys cultural practices align more closely with the overall strategic goals or operational efficiency desired in the new organization.Insights from 70+interviews underscore the impact of organizat
58、ional hierarchy on business steering.A typical example is that in a hierarchy-driven organization,there is a tendency toward top-down business steering.However,in a matrix organization,the potential for unclear responsibilities can lead to inefficiencies.Its desirable to ensure clear accountability
59、and well-defined roles to prevent individuals from avoiding responsibility and to truly foster a performance mindset.Decision-making culture significantly influences employees habits and therewith performance as well as operational(process)dynamics.Additionally,an organizations time horizon shapes i
60、ts values and collaboration principles:Short-term versus long-term goals influence an organizations values and collaboration principles,says another,emphasizing strategic outlooks role in culture.Transparency and governance also play critical roles:A transparent organization operates with clear gove
61、rnance principles,contrasting with a corporate-centric culture less seen in organizations with limited 3 Note to all new shareholders:how you assume your ownership role after the acquisition will highly impact the PMI value creation potential.Dr.Patrick Heinemann,Senior Partner11 Roland Berger|The c
62、ultural symphony in PMIstransparency.This showcases how openness and structured governance impact engagement and alignment.ETHREE WORKSHOPS TO DEFINE THE DESIRED TARGET STATE OF THE MERGING COMPANIES CULTUREIn the process of cultural assessment,a three-step workshop series has proven to be the best
63、practice to serve as key milestones,guiding the harmonious blending of the merging companies.The first workshop focuses on understanding the Acquirers culture.Participants thoroughly explore the cultural characteristics embedded in their business model and TOM in a structured grid.This deep dive ena
64、bles a comprehensive understanding of its operational melody.The second workshop shifts attention to the Targets culture,facilitating a similar assessment as conducted in the first workshop with the Acquirer,ensuring pre-closing alignment within antitrust-free(!)parameters.The third workshop in the
65、cultural assessment process focuses on defining the desired future state of the company culture.It starts with a comprehensive review of both the Acquirers and the Targets cultural attributes,utilizing insights gained from previous workshops.Participants employ a decision tree to identify and assess
66、 cultural gaps,determining whether to retain aspects from one company or integrate them into a blended culture.As emphasized by a CEO:Beyond the formal logic,reflect on,Who is taking over whom from a cultural perspective?This unified vision sets the foundation for the subsequent step:TOM design.Defi
67、ning the ideal scoreThe quality of the integrated TOM is considered most critical for a successful integration,serving as the blueprint and North Star for how the combined entity will operate post-integration.The business model and TOM dimensions relevant in PMI are business model and portfolio,foot
68、print and organization,collaboration and governance,and processes and systems,with the aim of maximizing value beyond financial synergies.It should be in the center and reflect all cultural integration considerations.As a CEO noted in one of our interviews:Knowing and considering culture is more imp
69、ortant than any operational integration and value creation ambition.For the definition of the ideal score of a culture-centric TOM development,it is recommended to root it directly back to insights gained from the cultural assessment.The developed cultural guidelines and prioritizations for the inte
70、grated business model and TOM act as the IMOs baton,ensuring cohesion across the ensemble of business and support functions designing their individual company blueprint,accounting also for cross-functional processes.As timing of the integration is of key importance for each aspect,the business model
71、 and TOM then needs to be translated into actionable integration plans for each organizational unit and effective communication channels need to be selected to orchestrate a seamless transition.412 Roland Berger|The cultural symphony in PMIsE Cultural assessment dimensions synthesized from Roland Be
72、rger project experience,academic literature and conducted interviewsSource:Roland Berger,Denison,D.,&Ko,I.(2016).Cultural Due Diligence in Mergers and Acquisitions.Advances in mergers and acquisitions,5372 I Product-centricProcess-oriented thinkingDisruptive II CentralizedHigh level of cross-functio
73、nal coord.Hierarchy-driven III Diffused accountabilitiesRisk-averseShort-term performance goals IV Limited transparencyStrong&standard operative processesBureaucraticCustomer-centricProject-centric thinkingIncremental mindsetDecentralizedLow level of cross-functional coord.Matrix-drivenClear account
74、abilitiesRisk-takingLong-term performance goalsHigh transparencyCustomized operative processesLean organizationCompany BCompany A Perception of Company A Perception of Company BKey business model and TOM dimensions in PMI I Business Model+Portfolio III Collaboration+Governance II Footprint+Organizat
75、ion IV Processes+SystemsThe aspect involves the ways in which both entities generate revenue,customer base,value proposition and market strategies.Aspects of communication,joint problem solving and knowledge sharing practices.Oversight of mechanisms,policies,and procedures that guide the companys di
76、rection and the way decisions are made.Physical and geographical presence of the organizations,and addresses how departments and teams are structured and how coordination between departments is organized.Actions or steps taken to achieve business outcomes including the required IT infrastructure,sof
77、tware and tools used by the organization to support those processes.Selection Contact us to receive the full set!13 Roland Berger|The cultural symphony in PMIsOUR INTERVIEW PARTNERS CONFIRM THAT THE CAREFUL WORK ON THE COLLABORATION AND GOVERNANCE DIMENSION OF A TOM IS CRUCIAL FOR ACHIEVING THE ENVI
78、SIONED CULTUREInvestigating which of the business model and TOM dimensions is considered most important for culture and therefore a potential starting point for TOM design,we asked M&A professionals to map the four business model and key TOM dimensions to the proposed attention required to achieve c
79、ultural integration goals,ranging from low to high,based on the responses received in interviews.We classified the responses based on three characteristic company types:financial investors,family-owned corporates and listed corporates.Financial investors emphasized the significance of the business m
80、odel and portfolio,indicating a strong focus on synergy realization through aligning top-line strategies in a buy-and-build framework.Family-owned corporates ranked collaboration and governance and processes and systems as the highest priorities,highlighting the need for robust governance structures
81、 and efficient processes.Listed corporates prioritized the business model and portfolio the most,followed by footprint and organization,collaboration and governance,and processes and systems,reflecting a comprehensive approach to integration that balances strategic alignment with organizational and
82、operational considerations.Across all corporate types,legal and contracts and valuation and financials were consistently rated with low importance for cultural integration,indicating that these dimensions are perceived as less critical in the context of merging organizational cultures.FAt Roland Ber
83、ger we observed in many projects that it is the speed of value realization that drives acquirers to prioritize different business model and TOM dimensions.This drives financial investors and listed companies to put more weight on the Business model&Portfolio dimension.Family-owned corporates often p
84、lan their integration for a longer period and prioritize cultural work in business model and TOM dimensions that ensure seamless business continuity that enable value creation.Rehearsing smartFollowing the business model and TOM definition,the focus shifts to ensuring that all parts of the organizat
85、ion are ready to perform their roles effectively.This phase emphasizes teamwork and collaboration,discouraging isolated efforts(solos)during critical phases to maintain a unified and coordinated approach.An M&A professional from a family-owned corporate highlights the importance of the testing phase
86、:The testing phase is essential for identifying and addressing areas needing additional support postDay 1,ensuring critical functions receive the necessary attention and resources for a smooth transition.The dress rehearsal or testing phase involves the entire organization,testing systems,processes
87、and communication channels on both macro and micro levels.Much like a conductor overseeing continuous rehearsals before a grand performance,the IMO acts again as the overarching coordinator in this phase of the PMI.This comprehensive exercise allows for the identification of potential pitfalls and a
88、reas for improvement across the 514 Roland Berger|The cultural symphony in PMIsF Relevance of PMI business model and TOM dimensions for cultural integration by organization typeSource:Roland Berger Average range of answers received by company typeorganization.Its important to note that,as with any r
89、ehearsal,some discord or disharmony is expected and can be beneficial.These issues should be addressed constructively to enhance the overall readiness.Conducting rehearsals by function enables a granular examination of specific processes and procedures,further de-risking Day 1 and enhancing overall
90、preparedness.Best practices during this phase include having a clear play-by-play approach for each function by developing a structured guide to manage the integration process and adjust if necessary.It is important to identify hypercare needs,clearly listening to insecurities or fears IBusiness mod
91、el&Portfolio IIFootprint&Organization IIICollaboration&Governance IVProcesses&Systems VLegal&Contracts VIValuation&FinancialsFinancial investorsFamily-owned corporatesListed corporatesProposed attention to achieve(cultural)integration goalsKey PMI business model&TOM dimensionsFormal deal dimensionsH
92、ighLowHighLowHighLow15 Roland Berger|The cultural symphony in PMIsof the employees,recognizing them and planning for areas that will require additional support and monitoring postDay 1.This is the moment for the culture manager to be highly visible and release the pressure building up.Another key be
93、st practice is to not hesitate to reduce complexity or adapt the speed of the integration if it benefits the process,a function or the entire new company.As noted by two-thirds of interviewees,it is crucial to account for cultural differences with a slower integration pace in specific areas.While ce
94、rtain topics such as sales,go-to-market strategies and pricing may need to be expedited,a differentiated approach helps to ensure that the integration process respects and blends the diverse cultures involved,leading to a more cohesive and effective organizational environment.MITIGATING RISKS THROUG
95、H A DRESS REHEARSAL ACROSS THE ORGANIZATION ULTIMATELY BEFORE THE TRANSITION OR DAY 1Besides the analytics on cultural aspects and hardwiring the cultural aspects in the integrated business model and TOM,it is important to mention the transition and link to the so-called soft culture work.Not yet wi
96、dely used,but a highly effective option to feel the vibe around the integration in the organizations are regular micro-surveys.With a tailored quarterly,monthly,weekly or daily frequency,they provide an opportunity for employees to raise issues and share their experiences.At the least,acquiring comp
97、anies should consider including the employees of the new joining organization in regular employee satisfaction surveys,paying more attention to differences in submitted responses.This way,the emotional journey of employees can be managed with a significantly higher level of precision.Looking at the
98、entire deal and integration phase,specific cultural shock moments can be anticipated and addressed with strategic precision.These moments are characterized by changes in perceived reality at key milestones,fluctuations in employee motivation for change and the need for buffering strategies.At the ou
99、tset,rumors may spread like wildfire,igniting uncertainty and anxiety among employees about the potential impact of the merger on personal roles and organizational structure.A financial investor expressed it this way:The initial shock of the transactions can be buffered by a proactive communication
100、strategy,addressing rumors and speculations transparently through channels like town hall meetings or Q&A sessions.As the merger progresses,the communication after signing marks a pivotal moment,evoking a mix of emotions ranging from excitement to apprehension.Anger fueled by change-related fears ma
101、y surface,demanding an educational campaign that provides clear and consistent messaging about the benefits and goals of the merger,reassuring employees and fostering a sense of security.The communication of closing brings the mergers officiality,potentially triggering disbelief and a realization of
102、 imminent changes.A corporate investor revealed that this phase may lead to depression and testing,necessitating training and support initiatives to guide employees through the transition and ensure they feel informed and secure.In the first year after closing,ongoing shocks ripple through the organ
103、ization as employees navigate changes,challenges and uncertainties.Acceptance and integration eventually emerge,supported by change management ambassadors who lead integration efforts and provide continuous progress updates.These ambassadors play a crucial role in helping employees adjust to the new
104、 organizational structure,fostering a culture of adaptability and resilience amid transformation.G16 Roland Berger|The cultural symphony in PMIsEmployees experience a range of emotions during a change processmaking it a critical factor to consider during a PMI processShocks from changes in perceived
105、 reality during a mergerSpread of rumorsUncertainty and anxiety due to speculations about the potential impact of a merger on roles and organizational values and beliefsSigning announcementMix of emotions,including excitement and apprehension,as employees come to terms with the reality of the merger
106、TOM detailingLack of employee involvement in the blueprint detailing leads to feelings of exclusion and insecurity,lowering the sense of belonging to the organizationClosing announcementShock of the merger becoming official may lead to a sense of disbelief and a realization that significant changes
107、are imminentFirst year after closingOngoing shocks as employees navigate the various changes,challenges and uncertainties that come with the PMI processPotential strategy to buffer shocksProactive communicationAddressing initial rumors and speculations through transparent communication channels,such
108、 as town hall meetings or Q&A sessionsEducational campaignProviding clear and consistent messaging about the benefits and goals of the merger or acquisition that help employees feel informedEmployee engagementEngage employees actively,foster open communication and create opportunities for meaningful
109、 contribution to initiatives and changesTraining and support initiativesImplementing training,support and feedback programs to help employees cope with the shock of the merger and prepare them for changesChange ambassadorsEstablishing designated change ambassadors to lead the integration efforts aft
110、er closing and provide continuous communicationChange agentsCEO/IMOGrowthAcceptanceTestingFearAngerDenialInitial ShockSource:Roland BergerMeasure cultural heartbeat with our pulse check surveyG Potential cultural shock moments along the integration path,including illustrative examples17 Roland Berge
111、r|The cultural symphony in PMIsFurther readingRecommendationSuccessful cultural integration within the context of an integration process is complex and nuanced and goes beyond mere coexistence of differing corporate cultures.It is an evolutionary journey toward creating a unified,cohesive culture th
112、at embodies the best elements of both merging organizations.It yields an environment where the identity of the newly merged organization is tangible,its mission is clear and its workforce applies a sense of common purpose and belonging.It is when employees not only understand but also live the combi
113、ned entitys values and contribute to the unified cultures evolution that the PMI can be considered successful from a cultural integration perspective.In conclusion,the status of a successful cultural integration can be described as the harmonious blending of two(or more)corporate cultures into a new
114、,vibrant culture that preserves the essence of both precursors while propelling the organization toward growth,innovation and sustained competitive advantage.10 KEY SUCCESS FACTORS IN POST-MERGER INTEGRATION POST-MERGER INTEGRATION TRANSACTION SERVICES18 Roland Berger|The cultural symphony in PMIsAU
115、THORSCONTRIBUTORSDr.Patrick HeinemannSenior Partner +49 160 7447321 Gerald DuarteSenior PartnerRebecca MarciniakPartnerKonstantin PietrekPartnerGiovanni SchelfiPartnerKiyoung SongPartnerWe thank all M&A professionals that contributed to this study as interviewees and/or sparring partners.In addition
116、 we sincerely thank Prof.Dr.Henri Dekker(VU Amsterdam)and Dr.Dieter Smeulders(KU Leuven)for their conceptual input.Dr.Christopher SteinertSenior ConsultantDaniel WachterSenior ConsultantMelissa Figueroa AuthenacConsultantDr.Jrg DelhaesPrincipal+49 160 7446276 09.2024ROLANDBERGER.COMThis publication
117、has been prepared for general guidance only.The reader should not act according to any information provided in this publication without receiving specific professional advice.Roland Berger GmbH shall not be liable for any damages resulting from any use of the information contained in the publication
118、.2024 ROLAND BERGER GMBH.ALL RIGHTS RESERVED.24_2475_REPROLAND BERGER is one of the worlds leading strategy consultancies with a wide-ranging service portfolio for all relevant industries and business functions.Founded in 1967,Roland Berger is headquartered in Munich.Renowned for its expertise in transformation,innovation across all industries and performance improvement,the consultancy has set itself the goal of embedding sustainability in all its projects.Roland Berger revenues stood at more than 1 billion euros in 2023.PublisherRoland Berger GmbHSederanger 180538 MunichGermany+49 89 9230-0