Unleashing the Power of People!

Talent Integration 

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Often when organizations come together to create value, what emerges is unprecedented people and cultural issues resulting in reduced employee engagement and productivity as well as loss of key talent. Unfortunately, the prospect of long-term success of mergers and acquisitions is extremely poor. Consider:

  • Only 5-25% of all mergers and various business combinations live up to expectations while 25-30% are reported to be outright failures with the acquired entity being liquidated at a loss within 3-5 years of the acquisition. The remaining 45-60% results in little or no apparent benefit to the buyer’s shareholders (Emerge International, 2008).
  • Sixty to seventy percent of all mergers fail because of a lack of culture integration (Vector Group, 2009).
  • It’s been estimated that 60-75% of acquisitions fail to meet their strategic and/or financial goals in the expected time frame (Wayne State University, 2009).
Because of this, merger and acquisition activity creates vulnerability for future talent loss. According to recent research, employees of merged or acquired organizations feel less confident about their job security and futures, have less trust in management’s ability to successfully merge the two organizations, and consider leaving the organization at a much higher rate than pre merger/acquisition.

In general, there is a pervasive and negative impact on how employees view their organizations. However, when leadership is viewed as credible and demonstrates a clear and compelling view of the merged/acquired organization's future, and a clear plan of action on how to get there, the opposite is true—employees are much less likely to leave voluntarily.

The Markum Group LLC's services assist leaders and their executive teams throughout the post-merger integration process to reduce the negative impact on employees’ engagement, productivity, and commitment, to engage key talent in positioning, shaping and leading the change effort, to successfully blend and align the two cultures and ultimately ensure the change process maximizes the likelihood of a successful merged/acquired organization.
Contact Onzelo at 832.377.1031 or via e-mail when you are ready to jump start or accelerate your journey towards high performance.