The human capital value of merging teams
As business transactions are increasingly happening across regions, culture and segments, there is an increasing need to assess and manage different organizations in a standardized way. Before a merger takes place, there is a need to assess the value of human capital and to assess the cultural fit. If the fit is not there, loads of effort and capital may be waisted. To be able to predict the cultural gaps and strengths allow better pricing estimates and planned processes.
After a merger, there is a need to integrate. 70% of all mergers fail because people are not able to work together, no matter how rational and data-driven the decision to merge was. In order to capture the “prize” from the merger, organizational alignment, collaboration and effectiveness is required.
Cultural identities from the two previous units will clarify what their original identity was. The collective culture map identifies what they have in common, and will need to build the merged company on. The necessary cross-functional integration processes and personal values maps will be available on design and could effectively support integration.