I give you: a successful merger
Why do mergers and acquisitions of companies rarely lead to the predetermined results? According to Professor Roger Martin of the Rotman School of Management at the University of Toronto it is very simple: the participants are often more focused on receiving than on giving.
Interesting in this context is the hypothesis of the American management professor and professor of psychology Adam Grant in his book ‘Giving and taking’. He argues that employees who mainly give, ultimately achieve more than those who only pursue their own advantage.
Merger or integration plans? Roger Martin suggests four areas where partners can benefit each other:
- (Access to) capital
Financing the growth of companies with difficult access to the capital market.
- (Better) management
Support with the implementation of a more efficient organization and / or stronger process discipline. For example, Danaher, which integrates every acquired company according to its 4P Business System: people, plan, process, performance.
- (Transfer of) skills
Transferring capacities, assets or employees. For example: an integrated customer service, the brand communication or the distribution network.
- (Parts of) resources
Share instead of transferring skills, assets or employees.
Every company has its own core qualities. Recognizing this back and forth, valuing business and expanding together is the key to success in every merger and integration process. And … the biggest challenge of both partners
The One Thing You Need to Get Right
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