SUCCESSFUL MERGERS AND ACQUISITIONS HARMONIZE BRAND STATEGIES AND CORPORATE CULTURES

SUPPORTING THE BRAND PROMISE WITH CULTURAL ALIGNMENT

Corporate mergers present complex challenges.  Most issues get resolved before final deals are closed.  Operating, financial, and HR policy issues typically receive the lion’s share of pre-deal attention. Unfortunately, two essential elements often go unattended.   . 

By LSI publisher Art McNeil

This behavior presents a conundrum because successful mergers in today’s rapidly changing world should be based on the potential of future value rather than performance history

Critical “future value” determinants are;  

A.  Brand power (will consumers be able to easily locate the new entity and will they buy into integrated brand promises?)  

The development of a brand strategy during major change is best served by engaging the tutelage of an accomplished and unbiased branding specialists—preferably one who believes in the development of  client self-sufficiency.

7 Essential Brand questions: how will consumers locate and differentiate the new entity’s products and services?

1. Has either organization promoted brand promises?
2. Will the products overlap?
3. Are there unrelated product/service categories?
4. Will there be complementary product/service categories?
5. Is the intent to maintain separate brands?
6. Have certain brands achieved high positive (or negative) target market awareness?
7.  Is the desire to make a deal based on brand value?

 B.   Corporate culture (the collective habits used by a group of people to get things done—can  expectations, attitudes, and behavioral habits be harmonized?)

Mergers unfreeze organizations—everything will be up in the air.  Initially productivity will be disrupted but when  handled properly, the turbulence will be an asset.  An organization development guru, The late Dr. Ron Lippitt said “new orders are borne of chaos”.  Successful merged entities consider themselves a “new order”.  Left unattended competing habits, attitudes, and processes will create prolonged dysfunction.  Unlike branding integration, the harmonization of culture must be championed by the CEO—coached by an experienced external resource who believes in developing client self sufficiency.   

7 Essential Culture Questions:

1. Have the cultural values of each organization been clarified?
2. Do employees at all levels in either of the organizations know and buy into the cultural values?
3. Have visions of the preferred future been discussed?
4. Has an ethics platform been documented and is it reinforced?
5. Is an employee centered continuous improvement system in place?
6. What kind of employee development is provided?
7. Are there established supervisory protocols for:

• Meetings
• Coaching
• Performance redirection
• Performance evaluation
• On-boarding new hires

Conclusion:

An accomplished brand strategy consultancy that  knows how to bridge the brand/culture gap (by helping organizations realign culture to support their  brand promise) is the ultimate  choice for mergers, acquisitions, or any corporate repositioning.