When two rivers combine in nature, the current of the new river is often stronger than the sum of the two that merged to make it. Unfortunately, the same is rarely true when companies merge. In fact, 70 percent of business mergers fail to achieve their intended objectives, and problems integrating the two cultures are the commonly cited explanation for why. 

Why is this so often the barrier?

In my experience, leaders frequently assume that the incoming employees will pick things up along the way, adapting to systems and processes that are often opaque and may not even be optimal. There’s also a common belief that if folks were just open-minded and tried harder, everyone would get along. These mindsets can create multiple friction points on both sides, leading to inefficiencies, hard feelings and burnout. They also foster an inward focus that can lead to missed opportunities and vulnerabilities in the marketplace.

I’m often struck by how much time, attention and resources are devoted to getting a deal done and how few are allocated to making it work. Quite often, there’s not enough capacity carved out to enable the newly joined teams to know each other, learn from each other, plan together and ultimately win together.

In my opinion, the key to success rests in The Three Things That Change Everything™: a compelling story, aligned leaders and an intentional roadmap. Despite the best of all intentions, these three things rarely come to be as companies work to get the job done. They require a committed focus — and hence, committed resources. The most successful mergers have dedicated, accountable Transformation Management Offices, or similar cross-functional teams driving the integration and connecting all the dots.

This issue of Mac is all about the challenge of integrating two cultures. It’s an art and a science that people underestimate in the world of M&A. I hope you enjoy the pieces, and that you reach out if we can help. Because while it may not be common to form a culture stronger than the sum of the ones that combined to make it, if you tactfully navigate the human struggle of change, it is possible.