Global Strategic Management Solutions, Inc.

Dr. Doreen McGunagle | 866.417.2415 | www.globalstrategicmgmt.com Page 1

ORGANIZATIONAL CULTURE PLAYS

ROLE IN SUCCESS OF MERGER

Tags: organizational culture, change management, transformational leadership, merger & acquisition

Global Strategic Management Solutions, Inc.

Dr. Doreen McGunagle | 866.417.2415 | www.globalstrategicmgmt.com Page 2

In a Merger and Acquisition (M&A), the leaders’ responsibilities include

developing a complete understanding of the organizational culture is one of

the key elements that promote cooperation between the merging firms. The

cooperation between organizations is necessary to increase the likelihood of

postmerger success for the firm. Learn more by downloading our

whitepaper, Improving Bottom-line by changing culture.

Kanungo author of Ethical values of transactional and transformational

leaders discuses that the transformational leadership process allows the

followers’ capacity for self-determination to increase while pursuing the

purpose embodied by the leaders’ vision for the organization.

Despite a steady increase in the number of M&As, researchers show that 90

percent do not achieve their desired goals. Their failures can be caused

from inadequate integration planning, lack of communication, cultural

mismatch, or poor strategic match. The strategic objective is normally

known but the redefining of the new culture is often overlooked.

To be successful, there is a need for managers to focus on the post merger

integration issues that create a synergy within the newly formed

organization. There are several cultural assessments available that can be

used to ensure a better understanding of the gaps within the new culture.

Global Strategic Management Solutions, Inc.

Dr. Doreen McGunagle | 866.417.2415 | www.globalstrategicmgmt.com Page 3

Training programs can teach transformational leadership methods and

create an organizational culturethat promotes cooperation between the

merging firms. A culture of empowerment focuses on questioning the how

and why things are done, and the managers constantly refine best practices

and take risks.

The correct culture increases the chance for success as defined by the

original intent of the M&A. Transformational leadership methods have been

associated with employee satisfaction, reduced turnover, organizational

commitment, and overall employee performance.

To ensure success of your merger download a copy of our whitepaper,

Improving Bottom-line by changing culture.