It is not the same concept of synergy. When we talk about alliances through mergers and business purchases, in addition to financial issues, we must consider the differences between cultures and identities to avoid surprises. It is normal for executives to focus their attention on financial issues, leaving aside psychological aspects of the process. Traditional mergers indicate that the sum of 1 + 1 = 2, seeking a company financially greater than the sum of its parts. Today the "new synergy" is made up of: economic synergy and psychological synergy; consequently, the question is, how to achieve a single identity?
One point not to confuse when trying to combine operations is Identity with Culture. The merger of companies "bankruptcies" identities, policies change, organizational values are not the same, fear is generated, doubts arise as to the identity of the new combination. The integration will be successful if the collaborators of the new company feel that they belong, identify themselves and are motivated to generate positive contributions.
An interesting scenario is when two companies that plan to merge have been direct competitors for years. Another scenario is when two companies long targeted two different customer segments, with different services, with different strategies and structures. " In both scenarios, waiting for workers at both companies to suddenly become great collaborators is to force the situation."
Another common mistake is to confuse the brand, or the company logo, with your identity. Using the name of the acquired company to baptize the new one and maintaining the professional team of the acquiring company, is to maintain the identity of the latter. Executives worry about selling the merger to external stakeholders and forget about the internal front, starting problems for leaders who begin to send confusing signals about identity integration. The communications plan must be consistent and the implications on all fronts must be considered.
What can we do? What strategy could we define?
- Assimilate: this is only possible when one company is completely absorbed by the operations and identity of another.
- Preserve: when both companies maintain their identities, names, management structure and decision-making with autonomy. (Nissan and Renault)
- Expand: when the merged companies retain their identities, but also develop a wide space where both can prosper.
- Create: when both companies dissolve the previous identity and create a new identity that did not exist before the merger.
Senior management must understand the above approaches and define the strategy to be followed on the basis of knowing their partner strategically and operationally.
Maintaining differentiated brands or brands, this decision comes in a second stage.
