Lately we’ve been talking a lot about mergers and acquisitions. We’ve helped you navigate the River of Integration and walked you through why culture matters in M & As. Next, we’re looking at how companies work and how that affects mergers and acquisitions.
Although it’s possible for companies to get results in a variety of ways, for this purpose, we’ll put companies in two buckets—process orientation and end result orientation.
Process Orientation
If your organization is process-oriented, you’re focused on creating and maintaining the same series of steps every time. The goal is to keep it as consistent as possible regardless of what is happening in the organization to (ideally) get consistent, positive results.
End Result Orientation
In an organization that’s focused on the end result, employees have more freedom to create their own methods and solutions. This orientation relies on employees’ ingenuity to get things done in the way they think is best.
Often, the transition from an end-result orientation to a process-driven orientation can feel corporate, rigid, or restrictive for employees who are used to working on their own terms. In this case, there needs to be education around adapting to the process to get employees on board. Some employees might choose to opt out and leave the company at this stage.
Defining Orientation in M & As
Merging Similar Size Companies
Ideally, when two companies of a comparable size come together, they spend time defining new workflows and collaborating on the creation of a new process. The goal is to find a shared way of doing things and meet in the middle. One downside to this approach, however, is the amount of time it takes. Employees will be asked to create new processes and procedures on top of their day-to-day jobs, and that can feel overwhelming.
Larger Companies Acquiring Smaller Companies
In most cases, when a larger company acquires a much smaller one, the larger company is going to dictate the processes. It’s too overwhelming to change company-wide processes when you’re working in multiple locations, states, or countries.
For the smaller, acquired company, there is an opportunity for training and development. The employees of the smaller company should be offered support and resources for adapting to the new way.
Regardless of whether your business is process-driven or focused on the result, M & As are stressful for leaders and employees. Delve into more of our M & A resources here and reach out if you need more support. The illumyx team has supported companies through many mergers and acquisitions, and we have the tools, insights, and experience to set you up for success.
