Most mergers don’t live up to their full potential because senior managers often lack a clear strategy and frequently mismanage the people issues, according to research by Roffey Park.
The research, called Effective Mergers and Acquisitions, claims that people mismanagement during merger leads to the loss of key employees, restructured responsibilities, derailed careers and diminished power.
It claims that merging companies often underestimate the level of integration required and they fail to respond to the cultural issues which arise.
Report author Valerie Garro said, “Eighty per cent of changes occur in the first three months after a merger. Employees seek to interpret the signs of new appointments and allocation of offices as well as plans for closure and relocation.
“HR teams often find themselves in the front line having to meet commitments that they’ve not been party to making, while being uncertain about their jobs.”