Mergers fail due to people issues

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

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.”

By Mike Broad. Click
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