Preparing for Merger: An Art and Science Approach for Organisational Development

Abstract

High failure rates continue to be reported for organizational change projects in general and mergers and acquisitions in particular, with the failures most often attributed to cultural incompatibilities or other people-related issues. The article identifies factors believed to be contributing to this situation, which mean that organisations are often inadequately prepared for the challenges of merger and integration. The Art and Science of Transformation^TM framework developed by Schroeder & Schroeder, Inc. and two related organizational change readiness assessment tools are discussed as a suggested approach for improvement of the prospects for a successful merger. These enable organizations considering a merger to determine their current state of change readiness in terms of art and science skills as well as proven organizational change shaping levers, and identify the cultural and people-related factors that can facilitate or hinder transformation.  In this way, potential risks can be identified and eliminated and key drivers of successful transformation can be strengthened.

Keywords: Mergers, Organizational Transformation, Art and Science