Lessons from a Merger: A Strategic View from the Merger Frontline.

During my participation in a merger, I identified several enhancement opportunities that could have facilitated a more effective and streamlined process.

Surviving a Merger with Purpose.

The decision to merge should not be taken lightly. Both organizations should recognize the overlapping mission, complementary strengths, and shared long-term goals. The idea is not to dismantle or dilute either organization but to unify their efforts and streamline processes and operations. As someone directly involved, I witnessed firsthand how delicate the balancing act was between honoring existing cultures and building something new.

Several factors should be considered when establishing a new entity combining two organizations or programs.

Setting the new organization up for success requires appointing a leader who demonstrates professionalism, proven experience, vision, and the capacity to assume leadership responsibilities. It is essential to select an individual capable of providing mature guidance and maintaining objectivity, ensuring that personal sentiments or biases do not affect the program's objectives, mission, or vision.

Some mergers resemble acquisitions. This may manifest in one organization absorbing the other through more controlling and one-sided processes.

Leadership selection, establishing clear governance structures and communication channels from the outset, can help prevent confusion and misaligned expectations. Integrating policies, processes, and cultural values fosters unity and shared purpose. Transparent dialogue with staff builds trust and eases the transition, reducing resistance and uncertainty as the organizations move forward as one.

Hiring a consultant with relevant experience in the specific field of the new organization is crucial. For example, choosing someone with only a commercial business background to promote a healthcare or social service organization may not produce the best results.

Integration of Teams

The leadership teams from the respective organizations or programs should be introduced before the merger is finalized.

A key factor in the success of any merger is the effective integration of staff members. People who once operated independently must now collaborate across former organizational boundaries, sharing their expertise, experience, skills, practices, and knowledge within a unified space. This integration involves implementing new workflows, procedures, and relationships. Effective integration requires a clear understanding of the new mission and vision, cultivating mutual respect among team members, and aligning with the organization's overarching objectives.

Challenges to look out for

Mergers are not without their growing pains. These are some of the challenges that can resurface.

• Conflicting management styles or unclear leadership roles can create confusion.

• Power struggles may emerge if roles aren't clearly defined in the new entity.

• Decision-making can stall without unified direction. An ambivalent Leader can create discord and staff division if unable to make critical decisions.

• Fear of job loss, role changes, or uncertainty can lead to disengagement. Ultimately, this causes the organization's productivity to suffer.

• High-performing staff might leave if they feel undervalued or uncertain about their future. Those who stay could become confused and start competing against each other. 

• Rushing through financial, legal, or operational reviews can lead to costly surprises. This will hurt future financial decisions and affect the program's operation, including staff.

• Hidden liabilities or incompatible systems will surface post-merger, creating internal chaos and disruption of staff and services.

• A governing body lacking merger experience should engage an experienced consultant to prevent avoidable pitfalls and make informed decisions.

• Integration can be derailed if the merging entities have different goals or priorities.

• Lack of a shared vision may confuse the staff and dilute impact.

• Leaders may expect immediate results without accounting for transition time.

• Something that we may consider simple - not having the proper equipment to conduct daily operations, such as computers, cell phones, software, and Wi-Fi, can be discouraging, impact productivity, and affect employee morale.

"All mistakes teach us something, so there are, in reality, no mistakes, Just things we learn." – Professor, Nikki Giovanni

Lessons in Transition

• Establishing cross-program task forces to address operational overlaps. This helps streamline workflows, responsibilities, and ensures that resources are utilized effectively.

• Hosting regular listening sessions to discuss concerns and celebrate wins openly.

• Creating joint training sessions to familiarize staff with each other's approaches.

• Having a leader who will frame the merger not as a disruption but as an evolution and truly believes in it is crucial!

  
  

If your organization is evaluating a potential merger or acquisition, I am available to help guide you through the key considerations necessary for a successful process.

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