Making Mergers Work Harvard Case Solution & Analysis

Post-merger integration planning typically focuses on operational issues, such as the harmonization of production lines and the financial and human systems, information resources, and to determine which employees retained and which of them were released. Attention is also paid to the person of the combined entity in a superficial sense. The buyer's name can be saved, or the new logo can be created or a new name found. But for organizations to achieve the psychological interaction needed to implement economic synergies from mergers and acquisitions, the authors argue that managers need to pay attention to more complex, deeper to identify the issues. These questions define the essence of the person and give employees a clear answer to the question: "Who are we?" And external stakeholders a clear answer to the question: "Who are they?" The first refers to members'view organization that makes it unique among all other organizations. The second question reflects the fact that the external auditor believes the essence of the organization. Left unattended, these profound questions of identity will decrease participation and inevitably affect the performance of the combined organization. Operational integration of the merger is a necessary but not sufficient condition for successful performance. Careful attention to the integration of the individual is also important for success. The authors argue that there is no "best way", and that in fact there are four different ways that can be followed to achieve the integration of identity: assimilation, federations, confederations and metamorphosis. Each of these paths is a combination of answers to two questions that managers must face in anticipation of a merger or acquisition, what should be done with identities that the parties to the merger brings with it (in other words, their historical identity?) And as a common identity for the future to be built? "Hide
by Hamid Bouchikhi, John R Kimberly Source: MIT Sloan Management Review 8 pages. Publication Date: October 1, 2012. Prod. #: SMR434-PDF-ENG

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