chapter  6
18 Pages

Merging Cultures and the Importance of the Values of the Leadership Group

The main reason for merger disappointment or failure is the lack of an

integration strategy or a failure to appreciate the difficulties of merging

two different cultures. Fusing the formal systems, such as accounts,

payroll, and financial reporting, has its difficulties, but these pale in com-

parison with the problem of integrating cultures. Merging organizations

always employ experts to do a financial due diligence report before the

merger; they almost never do a cultural due diligence report. What the

acquiring organization often fails to recognize is that if the cultures

cannot be integrated, the chances of financial success are minimal.