Leadership Models for Culture Integration Article Overview

The purpose of a merger is to increase the value of the merging entities into a unified, profitable organization. With the intent of value creation, why it is that approximately 60% of mergers fail to meet financial expectations?

What Will this Article do for Me?

  • Discover why mergers fail within the first year of business
  • Uncover what employees say are important to merger success
  • Learn the models, conditions, competencies, and behaviors to ensure merger success.
  • Take action on how to increase senior leadership’s role in merger success

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Lack of Attention to Culture Creates Unproductive Employees

One of the reasons for merger failure is the lack of attention to culture during the merger process. Senior managers get busy forming organizational processes and systems, defining new roles, and distributing duties and often fail to create a strategy for working with their employees. During this chaotic time, the culture of the organization may be left to emerge on its own. When cultures are unattended, the retention of key talent becomes unsustainable and the level of employee contributions and productivity declines.

Key actions for merger success that may be implemented today:

  • The leader-follower relationship is closer during a merger
  • The level of direction between leader-employee must be increased
  • The leader must have a high level of effective position power
  • Communication channels are driven by face-to-face interaction
  • Celebration of “early wins” are practiced

Leadership Models to Guide Merger Success

This article explores the leadership models that have been conducted by organizational leadership experts on the successful characteristics and components of successful mergers. These leadership models provide a step by step guide for the senior leadership team to enhance their leadership skills and relationships between leaders and followers. Models include Fiedler’s Contingency Model, Vroom and Yetton’s Decision Model, and Burns’ Transformational Leadership Model.

Related:  Servant Leadership Whole Person Inventory

Are you Getting Employees to Buy-In to the New Culture?

Dr. Whitaker’s research results remind leaders that the regularity and method in which the leader involves employees in the newly formed organization’s strategy determines whether or not employees will support the new culture. This means that tasks, responsibilities, and actions needed from employees during the time of culture integration are based on employee buy-in.

The interactions with senior leaders and opportunities for employees to receive guidance and offer their technical expertise are necessary components for employees to commit to the new direction of the forming culture. If interaction and communication from senior leaders are limited, the talents from the best technical experts needed to ensure the organization stays strong, competitive, and profitable will no longer be present. The talented employees will leave, and the average performers will stay.

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Ron Whitaker
Ron is an accomplished entrepreneur involved in developing multiple businesses from the ground up. He is the co-founder of About Leaders, an author, and a start up consultant and investor. Follow him on Twitter and Facebook.