Imagine being able to include Talent Analytics as part of the M&A Due Diligence process. We would be able to analyze how departments are going to react to change, compare the sales team from company A to that of company B, all through Talent Analytics. Through Talent Analytics we can compare Executive teams and see the make up of the new organization before it’s actually established.
I came across an article in ‘All Business’ by Edward A Kazemek: ‘Why Mergers and Acquisitions fail.’ What struck me most about this article is that, although it’s dated, the reasons for failure; poor planning, poor leadership and most importantly ‘cross cultural assimilation’ remain prevalent problems in today’s business cultures. Time hasn’t healed all wounds…
According to Edward A Kazamek “Failure to focus on governance, leadership, and cultural issues before a merger or acquisition is consummated guarantees that serious problems will occur during the implementation phase of the arrangement. And, as the studies suggest, this failure ultimately will cause the entire merger or acquisition to fail” (Kazamek, All Business 1989)
According to Accenture’s findings, not much has changed; only 39% of M&A’s achieve or exceed expectations while the other 61% have varying results.
Rachel Conrad of CNET News reports:
‘Despite the fact that the number of corporate alliances has been increasing by more than 30 percent per year for the last decade, most fail. Andersen’s survey of 323 senior executives showed that 61 percent of alliances are viewed essentially as disappointments or failures. Only 39 percent are seen to have met or exceeded expectations Corporate culture clashes, high rates of management turnover, rank-and-file employee defections, sagging morale and irrational expectations are the main culprits that cause alliances to sour’ (CNET 2000).
Talent Analytics can contribute to the success of M&A’s, especially during the Due Diligence process. Instead of running from the problem, advancements have been made in the field of Talent Management through Talent Analytic Solutions. No longer, do those involved in the M&A process, have to fear one of the largest reason’s that M&A’s fail…’Cultural Assimilation.’
Talent Analytics is a hot topic right now, because of the role it plays in measuring workforce performance, top performers and how to empower and motivate employees to excel. Through Talent Intelligence platforms such as Talent Analytics Corp’s Advisor Platform we can do just that… and more.