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Post Merger Integration

EUCUSA surveys should accompany a post merger integration process to
- communicate effectively with a workforce in turmoil.
- successfully merge different cultures.
- contribute to value creation and measure that value.

PMI is Change Management
A merger transaction is in many cases a complex process that needs special measures to make it successful. The time leading up to a merger, the periods close to the closing of the merger and the integration process after the transaction are often quite stressful for an organization and characterized by uncertainty, information scarcity, rumors and frequently also involuntary layoffs of significant magnitude. In general, it is a period of change and thus needs to be managed very carefully in order to preserve the human assets of the new entity and thus avoid destroying most of the value that was supposed to be created by the merger in the first place.

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EUCUSA has significant expertise in merger situations and stands ready to accompany the process with its special brand of both rigorous and sensitive survey techniques. Our systemic approach (see EUCUSA Methodology) ensures the efficient development of a relevant set of questions to allow the collection of valid data and provide the basis for thorough analysis of strategic aspects across all industries and sectors. At the same time, EUCUSA has always maintained a culture of respect and regard for the individual, and in this tradition we have perfected the survey process to be not only smooth and error free, but also provide repeated opportunity for a high-impact intervention to bolster employee confidence and motivation, increase retention of key personnel and thus keep key customer accounts.

It is evident that all these effects will affect the bottom line directly and thus will provide a significant contribution to value creation.

EUCUSA can develop a prognostic survey in order to gain understanding about the logic, motivation and architecture of a deal. This will help collect critical integration issues to be taken into account, gauge the strategic logic, qualify the spirit of the transaction (from rescue to raid) and determine the modes of acculturation, etc.

When starting the integration process, a “t0” survey can set the standards and benchmarks for the following period, accompanied by consecutive periodic follow-up surveys that will allow management to compare results, monitor progress, react to developments and communicate effectively and respectfully with the associates undergoing the cultural adjustment process.

 
Don’t forget the customers
While intra-company communication is often a challenge in merger situations, it can be equally important to keep the channels open towards the company’s customers. Uncertainty about the counterparty can seriously affect the willingness of prospective customers to trust the new entity as a vendor and even cause existing customer to switch providers.

With the EUCUSA  Strategic Customer Survey  a post-merger company can communicate to its key accounts that it will not only provide continuity but also enhance customer value due to the synergies expected by the merger. The organization will also be able to gather critical information about the presumably new expectations of its vital customers about the quality of the goods and services delivered to them. It is also a great opportunity to bring the new teams interacting with the customers up to speed in order to hit the ground running despite potentially vast organizational changes.

 
Cultural Due Diligence
Corporate culture is often regarded as a “soft” factor in comparison to financial or quantitative operational data. However, there is little doubt that in reality corporate culture has a much stronger long-term impact on value creation than the traditional “hard” measures (that typically provide only a snapshot in time and mainly deal with data from the past).

Cultural due diligence is a powerful tool to gauge a myriad of variables including values, attitudes, willingness to change, communication effectiveness, team cohesion, agreement on priorities, cultural strengths and weaknesses, decision making culture, etc. This data is indispensible input in the formulation of successful integration plans.

According to the specific situation, EUCUSA can create an open survey with dimensions and aspects focused on cultural due diligence issues. If more discretion is advisable, EUCUSA can use other polling techniques, interviews and desk research in order to provide insights and checklists for management and deliver critical information even in a merger evaluation process.