Politically, the people in the acquired company become “us” determined to defend their business against “them.”
Even if all the rules have been faithfully observed, many acquisitions end up failing or at least take forever before they live up to their expectations. Legally the acquired business is now part of the acquiring company. But politically, the people in the acquired company become “us” determined to defend their business against “them,” the people in the acquiring company. And the people in the acquiring company similarly think and act in terms of “us” against “them.” Sometimes it takes a whole generation before these invisible but impenetrable barriers come down. It is therefore imperative that, within the first few months after the acquisition, a number of people on both sides are promoted to a better job across the lines. This way both sides see the acquisition as a personal opportunity.
The goal is to convince managers in both companies that the merger offers them personal opportunities. This principle applies not only to executives at or near the top, but also to the younger executives and professionals, the people on whose dedication and efforts any business primarily depends. If they see themselves blocked as a result of an acquisition, they will “vote with their feet,” and as a rule they can find new jobs even more easily than displaced top executives.
ACTION POINT: Make sure you promote people in the wake of an acquisition.
The Frontiers of Management
The Successful Acquisition (Corpedia Online Program)
* Source: The Daily Drucker by Peter F. Drucker