Javier Evans is the Chief Human Resources Officer of Webster Bank, a leading commercial bank in the Northeast.
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In mergers and acquisitions, a seamless transition to a combined company is the ultimate goal. While executives need to be focused on many of the critical facets of a merger—a combined technology platform, retaining talent, client needs and meeting shareholder expectations—they shouldn't lose sight of the backbone of the company, their culture. According to McKinsey, synergy efforts improve by about half if culture is a well-managed priority. So, it's clear that the underpinning of how stakeholders view a merger’s success begins with a strong, resilient culture.
The Keys To A Successful Post-Merger Culture
During a merger, it’s important to weave together the best of each entity and mold a culture that's organic and authentic. The management teams must work together to align the new organization’s culture with a common language and guiding behaviors that reflect their collaborative visions and missions.
Based on our recent experience at Webster Bank of bringing together two leading regional banks, here is a set of guiding principles to create an even higher-performing, more agile and innovative company during a merger.
Focus On Culture At The Outset
Culture is the foundation for uniting two unique workforces, so fostering it should begin during the integration phase. Historically, the norm has been for one company’s culture to prevail, but best practice is to develop a new integrated set of values to act as the combined company’s guiding principles. Developing and aligning core values is critical in helping all colleagues navigate the behaviors and expectations.
Leadership must decide how to become a combined entity with a singular approach to cultural norms. Allowing the combining entities to retain important aspects of their workplace cultures while embracing new qualities that make the new organization stronger and more cohesive is critical for success.
Have Executive Leadership's Support
Culture concepts need to be infused early, starting with the buy-in and support of the executive leadership team and modeled throughout the organization. Respecting and heeding culture needs to be a top priority for everyone.
Celebrate The Nuances
Even as merging entities form their unique environment, their legacy cultures can't be dismissed. History has meaning to colleagues, and pride in accomplishments represents more than nostalgia. It’s human nature to cling to and miss the past, even as our worlds evolve. That's why it's important to share and discuss how each entity's stories will be preserved and blended while you create a new vision of the future.
Get to know the nuances of each company’s legacy culture with deep-dive discussions with colleagues from all levels across the organization. This will help highlight and emphasize similarities. Harmonization is critical, with an eye for empathy, respect and sensitivity to the cultures of each team.
Get Your Culture Messaging Right
Once executives agree on the new company's narrative, it's important to strengthen it with messaging that resonates with everyone. Here are some strategies for making sure you use words that matter.
• Be Clear And Concise: Brief, to-the-point communications are paramount to implementing a “One Company, One Culture” philosophy across the organization. This ensures employees can digest the message quickly and easily.
• Conduct Culture Trainings: A comprehensive, immersive training program can help facilitate the transformation and align colleagues on the new organization's common purpose and values. This will generate a sense of inclusivity and belonging.
• Join Together: Create opportunities to bring people together. Don't underestimate the power of in-person culture assimilation meetings. Bringing people together pleases those excited by change, reassures those who are resistant and can be an incredible tool for understanding new co-workers.
• Prepare For Pushback: Not all employees will buy into the new culture, and that’s okay. Knowing how to handle these differences is what will differentiate a successful culture from a failed one.
• Get Feedback: Measuring the impact of this new culture shift through follow-up surveys can provide meaningful insights. For example, you can determine whether your messaging and actions are creating understanding of the company’s new values, desired culture and behaviors. Continue to monitor for informal feedback and adapt as the company evolves.
Culture is core to a successful organization. Developing and sustaining a program where employees actively embrace core values and culture will ensure an engaged workforce, stronger performance and future growth and prosperity.
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