According to CFO and Fortune Magazines, roughly 75% of mergers and acquisitions are considered “disappointing or outright failures” and only 23% of acquisitions earn their cost of capital. Interestingly, the primary causes of the majority of failures were ‘people problems’ or ‘cultural issues’. After our acquisition, our problem was integrating our executive team. We are a $5B division of a $13B diversified services company. The executive team was spiraling out of control resulting in decreased performance and morale. After spending $250K on coaching, leadership training etc, all to no avail, we called in3 and spent a fraction of that on a culture study. in3’s approach to mapping culture anticipates and resolves integration issues. Examining the results, we understood for the first time why the execs could not work together. We made the job realignments recommended by in3 and the following year won the Chairman’s Award for the best performing division, an achievement the chairman credited to the culture study.
-Business Unit VP of Human Resources