Why Values Matter Now More Than Ever

Caroline Samne • February 12, 2025

Comfort can be found in the values we espouse.

When we talk about living in a VUCA (Volatile, Unpredictable, Complex and Ambiguous) world, this pandemic is an unfortunate example of this concept. Until we are faced with events that throw us for a double loop, it is easy to think of VUCA as a concept that only applies in theory.


Instead, we find ourselves in a rapidly evolving situation which requires us to act and adapt quickly. It is only normal to be experiencing emotions that are both scary and intense. It is easy to get swept up in the negative emotions that are prevailing at this time. It is also all too easy to give into our individualistic and opportunistic impulses; just think of the ads we are seeing on Amazon for items like hand sanitizer and toilet paper listed for up to 50x their retail value.


So what does all of this mean to us as humans, as leaders and as people who work in organizations? This is a time of many possibilities and moments of reflection. Amongst the many stories that sometimes have shocked me (and not in a positive manner), I have also been very pleasantly surprised to hear things such as, 


"in the interest of doing what is right and upholding our core values I regretfully announce a 60 day pause of our Princess global ship operations"
Jan Swartz, President of Princess Cruises.


Although the cruise industry has for the most part announced a 30-day halt, Princess Cruises has decided on a 60-day pause, as it appears that they have seen that their crew and staff are extremely tired. As referenced in Swartz’s , one ship's Captain referred to his crew as gladiators and, as Swartz notes, even gladiators need some rest.


We are also seeing companies such as Apple, Patagonia, Urban Outfitters and others shutting down stores and in some cases even their websites in order to put their people and customers' health before profit. Although these decisions cannot be easy ones to make, they are most likely founded on some strongly defined and concretely lived values.


In 1981, Steve Jobs outlined the core values that define Apple, one of these being, 'We are here to make a positive difference in society, as well as make a profit.' Although there may be some slight shift in the values, their true essence seems to remain under Tim Cook, CEO.


Why is it so critical for an organization to be able to not only state their core values but actually live them on a day-to-day basis? Values are not strictly pretty words to be displayed on a wall or website; they are the principles that shape and inform our culture, which then becomes our guide when decisions need to be made. Our values allow us to decide which behaviours are ok and which are not, and signals to everyone within the organization what we most believe to be true. For example, if we look more carefully at the value of 'We are here to make a positive difference in society, as well as make a profit,' it would make for an easy decision to close stores in light of the Covid-19 pandemic, as this would be doing something positive for society (in terms of protecting the health of clients and employees) regardless of profit.


Organizations who do not have clearly defined and lived values will find it much more challenging to make large and emotionally charged decisions as the guideposts are not there. Trying to make decisions in times of stress is already a challenge. When you do not have a clear roadmap and anchors, this can cause even more stress and disagreement within a leadership team, as alignment to principles and codes of conduct may be lacking.


When people ask us why they need values, we ask them to reflect on a recent difficult decision that they had to make or scenario that they were in and to explain how they went about solving it. We recently had a client recount a story of what seemed to be a cycle of 'wrong hires' and how this was costing them both emotionally and financially. When we asked more questions to try and unpack the situation, it became clear to them that they had been hiring based on skills and competencies and yet were not checking for fit at the level of values. Often, we hear clients speak about finding people who are cultural fits. What does this mean? How do you know if someone fits your culture if you are not even clear on who you are and the values that you espouse?


Although most of us may intuitively know what we personally value, it is critical to have clear and honest conversations as teams and within organizations so as to align on what we collectively value.


The moral of the story is that, as we move through this global pandemic, we must operate from our values and not from our fear. My wish for all of you is that you are clear on what those values are and that we trust that all of our colleagues espouse and live our shared values.


Knowing that we align on what we value and how to behave brings a huge sense of comfort in times that are stressful and filled with anxiety. When we operate from a place of trust and clear agreements, it will make the transition back to 'normal' a much easier one.


What if you are not clear on your team and/or organizational values? What happens if you are starting to see 'stress fractures' within your team? Is it too late if we don't already have clear values enunciated? I do not think it is too late. I believe that it is never too late to bring people together and host a values conversation. It can start by asking people to think about their own personal values and how they show up in our lives. Just in the exercise of sharing our personal values a sense of connection and unity within a team is created.


Even though you may not go through a full exercise of developing and elaborating on your organizational values at this time, you can certainly sow some seeds by hosting conversations about personal values and how each person is using them at this moment in time. This will minimally create a stronger connection amongst your team members and further weave the fabric of trust.


In the meanwhile, we encourage you to connect through whatever means possible to ensure that we do not lose human contact even if we are practising social distancing. Stay safe and breathe!


About the Author:
Caroline is passionate about equipping leaders with the skills they need to foster a human, change-enabled culture within their organization. She is driven by a vision where all workplaces encourage people to thrive and become their best selves.

As a facilitator and agent of change, Caroline designs, develops and implements change strategies that are successful the first time around. Caroline believes that successful change in organizations is largely based on the ability to understand the human and organizational dynamics that encompass the organization. Being able to adapt and thrive in times of change is no longer an option but a key need in today's world. Organizational Success is built on agility and the ability to stay ahead of the crowd. In order to be nimble organizations must embrace change and do so in proactive ways.

Caroline holds a BA in Psychology and a Master's in Human Systems Intervention. She has been working in the field of community and organizational development since 1991. Her work has included large-scale change interventions, group facilitation, change management, strategic planning, group development, team building and evaluation process development. Caroline has worked in the Public, Para-public, Private and Community-based sectors. In 2002, Caroline started teaching part-time at Concordia University in the Faculty of Applied Human Sciences. Caroline has trained with Merrelyn Emery (Search Conferences), Edie Seashore (Use of self as an agent of change and Communication and Feedback), Gervase Busch (Appreciative Inquiry), Diana Whitney (Appreciative Inquiry), Kathy Dannemiller (Whole-Scale change), among others.

By Caroline Samne October 6, 2025
Résumé exécutif Nous avons déjà exploré les coûts invisibles des F&A — les chocs culturels et l’exode déchirant des talents. Maintenant, soyons concrets. Cet article ramène la conversation à l’essentiel avec des histoires vécues dans d’autres petites et moyennes entreprises, montrant où ça a mal tourné et, plus important encore, où la priorité donnée aux gens a mené à des succès incroyables. Vous découvrirez aussi votre rôle unique et indispensable comme fondateur·trice-vendeur·se dans cette transition. Vous n’êtes pas seulement une signature au bas d’un contrat; vous êtes le pont crucial, le champion, dont la présence et l’engagement sont essentiels pour protéger votre héritage, sauvegarder votre équipe loyale et sécuriser votre complément de prix financier. Dans nos articles précédents, nous avons fait face à des réalités difficiles, n’est-ce pas? Nous avons exploré l’impact profond des chocs culturels sur l’identité de votre entreprise et la peine silencieuse de voir des employés loyaux et un savoir-faire inestimable partir. Vous avez ressenti ce couteau imaginaire en plein cœur, en voyant Susan tendue ou en entendant la déception amère de Tom. Devant un tel événement de vie, vendre votre entreprise — il est facile de se sentir dépassé. Mais voici où l’histoire bascule. Ces défis ne sont pas insurmontables! Si l’attrait initial des F&A repose souvent sur les synergies financières et l’expansion de marché, les faits démontrent que leur réussite repose surtout sur la gestion et l’intégration efficaces de l’humain. Les taux d’échec élevés, souvent causés par les chocs culturels et les enjeux liés aux personnes, prouvent que le “soft” le capital humain est en réalité le facteur « dur » qui détermine la création de valeur à long terme. Investir dans la diligence culturelle, la communication transparente, et la rétention des talents et du savoir-faire n’est donc pas une fonction RH “nice-to-have”, mais bien un moteur direct et mesurable de création de valeur, un véritable avantage concurrentiel. C’est prendre les moyens proactifs pour que votre entreprise, votre œuvre de vie continue de briller dans son prochain chapitre. I. Leçons du terrain : histoires de PME, succès et écueil On connaît tous les exemples de grandes entreprises, comme Daimler-Benz et Chrysler. C’est parlant, oui, mais allons voir plus près de nous: les histoires de PME. Parce que même si l’échelle est différente, les défis humains sont tout aussi réels et souvent, encore plus personnels. Les taux d’échec des F&A sont alarmants : entre 70 % et 90 % [1–7]. Et les différences culturelles sont systématiquement citées comme la cause principale [3, 8]. Voyons quelques exemples concrets, certains où ça a mal tourné, d’autres où la priorité donnée aux gens a tout changé. Récits de mise en garde: quand on néglige les gens La compagnie de CVC — un choc culturel et un exode de talents (une mise en garde) Un grand joueur du CVC a acquis une petite entreprise réputée pour son ambiance familiale et décontractée [9]. L’acquéreur, lui, fonctionnait selon une structure plus formelle et hiérarchique [9]. Plutôt que de chercher à comprendre cette culture, il a imposé la sienne de plein fouet. Résultat? Départ massif des employés-clés [9]. Avec eux sont partis le savoir tacite, l’expertise opérationnelle et les relations-client essentielles, souvent bâties sur la confiance personnelle [9]. Cette perte de capital humain a saboté les bénéfices attendus de l’acquisition [10, 9]. Une preuve claire que l’élément humain "mou" a des conséquences très "dures" sur les résultats financiers. La startup techno — fatigue d’intégration et chaos de leadership (un bilan mitigé) Une grande entreprise, « Compagnie A », a acquis une petite startup, "Compagnie B", pour tirer profit de ses innovations [11]. La culture de B était agile, rapide, peu formelle, un contraste avec A. Mais surtout, un énorme déficit de communication a miné l’intégration. Des employés de A ont reçu des invitations à une « intégration nouveaux employés » sans explication préalable [11]. Les leaders de B ont traité ceux de A comme des subalternes, imposant même des "règles molles" comme la caméra obligatoire en réunion [11]. Résistance immédiate. La direction d’A, déconnectée, se concentrait sur des "grandes annonces" sans comprendre la réalité quotidienne [11]. L’intégration avançait à pas de tortue, les revenus attendus ne suivaient pas, la frustration montait et les talents risquaient de partir [11]. L’innovation recherchée s’est vue étouffée par un sentiment de supériorité de l’acquéreur [12]. Le cabinet dentaire — passif caché et effondrement de la confiance (une leçon douloureuse) Un dentiste a acheté un cabinet existant [13]. Le vendeur avait gonflé les chiffres de production et accordé des augmentations massives à ses employés… la veille de la vente [13]. Malgré des comptables en due diligence, ces passifs financiers sont passés inaperçus [13]. Pire, le vendeur a miné l’acquisition après la clôture : il n’a pas remboursé des crédits-patients et a référé des clients à un concurrent [13]. Le repreneur a subi des pertes majeures, crédits non remboursés, salaires gonflés, chute de clientèle, menant à des batailles légales et à une perte de réputation [13]. Dans les PME, où les pratiques informelles abondent, la due diligence spécialisée est essentielle. Vignettes de succès: quand les gens passent en premier Les agences marketing fusionnées Deux agences — l’une créative et libre, l’autre analytique et méthodique — ont décidé de fusionner. Avant même la transaction, des ateliers culturels ont réuni les équipes pour discuter des façons de travailler et définir leurs "non-négociables" [14, 15]. Ensemble, ils ont créé une nouvelle culture qui combinait rigueur analytique et créativité. Résultat: forte rétention des talents, sentiment d’appartenance et une offre de service unique qui a propulsé leur part de marché [16]. L’entreprise manufacturière familiale Une entreprise familiale acquise par une firme de capital-investissement a choisi une approche « people first ». À la demande du fondateur, l’acquéreur a instauré des assemblées publiques transparentes où les employés pouvaient poser leurs questions [14, 17]. Un programme de mentorat a permis aux anciens de transmettre leur savoir tacite aux nouveaux et même à l’acquéreur [18, 19]. Des parcours de carrière clairs ont été offerts. Résultat : transition fluide, peu de pertes de talents et maintien de la réputation de qualité, directement lié à l’atteinte des cibles post-acquisition [20]. La fusion de deux firmes TI Une firme agile et horizontale et une autre plus hiérarchique ont décidé de fusionner. Pour prévenir les frictions, elles ont créé une équipe d’intégration composée de membres des deux organisations [21]. Cette équipe a aligné les outils de communication, les processus décisionnels et les politiques de conciliation travail-vie. Grâce à des boucles de rétroaction, les irritants étaient réglés rapidement [21, 22]. Les employés se sont sentis impliqués, ce qui a favorisé l’adhésion. La fusion a atteint ses objectifs stratégiques et est devenue un modèle d’expérience employé positive, attirant même de nouveaux talents [21, 22]. Ces exemples démontrent qu’avec une approche humaine, les F&A peuvent non seulement réussir, mais créer une valeur durable, protéger votre héritage et sécuriser votre complément de prix . II. Votre rôle : fondateur·trice, pont et champion Cette transaction est un moment charnière dans votre vie. Vous n’êtes pas spectateur : vous êtes une pièce maîtresse, le pont entre l’ancien et le nouveau. Votre rôle est vital: La voix de confiance : vos employés vous font confiance à vous, avant tout [23]. Votre communication honnête et empathique sur le "pourquoi" et votre foi en leur avenir sont essentielles [21, 24]. Le champion de la nouvelle culture : vous avez cultivé votre culture comme un jardin. Vous pouvez maintenant aider à bâtir la culture commune, montrer l’exemple et démontrer que le meilleur de votre ADN survivra [25, 26]. Le traducteur entre l’ancien et le nouveau : vous comprenez les règles implicites, les subtilités, le "petit secret" qui faisait votre succès [14, 12]. Vous pouvez aider l’acquéreur à comprendre votre valeur et vos employés à s’adapter [21, 22]. L’avocat de vos gens : vous demeurez leur défenseur. En travaillant avec la nouvelle direction, vous pouvez faire entendre leurs préoccupations et protéger leur développement [21, 24]. Votre implication active, surtout dans la phase d’intégration, est déterminante pour retenir vos talents-clés et sécuriser votre complément de prix . Votre présence dit haut et fort: "Je suis encore là, je tiens à vous, et on va réussir cette transition ensemble." Nous l’avons vu: l’humain n’est pas du « soft stuff ». C’est le fondement même d’une F&A réussie, surtout dans les PME. Dans notre dernier article, nous vous donnerons des stratégies concrètes pour travailler main dans la main avec vos autres conseillers, bâtir une organisation résiliente et voir la transformation positive de votre entreprise se déployer. Prochaines étapes Si vous pensez à vendre ou fusionner votre entreprise, et que vous êtes préoccupé par votre héritage, vos gens et votre complément de prix , venez en discuter avec nous. Contactez-nous chez The Pillars dès aujourd’hui. (514) 505-3067 info@ThePillars.ca Sources Citées "The M&A Failure Trap Newsweek," https://d.newsweek.com/en/file/476980/study-m-failure-trap.pdf "Seamless M&A Integration: Strategies for Success," https://www.kpintegrators.com/blog/ma-integration-strategies-for-success/ "Tech M&A Failure Rates and Why Deals Fall Apart [Data Report] - WinSavvy," , https://www.winsavvy.com/tech-ma-failure-rates-and-why-deals-fall-apart-data-report/ "Why Mergers and Acquisitions Often Go Wrong - Dental Diversity and Inclusion Alliance," https://dentaldiversityandinclusionalliance.com/why-mergers-and-acquisitions-often-go-wrong/ "A Study of Cultural Integration in Corporate Merger and Expansion - Clausius Scientific Press," https://clausiuspress.com/assets/default/article/2024/12/24/article_1735029354.pdf "10 reasons why acquisitions fail post-close - Northwest Indiana Business Magazine," https://nwindianabusiness.com/industries/professional-services/professional-legal-advice/10-reasons-why-acquisitions-fail-post-close/59996/ "Navigating SMB Mergers: Protecting Your Legacy, Your People, and Your Earn-Out" (uploaded file) "Cultural issues in M&A — Financier Worldwide," https://www.financierworldwide.com/cultural-issues-in-ma "Merging Cultures after Acquisition - Merger Integration," https://www.mergerintegration.com/merging-cultures-after-an-acquisition "M&A cultural integration: Best practices for a successful merger - Preply," https://preply.com/en/blog/b2b-ma-cultural-integration/ "Has anyone's company gone through a dramatic and sudden culture ..., https://www.reddit.com/r/ExperiencedDevs/comments/1ctisun/has_anyones_company_gone_through_a_dramatic_and/ "The Anatomy Of An Acquisition Failure: Why They Often Fail To Create Value," https://alejandrocremades.com/the-anatomy-of-an-acquisition-failure-why-they-often-fail-to-create-value/ "Stories of dental office purchase gone wrong : r/Dentistry - Reddit," https://www.reddit.com/r/Dentistry/comments/1945ivh/stories_of_dental_office_purchase_gone_wrong/ "The Dos and Don'ts of Cultural Integration in Mergers and Acquisitions," https://www.bashpaplaw.com/resources/blog/the-dos-and-donts-of-cultural-integration-in-mer "Culture clash: Transforming M&A into a people-first triumph - HR Economic Times," https://hr.economictimes.indiatimes.com/news/workplace-4-0/talent-management/culture-clash-transforming-ma-into-a-people-first-triumph/118539038 "Cracking the SMB playbook: Scaling through the leaky bucket," https://www.scalevp.com/insights/cracking-the-smb-playbook-scaling-through-the-leaky-bucket/ "The True Costs of Employee Turnover - Kreischer Miller," https://www.kmco.com/insights/the-true-costs-of-high-employee-turnover/ "Knowledge Management 101: Preventing a Knowledge Loss Crisis in 6 Steps - EDSI," https://www.edsi.com/blog/knowledge-management-101-preventing-a-knowledge-loss-crisis-in-6-steps "(PDF) The Dynamics of Knowledge Transfer in Mergers and ...," https://www.researchgate.net/publication/323695000_The_Dynamics_of_Knowledge_Transfer_in_Mergers_and_Acquisitions "Employee Retention After Acquisition: 6 Strategies for Success," https://mnacommunity.com/insights/employee-retention-after-acquisition/ "M&A Impact on People and Culture - Travelers Insurance," https://www.travelers.com/resources/business-topics/business-risk/mergers-and-acquisitions-people-culture "Keeping Your Teams Engaged During Mergers and Acquisitions," https://www.pioneermanagementconsulting.com/insights/keeping-teams-engaged-during-mergers-acquisitions "How to Retain Employees After a Merger or Acquisition - Sparkbay," https://sparkbay.com/en/culture-blog/retain-employees-merger-acquisition-44 "What Happens to Employees During Mergers and Acquisitions?," https://smitheylaw.com/what-happensto-employees-during-mergers-and-acquisitions/ "Cultural Strategies in M&As: Investigating Ten Case Studies - Digital ...," https://digitalcommons.kennesaw.edu/cgi/viewcontent.cgi?article=1031&context=jee "The importance of cultural integration in M&A: The path to success - McKinsey," https://www.mckinsey.com/industries/oil-and-gas/our-insights/the-importance-of-cultural-integration-in-m-and-a-the-path-to-success
By Caroline Samne September 15, 2025
Résumé exécutif Vendre l’entreprise dans laquelle vous avez mis votre cœur et votre vie, ce n’est pas qu’une transaction. C’est protéger un héritage et les gens qui vous ont aidé à le bâtir. Vous avez sans doute déjà entendu ces statistiques inquiétantes sur l’échec des transactions de fusion-acquisition (F&A), souvent, c’est parce que le fameux “soft stuff”, comme la culture d’entreprise, est ignoré. Cet article plonge dans la réalité des chocs culturels, une menace silencieuse qui érode l’identité que vous avez façonnée et qui affecte vos employés les plus loyaux. On explorera aussi le lourd impact émotionnel que cela entraîne, et on mettra en lumière votre rôle crucial pour protéger le cœur de votre entreprise, assurer que votre œuvre de vie prospère dans son prochain chapitre et, oui, protéger directement votre complément de prix financier. En tant que fondateur·trice, vous savez pertinemment que votre entreprise n’est pas qu’un actif ou un chiffre au bilan. C’est un organisme vivant, façonné par des décennies d’effort, un esprit unique et la fidélité de personnes qui comptent pour vous. Quand vous pensez à la vente, les chiffres sont importants, bien sûr. Mais ce qui vous empêche vraiment de dormir, c’est cette crainte que la culture vibrante que vous avez nourrie se fasse tranquillement écraser. Rappelez-vous de Susan, votre adjointe de bureau depuis 25 ans? Elle connaît l’anniversaire de tout le monde, leur commande de café, et elle fait battre le cœur du bureau avec son énergie chaleureuse. Vous pouvez presque l’imaginer, quelques mois après l’acquisition, l’air toujours tendue. La salle de repos accueillante a été remplacée par du mobilier modulaire, froid et impersonnel. Le babillard, autrefois rempli de photos d’équipe et de blagues internes, affiche maintenant des politiques d’entreprise stériles. “Oh, boss… c’est… différent, maintenant", murmure-t-elle, en regardant autour d’elle comme si elle craignait d’être entendue. “Ils trouvent que nos cafés du vendredi matin sont des ‘rencontres inefficaces’. C’est comme si la couleur avait disparu d’ici. Comme s’ils essayaient d’effacer chaque bon souvenir, chaque morceau de vous.” [3] Cette pensée? C’est un couteau en plein cœur. Elle confirme votre pire peur : que l’âme même de votre entreprise soit menacée. Et ce n’est pas une exagération dramatique. C’est un coût invisible et souvent non quantifié, des F&A qui échouent. 
By Caroline Samne August 11, 2025
Executive Summary You've built something truly special, and the thought of selling brings both anticipation and apprehension. We’ve acknowledged the profound impact of cultural clashes and the silent drain of talent. Now, it's time for the ultimate roadmap. This article provides you with actionable strategies to build resilience in your organization, from proactive cultural due diligence to safeguarding invaluable knowledge. We'll also equip you to advocate for the human element with your other trusted advisors. By prioritizing people, you ensure a smoother transition, protect your legacy, secure your earn-out, and create a stronger, more resilient future for the company you've poured your life into. You’ve built something remarkable, something that is more than just a business; it’s a living entity, infused with your values and the dedication of your team. We’ve acknowledged the profound impact of cultural clashes and the silent drain of talent that can threaten your company’s very soul during an M&A. It’s a lot to consider, isn't it? But here’s the good news: while the challenges are real, so are the solutions! It’s time to move from understanding the risks to embracing the roadmap for success. The overwhelming evidence demonstrates that the ultimate success of mergers and acquisitions is profoundly dependent on how effectively the human element is managed and integrated. The high failure rates of M&A deals, largely attributed to cultural clashes and people-related challenges, underscore that the "soft" aspects of human capital are, in fact, the "hard" determinants of long-term value creation [1, 2]. Companies effectively managing culture are "50 percent more likely to meet or exceed their synergy targets" [3]. This isn’t just about making people happy; it’s a direct, quantifiable driver of value creation and a competitive advantage. I. Bridging the Gap: Talking to Your Trusted Advisors You rely on your lawyer and your accountant. They're experts in their fields, focused on the financial and legal intricacies of the deal. But as you've keenly observed, they might not always prioritize the "people side" of M&A [4]. They might see human capital integration as an "extra expense" rather than a critical investment. So, how do you help them understand why this "soft stuff" is so vital? Here's how you can talk to your financial and legal advisors about the indispensable value of human capital integration, and why bringing in specialists is not an expense, but a strategic imperative: Frame it as Risk Mitigation: "Look, I know you're focused on mitigating legal and financial risks, and I appreciate that. But there's a massive risk that often gets overlooked: cultural clashes and talent loss. Studies show 70-90% of M&A deals fail to meet their objectives, and cultural issues are a leading cause [1, 2, 5, 6, 7]. Losing key employees isn't just a morale issue; it's a direct hit to productivity, customer relationships, and our ability to realize the very synergies we're paying for [8, 9]. Investing in human capital integration is like buying insurance against these risks. "Connect to Value Realization (and Your Earn-Out): "You've helped me structure this deal with an earn-out, which means my final payout is tied to the company's post-merger performance [4]. If our people are disengaged, if key talent leaves, or if the cultures clash, that directly impacts productivity, sales, and ultimately, whether those earn-out targets are met [8, 9]. Bringing in experts to manage the human side isn't just about 'being nice'; it's about protecting and maximizing the financial value of this deal, for me and for the buyer." Highlight the "Hidden Costs" of Turnover: "You understand the cost of a bad contract or a missed financial detail. But have you considered the hidden costs of employee turnover? Replacing a key employee can cost 0.5 to 2 times their annual salary, not to mention lost productivity, damaged customer relationships, and the loss of invaluable 'know-how' that isn't written down anywhere [8, 9]. These are real financial impacts that can derail the entire acquisition. A proactive human capital strategy prevents these drains." Emphasize Specialization: "Just as I wouldn't ask you to handle the operational details of manufacturing, I wouldn't ask the buyer's finance team to manage complex cultural integration. This is a specialized field. Firms like The Pillars bring expertise in organizational development and change management specifically tailored to M&A. They complement your work by focusing on the human element that underpins all the financial and legal aspects." It's About Long-Term Success: "This isn't just about getting the deal done; it's about setting the combined company up for long-term success. A well-integrated culture leads to higher employee engagement, better performance, and sustained growth [1, 10]. That's what makes this acquisition truly valuable, far beyond the closing date." By framing the conversation around risk mitigation, value realization, and specialized expertise, you can help your advisors see human capital integration not as an "extra expense," but as an essential investment that protects the deal and ensures its long-term success. II. Building Resilience: Strategies for a Human-Centric M&A Integration Given the high failure rates and profound human costs associated with cultural clashes, employee turnover, and tacit knowledge loss, a proactive, human-centric approach to M&A integration isn't just advisable; it's absolutely essential for achieving sustained value creation and securing your earn-out. The overwhelming evidence of M&A failures [1, 2, 5, 6, 7] and the substantial financial costs of employee turnover and knowledge loss [8, 9] clearly demonstrate that neglecting the human element leads to massive financial detriment. Conversely, research shows that companies effectively managing culture are "50 percent more likely to meet or exceed their synergy targets" [3]. This indicates that investing in cultural due diligence, transparent communication, and robust talent/knowledge retention isn't merely a risk-mitigation strategy or a "nice-to-have" HR function; it's a direct, quantifiable driver of value creation and a competitive advantage. This means M&A strategies must fundamentally reframe human capital management from a reactive cost center to a proactive, strategic imperative that directly contributes to the deal's financial success and long-term viability. This necessitates allocating significant resources, leadership attention, and time to these "soft" areas from the very inception of the M&A process, recognizing them as critical investments rather than discretionary expenses. Prioritizing Cultural Due Diligence and Integration Planning Early Assessment: It's crucial to assess the culture of each business before the deal is struck. Companies are "often surprised by the results of cultural due diligence" [1, 4]. This involves identifying shared values and differences [1, 10] but it's important not to exaggerate differences or categorize them as "good" versus "bad" cultures, as both can have unique strengths that can be leveraged [3, 10]. Dedicated Integration Team: Establish a dedicated integration team to oversee cultural alignment from the outset [1, 10]. This team should be empowered with resources and a critical role in achieving integration goals, ensuring that cultural considerations are not an afterthought [2, 10]. Defining New Culture: Define a set of desirable cultural attributes for the new, combined entity [2, 10] and articulate a clear "change story" to plot the desired cultural transformation [3, 10]. This program must be interwoven with all integration initiatives and resonate with people on a personal level, requiring both rational and emotional engagement throughout the change management process [3, 10]. HR's Strategic Role: Human Resources plays a crucial role in mitigating cultural risks and building cohesion and clarity post-deal [1, 11]. HR professionals are uniquely positioned to assess cultural compatibility, facilitate communication, and design retention strategies [1, 11]. Transparent Communication and Employee Engagement Open and Consistent Dialogue: Companies must communicate openly, honestly, and consistently throughout the M&A process [1, 10, 12]. This includes providing regular updates through town halls, emails, and Q&A sessions, ensuring employees feel informed rather than left in the dark [1, 10, 12]. Overcommunication: Overcommunicating early and often is vital, as employees tend to fear uncertainty more than change itself [1, 10]. Setting expectations with a clear timeline of what is changing and when is key to alleviating anxiety and preventing rumors from taking hold [12, 13]. Two-Way Feedback: Create an ongoing dialogue that allows employees to ask questions and voice concerns [1, 10, 12, 14]. Actively listen to employee feedback through surveys, feedback meetings, and one-on-one check-ins, and crucially, act on that feedback to reassure employees their voices matter and that their input is valued [1, 10, 12, 14]. Building Trust: Transparent communication helps build trust and provides clear guidance, making employees feel more secure and committed to the new organization [1, 10, 12]. This trust is foundational for successful integration. The research consistently highlights a complex, interdependent relationship between cultural clashes, communication breakdowns, and challenges in knowledge transfer. For instance, cultural differences [1, 10, 15] can lead to trust issues [1, 10, 15], which in turn make employees reluctant to share valuable knowledge [1, 16]. Poor or inconsistent communication [1, 10, 12, 14] fuels uncertainty, prompting employees to hoard information for perceived job security [1, 16]. This implies that these issues are not isolated problems to be solved independently but are deeply interwoven. Effective M&A integration, therefore, requires a holistic and integrated approach. Solutions must address the "people, process, culture, and enabling technologies" [17] in concert. Strategic Talent Retention and Knowledge Management Initiatives Talent Retention: Job Security and Roles: Provide reassurance about job security and roles [1, 12]. Be honest about potential restructuring and offer supportive transition plans, such as severance or outplacement services, if layoffs are unavoidable [1, 12]. Clarify new expectations, responsibilities, and career development opportunities for remaining employees [1, 10, 12, 18, 19]. People need to know where they stand to do their best work [1, 12]. Cultural Reinforcement: Reinforce company culture and values by focusing on shared values, involving employees in deciding which cultural aspects stay and evolve, and maintaining popular aspects of each culture to make the change feel more inclusive [1, 12]. Leaders should lead by example and embody the new culture [1, 10, 20]. Incentives and Development: Implement structured retention programs, including bonuses, career development opportunities, and clear role expectations, to reduce uncertainty and instill confidence [1, 10, 12, 18, 19, 21]. Recognize employees for their efforts, as this significantly increases engagement and reduces turnover [1, 10, 21]. Managerial Preparedness: Equip managers with essential change management skills to effectively address employee concerns and guide their teams through the transition [1, 10, 22]. Knowledge Management: Knowledge Audit: Begin any knowledge transfer plan with a thorough knowledge audit to inventory existing knowledge assets, identify where they are stored, who has access, and where gaps exist [1, 16]. This initial step is critical for understanding what knowledge is at risk. Proactive Documentation: Businesses must proactively encourage their people to document their knowledge and make it easy to do so, preventing the loss of valuable information, especially when key people leave [1, 16]. This shifts reliance from individual memory to accessible organizational knowledge. Tacit Knowledge Transfer Methods: Explore creative methods for transferring tacit knowledge, such as structured training sessions, informational interviews, and mentorship programs [1, 16, 17, 23]. Fostering a culture of continuous learning and knowledge sharing is a top priority, ensuring that experiential knowledge is passed on effectively [1, 23]. Systems and Culture: Invest in structured knowledge acquisition processes and knowledge management systems [1, 23]. Simultaneously, address employee resistance to sharing knowledge by creating an environment where employees feel valued, secure, and incentivized to contribute their expertise [1, 16, 23]. III. Your Company: Before & After Intervention Let's visualize the impact. This isn't just about abstract concepts; it's about the tangible difference a human-centric approach can make for your company.
A street divided by rundown buildings on the left and gleaming high-rise buildings on the right.
By Caroline Samne July 7, 2025
Relatable stories from other SMBs showcasing where things went sideways & more importantly, where prioritizing people led to incredible success.Learn more here.
Sidewalk with executives separating skyscrapers from a beautiful garden with colorful flowers.
By Caroline Samne June 26, 2025
You’ve heard those statistics about M&A deals faltering because the “soft stuff,”company culture,gets overlooked.This article dives into why this is so.More Here