Harnessing the people factor in post-merger integration

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M&As are major corporate change events — and one of the most stressful scenarios imaginable for some employees. This stress often results in resistance to change, which in turn creates a high failure rate — as much as 90%* for post-merger integration.

Poor handling of the “people factor” in PMI management is cited in many studies as the main cause of failure.

But it doesn’t have to be this way. EY is trialling a “psychological capital” model that identifies employees’ feelings about change, and helps them see it as an opportunity to flourish and succeed.

This article explains more about psychological capital; how it can be used to measure, develop and effectively harness in performance improvement for both the individual and the organization.

* C. M. Christensen, R. Alton, C. Rising and A. Waldeck, “The big idea: the new M&A playbook,” Harvard Business Review, 89, 2011; M. Apaydi, “The role of time in post-merger integration,” European Scientific Journal, 2014.

The article was written by:

  • Jennifer L. Dorling
    Consultant, People Advisory Services, EY, Germany

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