Alliances, acquisitions, and mergers can often look like  true battlefields, with employees openly or covertly revealing their heightened stress levels, distractions, and overall sense of confusion.

Even though top managers may present themselves with “Aqua Fresh” smiles on TV or in magazines, boasting about their clever strategies and imagined partnerships that promise maximum growth and profitability for shareholders, the reality within the new corporation is often far from easy.

As stock exchange value goes up, delighted by this new generation of head-cutters, situation in the field often looks more like the Bronx in New York.

According to a recent study conducted by A.T Kearney on a hundred companies that recently underwent a merger, 58% of these companies, either partially or completely, killed the existing values and assets (human and organizational assets), without gaining any form of capitalization. This emphasizes the potential negative impact that such mergers can have on the human and organizational aspects of a company.

Two-thirds of them have confidently acknowledged their inability to achieve their strategic objectives.

Frequently, the expected savings that have justified significant cost-cutting decisions never materialized or were only achieved superficially through large-scale restructuring based on factors like the number of employees or facilities. This often leads to chaos within the organization and later results in substantial indirect costs. There are several main reasons for the subsequent increase in costs after restructuring:

  • Best elements are leaving rapidly, creating confusion between survivals.
  • In the world of management, best “Politicians”, cleverly secure key positions for themselves and their inner circle through skilled lobbying, leaving the others in an unbearable state of expectation.
  • The reorganization process remains stucked in the “reconstruction” stage, leading to a persistent and chaotic situation that persists even after 2 or 3 years. This ongoing mess is causing significant challenges and inhibitions at lower levels.
  • Senior professionals are often dismissed, sacrificing their valuable expertise and knowledge, leaving behind them an empty shell.
  • The absence of a proactive approach to create a new corporate culture in the early stages, can inadvertently contribute to the persistence of antagonistic factions within the organization.
  • Desynchronisation of existing synergies between R&D, Manufacturing , Marketing…
  • Productivity of employees at the shop floor level can gradually declines as they become preoccupied with rumors circulating amongst them about their future.

So, what’s the verdict? Is losing your job after a merger or an acquisition a favorable outcome or a detrimental one?

Trying to retain your position within your current company, with unclear borders in your role, and a deteriorating work environment, may not always be the most favorable choice.

Think twice before taking any decision!

If you desire to adapt yourself and thrive in the changing landscape, while navigating through the unpredictability of this new era, you may find your inspiration in Ian Stewart’s enlightening masterpiece, “The New Science of Disorder”. Within its pages, you will discover valuable insights on embracing the confusing nature of chaos and uncertainty.

Alternatively, you could choose to collaborate with us, as we offer numerous methods to preserve and sharpen your skills without succumbing to disorder.

Emmanuel de Ryckel

PS: I wrote this text at the end of the 2000s when I was managing industrial operations at the Honeywell site in Amiens. I rewrote it today as an experiment using AI, which didn’t really convince me.