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4. Culture War
With managers engaged in a closed-door power struggle, it's not hard to envision a full-blown culture war breaking out among rank and file employees. Often, this begins with sarcastic jokes and negative comments by members of the acquired company. Seemingly, every announcement and decision communicated by the new leadership team, even positive news, is met with derision. If this negative atmosphere is allowed to fester, it won't be long before employees of the acquiring or dominant entity begin responding in kind to every idea, new or old, good or bad emanating from their new co-workers. Such ill will can spiral out of control, killing any chance for synergy and cooperation. Nothing turns off a customer quicker than an employee complaining about internal management issues. The answer to preventing that early rush of negativity is to seek and encourage workforce-wide input from the very start, while making a loud and conscious effort to reward positive behavior. As a last resort, those who don't buy in have to be weeded out.
5. Decision Paralysis
With everything around them changing, mangers and employees will often become tentative. Because employees are searching for their equilibrium in the aftermath of a merger, they may become hesitant and slow to react to challenge. Decisions that were easy in their former organization become a little tougher to make. It's bad enough when employees from each side of the deal are questioning each other's judgment, but it's a disaster when employees begin to question themselves and their own abilities. The problem is compounded when these employees call up the chain of command for assistance and are met with similar indecision by their managers. Everyone ends up waiting for someone else to make a move. In the best mergers, decision-making slows; in the worst, it may stop altogether. Senior leaders need to be aware of this dynamic and actively encourage progressive decision-making. Employees need to know that the only way to move up in the new organization is to take decisive action.
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