Cultural insights become a critical tool to support integration

44 percent of M&A leaders cited lack of cultural fit and friction between acquirer and target as top reasons integrations fail according to a recent McKinsey survey. Cultural issues can delay value capture and prolong integration efforts even when the impact is less severe. Still, many M&A executives admit they gave culture too little attention, too late in the process.

Generating cultural data early can help prevent most-merger messes before they happen. Analyzing five cultural attributes - talent, role clarity, performance management, customer focus, and decision-making - early on can reveal integration risks. Addressing variances in these areas through the integration plan can attract critical talent, set clear accountabilities, align incentives, maintain customer focus, and enable quick but inclusive decisions.

Serially acquisitive companies continuously evaluate their own culture and gain insights into targets' cultures to smooth integrations. Other acquirers should follow suit. Using culture as a compass, not an afterthought, is crucial to capturing deal value and retaining talent through a successful integration.