Jeremy Eden and Terri Long
A growing body of research has shown that 50% to 90% of acquisitions fail to pay off for acquirers. This means that traditional integration methods are not working. There are many reasons an acquisition might fail, but two recurring mistakes are the order and the depth at which the integration is tackled.
Albert Einstein famously said, “Anyone who has never made a mistake has never tried anything new.” Making mistakes in the process of innovating is necessary to gain new knowledge. But the mentality of “mistakes are necessary” should not extend to knowledge we already have about good management practices.
CEOs are often far removed from the thousands of processes carried out every day across the complex organizations they lead, resulting in easy growth opportunities missed. These opportunities can be uncovered using five key capabilities: problem-solving skills, cross-unit collaboration, fast decision making, strong implementation skills and real accountability.