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MERGERS AND ACQUISITIONS

75 percent of mergers and acquisitions are disappointing or outright failures
Business Week, October 31, 1995
Cultural incompatibility is consistently rated as the greatest barrier to successful integration
Watson Wyatt Worldwide 1998.

Vector offers the following services for earlier achievement of the Business Plan by assessing and pro-actively managing corporate culture;

CULTURAL ASSESSMENT

Vector's Cultural Assessment process measures the managerial and staff behavioral patterns which exist in the organization without the use of pre-determined scales or cultural attributes. It is an objective process which makes no assumptions about what does or what should exist.

Cultural Assessment can be carried out before a Target Company is selected as a means of understanding one's own organization, thereby assisting Target company selection for easier, faster integration.

When a Cultural Assessment is carried out with the purpose of comparing the cultures of two or more organizations, it is referred to as Cultural Due Diligence

Cultural Due Diligence (CDD) is a systemic, systematic and research-based methodology to;

Assess the characteristics of two or more organizations' cultures
Specify cultural similarities, differences and areas of leverage
Make specific recommendations for either the creation of a new merged culture or avoiding culture clash if one dominant culture is chosen as the merged culture
Provide an integration roadmap

CULTURAL INTEGRATION

Effective Culture Integration will speed the achievement of desired results by minimizing customer, investor, and employee confusion and dissatisfaction for the merged organization.
Vector works with organizations to ensure that the main elements for successful integration following a merger or acquisition, assuming Cultural Due Diligence has been carried out, are in place:

Strong leadership
Absolute clarity of organizational intent and direction, including mission, vision, strategy, infrastructure and values
An effective Integration Planning & Execution team
A short, demanding, integration timescale

BUILDING IN-HOUSE CULTURAL ASSESSMENT AND INTEGRATION CAPABILITY

Organizations with a growth strategy which includes a series of acquisitions can achieve better integration of their acquisitions by building an in-house capability to carry out Cultural Assessment and Integration. Vector transfer their skills and expertise to build-from-scratch this capability or further develop an existing team. An ongoing relationship with Vector brings an objective outside view to bear on any new acquisition