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Our Blog 10 Reasons Why your Post Merger Integration Team Needs a Corporate Ombuds

10 Reasons Why your Post Merger Integration Team Needs a Corporate Ombuds

08/28/2023


We can probably all agree about the challenges that become apparent during the post-merger integration period.

  • Misunderstanding between the companies
  • Lack of communication
  • Lack of cultural fit
  • Assumptions about synergies
  • CEO personality
  • and more...

The question is, how do you overcome these obstacles so your company achieves the deal goals you envisioned?

What is an Ombuds?

You may not know about a new approach to ensuring a smoother transition and a happy, engaged merged culture pst merger.  What is that resource? 

A Corporate Ombuds.  An Ombuds is a conflict management expert who a company hires for a duel purpose:

  1. To provide a confidential, neutral, independent space for employees to share their work experiences, concerns, resolve conflicts and find a workable solutions.
  2. To anonymously share trends, hidden issues and systemic issues with senior leadership to enhance their knowledge of employee experience and organizational wellbeing.

What is an Ombuds program?

An Ombuds program establishes the parameters and best practices for the Ombuds office within the organization.  The program helps you to strategically implement an Ombuds program and achieve organizational goals. An organization first decides whether an Ombuds fits its purposes, generally to improve trust and transparency, then hires an experienced Ombuds Program developer like me to develop an original, custom program.

Why does your company need an Ombuds program?

Many professionals have not heard about Corporate Ombuds.  Let's take a minute to explore the 10 reasons why companies need an Ombuds program to face the post-merger integration challenges.

  1. Neutral Facilitation: Ombuds programs create neutral and unbiased environments. When dealing with sensitive M&A negotiations, having a neutral third party can facilitate smoother discussions, as both parties are more likely to feel heard and understood.

  2. Conflict Resolution: M&A transactions often come with concerns and conflicts arising from differences in organizational culture, decision-making, philosophies, values and more. Corporate Ombuds are skilled in conflict resolution techniques, which help to address disputes efficiently and maintain deal momentum.

  3. Enhanced Communication: Effective communication is crucial in M&A. Ombuds are great at encouraging open dialogue between parties, ensuring that concerns, interests, and goals, expressed and unexpressed, are effectively communicated, reducing misunderstandings.

  4. Trust Building: Developing trust between parties is essential for a successful M&A. Ombuds are experienced in building trust and providing a vehicle to discuss differences, so both sides can comfortably commit to the deal and follow through on their promises.

  5. Cultural Integration: Mergers often involve integrating different corporate cultures: tight vs loose; hierarchical vs flat. Ombuds help identify potential cultural clashes, develop strategies to reveal and manager these differences,  and support a more cohesive post-merger environment.

  6. Safeguarding Confidentiality: M&A negotiations involve sharing sensitive information. Ombuds program developers are well-versed in maintaining confidentiality, which is crucial for protecting sensitive business data throughout the process.

  7. Employee Morale: M&A can lead to uncertainty among employees. Ombuds professionals can support employee morale by providing a platform for addressing concerns and fears, helping to ease the transition and maintain productivity.

  8. Boost Retention: 47% of top talent leave during the first year of a merger. Ombuds can serve as a sounding board for employees who want to gain clarity and make well-considered decisions about the next step in their career.
  9. Long-Term Relationship Management: After an M&A deal, ongoing relationship management is crucial. Ombuds programs help establish mechanisms for ongoing communication and issue resolution, fostering a healthier long-term partnership in the future.

  10. Risk Mitigation: M&A transactions carry inherent risks. Ombuds professionals can help identify potential risks related to communication breakdowns, employee discontent, and cultural clashes, enabling proactive risk mitigation strategies.

Incorporating the expertise of an Ombuds program developer into the M&A process can lead to more effective negotiations, smoother integrations, and stronger post-merger relationships. My skills in conflict resolution, communication facilitation, and organizational development can significantly contribute to the success of your deal.

If you'd like to discuss specifically how an Ombuds program can support your efforts, let's talk


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