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PRODUCTS: Programs
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Mergers and Reorganizations
Using the same financial models, the same type of reasoning, similar management styles, why such incredibly disparate results? The answer is both easy and difficult. If the numbers are consistent, it must be about the
people Using Legacy’s technologies, you will:
You are at a crossroads. You can transform your culture, creating remarkable value, enabling stunning results, or you can become one of the statistics quoted below. Statistics on all mergers:
As many as 50% of key executives leave an acquired company within 12 months. It is common that 75% will leave within three years! And how many staff people will leave with them? Replacing an employee costs 150% of their annual salary, and 200 – 250% for managerial and sales positions. And how many customers do these people take with them? These outrageous costs are not necessary. Proactively
seize this unique opportunity to transform your entire organization. |
Organizations with rich, healthy cultures achieved net income growth of 756 percent, versus a mere 1 percent for those with less-defined cultures” Organization Performance and Culture Despite the penalties for failure, too many CEO's ignore a key factor that can make or break an M&A deal: culture clash. Outlook Journal In 1994, Quaker Oats (the maker of Gatorade) purchased Snapple for $1.7 billion. Potential synergies were impossible to ignore. Even though both products were found in similar retail outlets, Quaker’s highly-focused, mass-market style and Snapple’s quirky, entrepreneurial style clashed and remained unresolved. In 1997, 3 years later, Quaker sold Snapple for a mere $300 million. Various Sources What lessons can we learn?
Scott C. Nevins |
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© Legacy Transformational Consulting, Inc.
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