U.S. corporations eager to have a competitive advantage over their rivals should consider the importance of human capital development. Such a behavior may be due to such factors as increased company diversification and managerial energy absorption in mergers and acquisitions. To avoid such problems, corporations can undertake a number of restructuring activities such as downscoping and an employee reorientation of corporate culture. Seizing the moment to capture value in a strategic deal. Five propositions on successful post-merger integration are the following.
Early action is key to realizing synergies and establishing momentum.
Mergers create opportunities for fundamental engineering. Strategic options represent hidden value and therefore the biggest, albeit most elusive prize. The truth is, however, that participatory management has generally not accomplished much. It is rarely successful in breaking the walls of bureaucracy. In fact, downsizing and restructuring as they are normally practiced have had the opposite effect.