Merger and acquisition can be a double-edged sword, offering the potential for an organization to accelerate its growth, expand product and service offerings, and enter new markets. However, these endeavors also carry the risk of financial disaster and public embarrassment, as exemplified by high-profile failures like AOL/Time Warner and Chrysler/Daimler. Reports suggest that a significant percentage of mergers fail to meet their intended objectives, with an estimated one in three failing due to cultural reasons. One independent energy company’s experience serves as a valuable lesson in how mergers can succeed by emphasizing cultural alignment throughout the process.
This energy company, founded in the 1970s, has evolved into one of the largest U.S.-based independent oil and gas producers and processors of natural gas and natural gas liquids in North America. Much of its growth has been driven by mergers and acquisitions, averaging at least one acquisition per year and currently employing over 5,000 people. The TRACOM Group’s products, specifically SOCIAL STYLE (Producing Results with Others) and Orchestrating Team Performance courses, have played a crucial role in the company’s leadership development process and support of its merger strategy.
The leadership development program, which aims to instill common competencies throughout the organization, recognizes the importance of interpersonal skills in effective management and achieving success. SOCIAL STYLE training has been instrumental in building a common culture and providing a context for addressing business challenges, enabling individuals to differentiate between interpersonal issues and fundamental business concerns. Additionally, the company utilizes TRACOM’s Orchestrating Team Performance course to enhance workgroup productivity, fostering a collaborative approach among individual contributors. These efforts have contributed to the organization’s growth and success, with managers crediting SOCIAL STYLE for making their roles more manageable and effective.