POST-MERGER INTEGRATION AND COMMUNICATION EFFECTIVENESS: THE CORPORATE EXPERIENCE OF GILLETTE MERGING WITH PROCTER & GAMBLE

被引:0
|
作者
Modena, Ivana [1 ]
机构
[1] Int Univ Geneva, ICC, Dept Media & Commun, CH-1215 Geneva 15, Switzerland
关键词
Mergers & Acquisitions; Communication Effectiveness; Multinational Corporations;
D O I
暂无
中图分类号
F [经济];
学科分类号
02 ;
摘要
The purpose of this paper is to describe a successful case of post-merger integration thanks to effective communication. Corporations are affected by the implications of doing business in unpredictable, complex environments. In order for organisations to survive and succeed, they have to constantly move through mergers and acquisitions. The case of a merger between two consumer products companies, 'Procter & Gamble' and 'The Gillette Company' has been chosen as an example of successful integration. January 2005 the Cincinnati-based "Procter & Gamble" (P&G) announced the acquisition of the Boston-based "The Gillette Company" resulting in a manufacturing giant. This deal combined some of the world's top brands by creating the world's largest consumer goods company around the globe. P&G owns a portfolio of approximately 150 brands, ranging from detergents, health care, cosmetics, beauty care, food and beverages. Gillette is best known for its razor business as well as the brands "Oral-B" and "Duracell". The transition phase lasted two years (2006-2007) and it was a big restructuring project of P&G to integrate Gillette people. In 2008 started the post-merger implementation which is the most difficult phase of the acquisition process because it is the reconstruction of an organisational stability where people and brands should finally be integrated. The corporate values of both companies have to be negotiated to model a corporate culture which fit in the P&G people as well as the Gillette people. The organisational culture communicates values which fosters group cohesiveness by sharing the same sphere of identity amongst all employees. Corporate communications play a crucial role in the construction of new corporate realities as a result of the negotiations of different organisational routines of merging enterprises. This paper outlines various communication efforts used to build up a new corporate culture in post-merger integration. To what extent does communication facilitate the integration of Gillette people into the business reality of P&G people? In-depth interviews with the executives of Gillette in the British subsidiary of P&G were conducted in March 2009. Opinion was unanimous as to the importance of integrating the two different corporate cultures of P&G and Gillette. According to these managers the areas of major conflicts were the differences in corporate values, in decision models as well as in oral and written communication. Firstly, the corporate values of both companies have been negotiated to model a corporate culture reflecting both corporations: the integration of the two merging companies led to a more standardised approach by globe and managers developed an acceptance and support for that kind of approach which had not yet been the case for P&G. Then, as a result of the combination of two different decision making models the merged company created a new decision model using the acronym 'PACE' (Process owner, Approver, Consultant, Executor) in order to speed up the process of decision and to create a formal model which give clear directions for action. Every decision implies the participation of one coordinator the process owner, one approver the person in charge of the final decision, while one or more consultants or executors are allowed in this decision model. Finally, as a result of the conflicts due to the large use of acronyms in the language of P&G managers, a book about acronyms has been elaborated and some of them have been eliminated. This case demonstrates that managers adapt to new organisational realities by building up consensus through communication. The communicative efforts of managers of merging corporations to negotiate new organisational realities were crucial to the successful integration of Gillette managers. Indeed, different corporate values, decision making models as well as differences in oral and written communication are communicative contingencies that have to be seriously taken into consideration in mergers and acquisitions in order to avoid failures. The practical importance of this investigation relates to the implications of learning new skills, behaviours and growth for managers who are actively involved in adapting to changing organisational settings.
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页码:1424 / 1426
页数:3
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