Purging the Urge to Merge

We have long suggested that the independent school sector is ripe for mergers, especially in markets facing demographic decline. The fact that relatively few mergers occur seems, on the surface, to be a lost opportunity, but perhaps not, given the point made by Rita McGrath in a post to Medium. In this post, McGrath, a professor at Columbia Business School, may have identified the proverbial fly in the merger ointment: The Integration Trap. She defines the trap as …

“… confidence bred from superficial similarities masking deep operational and cultural differences.”

In other words, those proposing a merger often underestimate (or ignore) the very real challenges posed by the differences between the two organizations. This is another example of culture eating strategy for breakfast, a phrase (probably) misattributed to management guru Peter Drucker.

Regardless of how alluring the merger may appear at first glance, leaders should proceed with caution and only move forward if they are prepared to tackle the unavoidable operational and cultural challenges.