"Lessons from Failed Corporate Marriages

The corporate divorce rate is distressingly high, nearly 50 percent. That is to say, almost one out of every two transactional marriages ends in failure. This is the case whether the transaction is a merger, an acquisition or a leveraged buyout. The marriage process typically includes detailed plans, projections and analysis. Revenue enhancement schemes and cost-cutting programs are often meticulously laid out. Committees and task forces are formed to implement the transaction. the impact of virtually all other planned operating changes was also assumed to take place immediately. The new owner, like many others in failed transactions, ignored the details of carrying out the planned changes. Though such organizational overconfidence is extreme, numerous corporate decisions are made by executives who focus on grand visions and mission statements. Many of these executives consider detailed implementation plans not worthy of their attention. Read the article to gain an insight into this subject.

Provided by: Booz Allen Hamilton Topic: Software Date Added: Jan 2003 Format: HTML

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