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One word is critical to M&A Success – CULTURE

One word is critical to M&A success – CULTURE

We learned last week that Hewlett Packard Enterprise is merging its enterprise services unit with Computer Sciences Corp (Read the full story). This is a perfect opportunity to talk about the consequences of mergers on identity and brand, and how having a solid strategy for both is key in your merger’s success.

Research has shown that as many as 83 percent of mergers fail to achieve their original business goals. Brand value, or goodwill, suffers right along with business value, often destroying the appeal and premium that might have inspired the acquisition in the first place. Why is this? Because culture, and the purpose behind each organization being combined, is often ignored in favor of the numbers.

These deals are put together by attorneys and investment bankers, who fail to consider the cultural implications of the merger. These people think in terms of “synergy” and 1 + 1 = 3, when the real goal should be 1 + 1 = 1.

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Why One Identity is More Powerful than Many

Why One Identity is More Powerful than Many

Many organizations – whether corporations, non-profits, or educational institutions – develop broad stables of identities to segment their offerings to different audiences. Some of them succeed with this strategy, but many of them do not. Our client, The University at Buffalo (UB)’s recent success can help explain why a singular identity lends more collective strength to an institution than can a handful.

UB is an AAU institution, which means it has been carefully selected to sit among only 61 peers in the American Association of Universities. It is the largest and most comprehensive research university in the SUNY system, and has multiple nationally ranked departments. Over the years, however, UB has had multiple names, and adopted specialized identities for athletics and other departments. These changes had a dampening effect on awareness, appreciation and internal pride.

Now, the university is committing to a singular identity, backed by a strong and unifying brand strategy, and is already reaping huge rewards in local pride and national momentum.

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Global Teamwork Achieves Scientific Breakthrough

In Marshall Strategy’s work with leading researchers at Caltech, UC Berkeley, UC San Francisco, UC Santa Barbara and Rockefeller University, it has become obvious that today’s most important issues require not just brilliant people, but people who have the skills for working with others productively.

For the first time, scientists have observed ripples in the fabric of space-time gravitational waves, arriving at the earth from a cataclysmic event in the distant universe, opening a new window on the cosmos, and confirming Einstein’s Theory of Relativity. This was only made possible by large groups of people working together and points out the importance for universities to not only impart knowledge, but to impart the skills required for working with others successfully. This applies to all significant areas of human endeavor.

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Yosemite National Park

Yosemite Has Lost Its Brand

Although we understand the critical importance of trademarks in preventing others from profiting from your intellectual property, we are disappointed in the move by Delaware North to try to extract $51 million from the National Park Service for a shortlist of iconic location names in Yosemite Park. To us, Delaware North is holding these properties for ransom from the American people, for a few historic names that will have little to no value anywhere else.

Let’s back up a minute – last year, Delaware North lost the contract to run hotels and concessions at Yosemite National Park. Shortly thereafter Delaware filed suit, claiming that the Park Service (or its new contracted vendor) no longer has the right to use the familiar and iconic names of historic park facilities (Ahwahnee Hotel, Curry Park, Badger Pass, the Yosemite Lodge at the Falls, and Wawona Hotel). It turns out the Park service had never trademarked the names, so Delaware North took advantage of the situation and trademarked them themselves. Rather than pay a ransom to use the names, The Park Service has agreed to create new names for the facilities.

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