Merging organisations – an impossible task for most CEO’s

by Finn Majlergaard | 22. Feb, 2025 | Blog, Article

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Merging organisations. The difficult task most CEO's think they master - but they don't

- which is why 2/3 of all Mergers fail to meet their objectives due to cultural clashes. Here are the top 5 reasons why merging organisations go wrong and what you can do to improve

The excitement when announcing a merger between two companies is usually substantial.  It is because a merger seems like the best choice for both companies. Together they might be able to lower the cost, get access to new markets, balance out each other's weaknesses etc. The strategic reasons can be many and the executive teams are usually excited about the future. But that excitement usually fades when it comes to actually process of merging organisations. At the time when you have to do the actual integration the Champagne is gone and the executives have already cashed in on the transaction. Furthermore, no one knows how to integrate organisations and some executives even believe it happens by itself, just they write the word "integration" in a powerpoint presentation.

 It is also rare to see the same high level of excitement further down in the organisation. The middle managers are having a hard time surviving being squeezed from both the bottom and the top, so a merger will only increase the pressure on them without adding any benefits at all. Further down in the organisation most people will be sceptical and fear that their job might become redundant after a short while.

All these fears exist even before the planning of merging organisations has begun. Fear is paralysing us psychologically. When we feel fear we spend most of our resources trying to eliminate that fear - resources that should have been spent on working for the benefit of the company.

When it is time to merge the organisations most people are scared - except the members of the senior management team who are excited (as they have nothing to lose) and often they assume that everybody else is excited too.

People are scared because nobody likes change and because M&A's, in particular, impose a threat on many people. I haven't seen a single merger or acquisition made so far when the main purpose of benefitting the employees - have you?

Gugin has facilitated a number of post-merger integrations over the years and we have counselled integration teams on the side in many cases as well. Based on our experiences we have created a list of the 5 most important things to remember when merging organisations. We will look forward to hearing your feedback and also discuss how we can assist you in your next post-merger integration process

 

1. Most people are against the merger or acquisition

The exitement is usually limited to the senior management teams of the two companies. Everybody else are in between constructive scepticism and a state of denial. This is because a merger or acquisition imposes a huge threat and as I wrote above - they never benefit the middle managers or employees

2. Don't forget your business

A post-merger process is extremely time consuming and is always underestimated. If proper, realistic estimates were made most mergers or acquisitions would never be executed because the cost would be too high. Planning the process and deciding to which level you want to integrate is time consuming. When merging organisations you have to find a way to bring together 2 families who never asked to be together and often the were competitors before the were brought together. They have very different cultures with different norms, values, traditions and history. Assessing these cultures (Gugin Cultural Diligence) and drafting how you want the new culture to be takes a fair amount of time too. when you have drafted the new desired culture you have to facilitate the entire organisational integration and cultural development process. Depending on the organisation it takes between 3 - 12 months.

While you are taking on these time consuming unfamiliar tasks you have to run your business so you don't lose momentum.

So usually the integration process is forgotten before it is even started and sometimes leave the 2 organisations wrecked. It is in a situation like that you can benefit having a company like Gugin facilitating the integration process so you can do what you do best, namely keeping the eyes on your daily business to make sure you don't lose customers and key employees.

3. Do you have the skills and courage to actually lead?

When running the business on a daily basis where no major changes are happening the expectations to the leader/manager are moderate. When big changes are happening like a merger or acquisition people at looking at their leader and expect him or her to show them the way through the mine field. And it is a mine field and the employees and middle managers are filled up with fear even if the appear calm, relaxed and in control. When we human being har fear we look for a way out of that situation. Children listen to their parents (for a change), passengers listen to the stewardesses (for a change) and employees and middle managers listen to their boss (for a change).

So being able to explain and create an image of the future that people can relate to is absolutely crucial. Some are very good at it, most people are not. People don't get exited and comforted by being presented with a powerpoint presentation with bullet points and spreadsheets. They want the real thing. They want their boss to stand up and tell them from the bottom of his or her heart how the future is going to be. Integrity it is called. We prepare that part too if you need it.

4. Have your masterplan and communication plan ready from day one

It might sound strange but quite a few of our clients don't have a clear plan for to which degree they want to integrate the organisation, how they are going to do it and how long it should take. Our advice is that these things must be in place before the announcement for several reasons. Firstly it is the first quistions that are going to be asked. Secondly, if everything is thought through and planned and ready to execute you will appear a lot more confident and trustworthy to both internal and external stakeholders. Thirdly, if you have your masterplan ready you will also know when to communicate the messages, how to communicate them and how to deal with the feedback.We have seen too many senior management teams being run over by internal and external stakeholders who want answers to all sorts of questions.

5. Remember: Merging organisations is probably not your core competence

Merging organisations is probably not your core competence, but it is ours. Taking on a huge project of merging two organisations and at the same time running the current business is impossible.

Letting a partner like Gugin facilitate the integration process gives you a number of advantages like:

  • You can access to crucial competences that will speed up the process and avoid failures
  • The people involved are usually more willing to speak frankly with external partners, which means we can provide much better information about concerns and fears without disclosing the origin.
  • You can concentrate on your main business
  • We have a huge pool of resources available across the globe

 

 

 

 

Merging organisations can be successful - here are 20 examples from Forbes

Dr Finn Majlergaard
Dr Finn Majlergaard

CEO Gugin, Professor, Author, Keynote Speaker, Author

  • We align your corporate culture with your strategy.
  • We take you safely through major changes in your organisation.
  • We develop the crucial cultural intelligence in your organisation by training your employees and leaders
  • We help you develop a competitive advantage with a unique corporate culture

Gugin has helped more than 600 companies around the world creating a winning corporate culture.

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What separates a good leader from one who truly moves people? Research — and decades of cultural intelligence practice — point to one word: charisma. And unlike talent, charisma can be learned.

In 1979, Warner Records refused to send Prince on tour. Not because of his music — they knew he was exceptional — but because he lacked charisma. He couldn't yet move an audience. Fast forward one year, and Prince had transformed himself into one of the most commanding performers in the history of popular music. He didn't wait for charisma to arrive. He worked at it, systematically, studying and adopting the techniques of the performers he admired.

That story is not just about rock and roll. It is a precise metaphor for leadership. At Gugin, we have spent over two decades helping leaders across cultures and industries make exactly this kind of transformation — not by telling them to "be more confident," but by equipping them with concrete, learnable strategies rooted in emotional intelligence, cultural intelligence, and communication science.

 

Why Most Charisma Advice Fails

The most common advice leaders receive about charisma is frustratingly vague: project confidence, be warm, be present. These qualities do matter. But they are nearly impossible to "just do" on command, especially under pressure, across cultures, or in unfamiliar organisational contexts.

Research by Professor John Antonakis and his colleagues at the University of Lausanne Business School has shown that charisma is not a personality trait reserved for the few — it is a set of communicative behaviours that can be identified, taught, and practised. In their studies, randomly selected middle managers who underwent structured charisma training were subsequently rated by peers and subordinates as more charismatic, more competent, and more trustworthy. The training worked.

At Gugin, we have built on this science and gone further — weaving it together with emotional intelligence (EQ) and cultural intelligence (CQ) to create a leadership development approach that is both evidence-based and globally applicable.

The Nine Charismatic Behaviours — And What They Really Require

The Antonakis research identifies nine concrete charismatic leadership tactics: using metaphors and stories, showing moral conviction, expressing shared feelings, setting high expectations, using contrast and rhetorical questions, using lists, and animating communication with body language. These are the building blocks. But building blocks need a foundation — and that foundation is emotional and cultural intelligence.

Take metaphors, for example. A metaphor is only powerful if it resonates with the audience. In Gugin's cross-cultural leadership programmes, leaders quickly discover that a metaphor drawn from American sports culture may fall flat in a team from Northern Europe, and that a story invoking individual heroism may alienate a collectivist audience in East Asia. The charismatic tactic is the same; the cultural calibration is everything.

The same applies to moral conviction. Appealing to shared values is one of the most potent charismatic tools a leader has. But whose values? Which moral frameworks? A leader operating across multiple cultural contexts must understand that concepts like fairness, loyalty, duty, and hierarchy carry profoundly different weight in different cultures. High cultural intelligence — the ability to read, respect, and adapt to cultural difference — is what allows a leader to express genuine moral conviction that actually connects rather than alienates.

Emotional Intelligence: The Inner Architecture of Charisma

Charisma without emotional grounding is performance. It can work in the short term, but it rarely sustains trust. The leaders Gugin works with are taught to understand that emotional intelligence is not a soft supplement to charismatic leadership — it is its inner architecture.

Consider the tactic of expressing shared feelings. Antonakis identifies this as key: when a leader says "I feel the same uncertainty you do, and here is how I am holding it," they build identification and trust. But this requires real self-awareness. Leaders must be able to name and regulate their own emotional states before they can credibly reflect the emotions of others. In Gugin's programmes, we invest significant time in developing exactly this capacity — helping leaders identify their emotional triggers, understand how their inner states broadcast outward, and build the emotional vocabulary needed to communicate with authenticity.

Empathy — a core dimension of emotional intelligence — also directly underpins several charismatic behaviours. Setting high expectations while simultaneously communicating belief in others (another of the Antonakis tactics) requires a leader who genuinely sees the potential in the people around them. That kind of seeing is empathic. It cannot be faked over time. When Prince produced the band The Time for Warner Brothers, he did not simply demand excellence — he made each member believe they were capable of more than they thought. That is emotionally intelligent leadership in action.

Cultural Intelligence: Charisma That Travels

One of the most important — and most overlooked — dimensions of charismatic leadership in today's world is its cultural portability. A leader who is magnetic in one cultural context may be perceived as arrogant, shallow, or inappropriate in another. This is not a flaw in those audiences. It is a signal that charisma, like all communication, is culturally embedded.

Gugin's work in over 60 countries has shown us that the nine charismatic tactics are universal in their structure but must be culturally adapted in their expression. Rhetorical questions, for instance, invite participation and create anticipation — but their delivery must match the power-distance norms of the audience. In high-hierarchy cultures, a rhetorical question from a senior leader may silence a room rather than energise it. In low-hierarchy cultures, it may spark exactly the engagement intended. Cultural intelligence tells the leader which dynamic they are working in, and how to adjust.

Similarly, the use of storytelling — one of the most powerful charismatic tools — varies enormously across cultures in terms of what stories are appropriate, how direct or indirect they should be, and what kinds of protagonists resonate. Gugin teaches leaders to build a culturally diverse repertoire of stories and to develop the sensitivity to know which story belongs in which room.

How Gugin Trains Charismatic Leaders

Gugin's leadership development programmes integrate the science of charismatic communication with structured development in emotional and cultural intelligence. The process is iterative and experiential, not theoretical.

Leaders begin by gaining honest self-awareness: understanding how they are currently perceived, what emotional signals they project under pressure, and how their default communication style reads across cultures. This foundation phase often surfaces important blind spots — the technically brilliant executive who speaks too abstractly to inspire, the empathetic manager whose conflict-avoidance reads as a lack of conviction.

From there, leaders move into skill-building: practising charismatic communication tactics in safe, structured environments with real feedback. They learn to craft metaphors that carry cultural resonance, to tell personal stories that build connection without oversharing, to use contrast and rhetorical structure to sharpen their message. They receive coaching on non-verbal communication — the body language, vocal variety, and presence that Antonakis identifies as essential to bringing charisma alive.

Finally, leaders apply these skills in live contexts, with coaching support, and receive 360-degree feedback that tracks their progress. This mirrors the approach Antonakis found to be effective — group training combined with individual coaching — and embeds it within the broader cultural and emotional intelligence framework that makes the development durable and globally relevant.

Charisma as a Leadership Responsibility

There is a deeper point worth making. Charisma is not about making yourself more impressive. At its best, it is about making others feel seen, energised, and capable of more than they believed. It is about communicating in a way that bridges difference, builds shared purpose, and creates the conditions for people to do their best work.

In a world where leaders must navigate unprecedented complexity — technological disruption, geopolitical volatility, multi-generational and multicultural workforces — the ability to communicate with clarity, conviction, and emotional resonance is not optional. It is a strategic capability.

Prince didn't work on his charisma because he wanted to be famous. He worked on it because he knew, instinctively, that the music mattered — and that without the ability to connect, the music would never reach the people it was meant for.

The same is true of leadership. The work matters. Charisma is what carries it across.

 

About Gugin  |  Gugin is a global advisory firm specialising in cultural and emotional intelligence. We help organisations build the leadership capability to thrive in a complex, multicultural world. Learn more at www.gugin.com

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