Value Systems in coming together

Value Systems in coming together

This article is not just of corporate organizations but all, including family as an organization. It is now an accepted norm that in mergers and acquisitions of corporates, cultural, value, IT and management merger is a key exercise. Thousands of dollars are spent on PR, HR & Corporate exercises. Town Hall meetings, discussions with employees are de facto activities.

From ancient times, the vassal kingdoms, acquiring kings, kingdoms coming together due to agreements and marriages always ensured that all subjects combined were treated well. History now tells us, that brutal conquerors were however different.

While the role of the senior partner is to ensure equal status, hear suggestions of value, give wings to the junior partner, the junior partner has a role too. The “Dharma” of the junior partner is to understand the value systems, philosophy and ideologies of the senior partner and abide by it, accept it, contribute to it and grow with it. This kind of value add is what makes successful mergers and acquisitions. In such mergers there is a Chemistry factor as well. We have seen so many CEO’s emerge from the junior partners team to head the merged entity after a period or sometimes immediately as long as the positive value systems remain the same. Why should the value system be undisturbed? Every organization or a brand has a value, an image based on which stakeholders align themselves too. A case in point Brand “Tata”. This brand is known for good business practises, empathy, solidarity with the people and substantial give away for common good. One cannot get into this house and say one fine day, that every transaction will have economic profitability at its core. Profitability must be an angle, albeit an important one. The shareholders who invest in these companies also are aligned to this cause. So, the value systems must remain.

In preceding portions, 282 words have been devoted to corporates. The same words extend to families and charities which are organizations as well. While it is nice to have fresh thinking, new blood, and new ideas to come into these organizations, we all must be mindful, that such organizations are built on certain principles, empirical data, values and ethos. What is good must be retained, cherished and what is not may be changed after deliberation. The incoming and existing partners have a responsibility to build further upon this value and not build upon these values. Every stakeholder associated has a role. Such mergers then become enduring and when the junior partner and next generation take over, they realize that parts are now smaller than the whole. Value established!

CA. Aditya Sesh