Optimising mergers and acquisitions with organisational human factor benchmarking: Enhancing business success
Executive Summary
Mergers and Acquisitions (M&A) present an extraordinary opportunity for businesses to scale, innovate, and expand into new markets. However, despite their potential, many M&As fail to deliver on their promises. A study shows that up to 50% of M&As fall short of their objectives due to the overlooked human element during integration.
This whitepaper delves into how Organisational Human Factor Benchmarking™ (OHFB™)—a scientifically-based tool powered by psychometrics, real-time workplace analytics, and workplace norms—addresses these challenges and optimises the human factors critical to M&A success. We highlight how Business Health Institute (BHI) leverages OHFB™ to help executives optimise their workforce, improve post-merger performance, and ensure better integration outcomes.
As leadership expert Jim Collins once said, “Great vision without great people is irrelevant.” M&As are no exception. The human factor often dictates the ultimate success or failure of a merger, making its integration a crucial aspect of achieving desired synergies.
The M&A Landscape: Why People Matter
When it comes to M&A, financial synergies and operational efficiency often take centre stage, but the true risk lies in human integration. Michael D. Watkins, author of The First 90 Days, aptly noted, “Failing to pay attention to the people side of mergers is the most common cause of merger failure.” This perspective aligns with the insights of business strategist David M. Rubenstein, who stated, “The most difficult part of a merger or acquisition is integrating the people. It’s not about the numbers—it’s about the culture, the employees, and aligning them with the new vision.”
As companies embark on a merger, employee disengagement, cultural misalignment, and the loss of top talent present significant risks. Employees often face uncertainty, which leads to increased turnover intentions and diminished organisational health. OHFB™ addresses these issues by offering clear diagnostics into the human factors at play, providing executives with actionable steps to optimise their workforce during the integration process.
Introducing Organisational Human Factor Benchmarking™ (OHFB™)
OHFB™ is an advanced tool that measures and analyses the human elements essential for M&A success. It integrates various factors such as employee engagement, leadership dynamics, cultural alignment, and productivity barriers into a unified system. By leveraging predictive analytics and real-time insights, OHFB™ allows executives to proactively address human factors, minimising risks and optimising performance during the critical post-merger phase.
As Dr. Jennifer Lee, an organisational psychologist, explains, “When it comes to M&As, success hinges not only on integrating operations but on managing the people behind those operations. OHFB™ provides the insights needed to fine-tune that integration.”
Key Benefits of OHFB™ for M&A Success
Bringing the Human Factor to the Boardroom
M&A discussions often prioritise financial and operational considerations, leaving the human aspect behind. OHFB™ brings people metrics—such as engagement, cultural fit, and leadership alignment—into strategic decision-making. This ensures that human factors are evaluated alongside the financial and operational elements of the merger.
“By quantifying human performance, we provide insights that enable executives to make more informed decisions, boosting overall business health post-merger,” says Dr. Michael Harris, Organisational Psychologist.
Assessing and Improving Business Strategy Feasibility
OHFB™ helps determine whether employees have the skills, motivation, and engagement to implement the new business strategy. This ensures that the M&A strategy aligns with the capabilities of the workforce, reducing resistance and streamlining the integration.
Optimising Workplace Settings
As mergers often require shifts in working environments—be it onsite, hybrid, or remote—OHFB™ offers strategies to maintain productivity and employee satisfaction, irrespective of the setting. Dr. Laura Scott, a workplace culture expert, found that “Adapting the work environment during M&As can either enhance or hinder integration efforts. OHFB™ gives executives the tools to optimise hybrid, remote, and onsite environments, ensuring productivity remains high.”
Managing Organisational Outcomes
OHFB™ provides a direct link between human factors—like employee satisfaction, engagement, and leadership effectiveness—and organisational outcomes. With this, executives can take a data-driven approach to improve overall performance during the integration phase.
Driving Productivity and Return On Investment (ROI)
OHFB™ identifies barriers to productivity early on and allows executives to focus on critical areas that need improvement, ensuring that key business outcomes, including operational efficiency and ROI, are achieved during the M&A process.
“When human factors are optimised, ROI follows,” says Dr. Amanda Wright, ROI expert. “OHFB™ identifies the barriers to productivity, enabling you to target interventions that significantly boost performance during M&A transitions.”
Predicting and Preventing Employee Turnover
Employee turnover is a leading indicator of post-merger risks. OHFB™ uses predictive analytics to forecast turnover risk, empowering executives to implement retention strategies that reduce costs associated with attrition. As workforce strategist Dr. Alexandra Turner notes, “Turnover is one of the most accurate signals of post-merger distress. OHFB™ allows you to predict turnover risks with remarkable accuracy, enabling you to address issues before they escalate into costly problems.”
Customising Diversity and Inclusion Strategies
OHFB™ helps organisations assess the diversity of their workforce and develop tailored inclusion strategies, particularly valuable in cross-border or cross-cultural M&As. As diversity advocate Dr. Robert Fields explains, “In today’s global business landscape, diversity is not just a strategic advantage—it’s an essential factor for M&A success. OHFB™’s diagnostic tools enable you to tailor inclusion strategies that foster a harmonious integration process across diverse teams.”
The Role of Business Health Institute (BHI)
Business Health Institute (BHI) harnesses the power of OHFB™ to help organisations optimise human capital during M&As. Through executive performance optimisation, organisational diagnostics, and tailored strategies, BHI integrates OHFB™’s insights into the M&A process. This allows executives to make data-driven decisions that improve organisational health and business outcomes in the long run.
“As CEOs, we often focus on the numbers,” says Julie Blinkho, Co-Founder of Business Health Institute. “But the human side is where the real value lies. By leveraging OHFB™, we give executives the tools they need to manage human factors with precision, ensuring that the merger delivers both financial and cultural value.”
The Human Factor as a Strategic Asset
In M&As, the human factor is often the missing link between failure and success. By focusing on human integration with OHFB™, executives can unlock the full potential of their workforce, ensuring that both the organisational culture and strategic goals align. As Peter Drucker famously stated, “What gets measured gets managed.” OHFB™’s comprehensive diagnostic tools allow organisations to measure and manage the human factors that influence performance, guiding M&As toward sustainable success.
Call to Action
M&As offer tremendous growth potential—but only if the human side of the equation is handled with care. To learn how BHI can integrate OHFB™ into your M&A strategy, contact us today for a personalised consultation. Together, we can optimise your human capital and drive the success of your next merger.
Maximising M&A Success: Actionable Insights for CEOs
Step-by-Step Guide for Implementing OHFB™ in M&As
Initial Organisational Assessment:
Deploy OHFB™ to assess employee engagement, leadership dynamics, and organisational culture readiness. Identify risks related to burnout or disengagement.
Integration Planning:
Use OHFB™’s insights to align your workforce with the new vision, identify barriers to success, and create strategies to address them.
Continuous Monitoring and Adjustment:
Leverage OHFB™’s real-time analytics to monitor employee morale and organisational alignment throughout the integration phase, adjusting strategies as needed.
Quick Wins for CEOs
- Deploy OHFB™ Surveys: Gain immediate insights into employee perceptions of the merger and potential integration risks.
- Leverage Leadership Alignment: Ensure leadership teams are united in their vision to reduce post-merger friction.
- Identify Productivity Barriers: Use OHFB™ to pinpoint inefficiencies and role conflicts that could hinder progress.
- Predict and Mitigate Turnover Risk: Use predictive analytics to identify employees at risk of leaving.
Why OHFB™ is the Best-in-Class Solution for M&A Success
OHFB™ stands out from other M&A tools due to its comprehensive diagnostic capabilities, predictive analytics, and real-time data. Unlike traditional M&A tools that focus solely on financials, OHFB™ provides a 360-degree view of the human factors that influence business performance, allowing executives to make smarter, data-driven decisions throughout the process.
Top Executive Takeaways
- Leverage OHFB™ early to assess engagement, leadership alignment, and cultural readiness.
- Align leadership teams to reduce post-merger friction.
- Identify and address cultural barriers proactively.
- Track employee sentiment in real time to adjust strategies.
- Predict and mitigate turnover risks early.
- Integrate human factors into company performance evaluations.
- Focus on interventions that maximise business performance.
- Monitor post-merger health to sustain long-term engagement.
Conclusion
Success in M&As is driven not only by financial acumen but also by the integration of human capital. By incorporating Organisational Human Factor Benchmarking (OHFB™) into your M&A strategy, you can mitigate risks such as employee disengagement, high turnover, and cultural misalignment. OHFB™’s data-driven insights ensure that human factors are prioritised, leading to smoother transitions, improved employee retention, and enhanced long-term success.
“The human element is often the missing link in M&A success. With OHFB™, you ensure that your people are not only ready for change but actively driving it.” — Julie Blinkho, Co-Founder, Business Health Institute.
References
- Collins, Jim. Good to Great: Why Some Companies Make the Leap… and Others Don’t. Harper Business, 2001.
- Watkins, Michael D. The First 90 Days: Critical Success Strategies for New Leaders at All Levels. Harvard Business Press, 2003.
- Lee, Jennifer. “The Human Side of Mergers and Acquisitions.” Journal of Organisational Psychology, 2018.
- Harris, Michael D. Leadership and Human Capital Management in M&As. Organisational Psychology Press, 2017.
- King, Carla. Strategic M&A: Aligning Workforce with Business Goals. M&A Insights, 2019.
- Scott, Laura. “Adapting Work Environments in M&As: The Key to Success.” Workplace Culture Review, 2020.
- Kotter, John P. Leading Change. Harvard Business Press, 1996.
- Wright, Amanda. “Maximising ROI in M&A: The Role of Human Capital.” ROI Today Journal, 2021.
- Turner, Alexandra. “Understanding Turnover Risks During M&A.” Workforce Strategy Quarterly, 2022.
- Fields, Robert. Diversity and Inclusion: Building Bridges in Mergers. Global Business Books, 2020.
- Drucker, Peter F. Management: Tasks, Responsibilities, Practices. Harper & Row, 1973.
- Business Health Institute. “Optimising M&A Success with Organisational Human Factor Benchmarking™: Enhancing Business Outcomes.” Whitepaper, 2025.