Human Resources: Cartus Introduces Six Solution Pillars for Successful Cultural Integration of International Merger

As demonstrated by the latest wave of merger and acquisition (M&A) activity, a record number of companies are currently challenged by how to best integrate international organizations. Compelling mega-deals such as Lucent/Alcatel, Merck/Serono Biopharmaceuticals and Mittal Steel/Arcelor hit the front pages on a daily basis, all potentially as interculturally challenging as the well-known Daimler/Chrysler integration.

With more than $2.7 trillion riding on global M&A success in 2006 to date, executives face tremendous pressure to succeed. However, recent data still suggests that only 40 percent of M&As create shareholder value. While most firms target fundamental “hard” challenges such as IT and infrastructure, 80 percent of the risks associated with international M&A derive from “soft" challenges such as cultural integration and the mental merger.

“Culture-related and people issues are the primary factors leading to M&A failures,” said Stéphane Brahy, who leads M&A Solutions with Cartus Corporation and is the author of a recent article on this topic published in the Journal of Organizational Excellence. “These culturally rooted challenges, if unaddressed, can become damaging ‘cultural viruses’ that often prove fatal to newly merged corporate entities.”

Cartus Corporation – which partners with one out of three Fortune 500 companies– has designed a blueprint to eradicate such cultural viruses and to lead international organizations to global success through effective cultural integration. Internationally savvy organizations can help plan for their M&A success by following these “Six Solution Pillars,” recommended by Cartus:
- Address "soft" challenges early
- Pick and develop their global teams wisely
- Assess their own set of cultural viruses
- Manage the “mental merger”
- Leverage the language and lexicon opportunity
- Cultivate culture

Leaning on robust global client experiences, Cartus brings the missing link to successful international M&As.

“Cultural understanding is as much about process as it is about content,” said Brahy. “By simultaneously addressing hard and soft challenges, organizations substantially increase their odds to succeed.”

About Cartus
Cartus Corporation is the premier provider of global mobility management and workforce development solutions serving the corporate, government and affinity markets. Through its industry-leading outsourcing, consulting, intercultural and language training, Cartus helps the mobile workforces of organizations of all sizes achieve success worldwide. With 50 years of experience, Cartus helps clients achieve cost reductions and enhances service performance to accomplish their organizational objectives. Cartus, formerly known as Cendant Mobility, is part of Realogy Corporation (NYSE: H), the world’s leading real estate franchisor which has a diversified business model that also includes real estate brokerage, relocation and title services. Headquartered in Parsippany, N.J., Realogy has more than 15,000 employees worldwide. Visit www.cartus.com and www.realogy.com for more information.

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