Why Do Both Marriages and Business Mergers Have a 50% Failure Rate?
By Laurence B. Valant AUGUST 2008 – Marriages and mergers end up on the rocks 50% of the time. Many management relationships, like husband and wife pairs, end up in such irreversible trouble that one person simply has to go—or be let go—often without a severance package. Accountants are not immune to these troubles. The most abused process—and yet also critical for long-term success in any business relationship or marriage—is communication. More specifically, the source of problems in interpersonal relationships is often the lack of clear, unambiguous communication. The death knells of any relationship are these words: • “That’s not what I wanted at all,” and • “That’s not what I thought you said.” Two rules can ensure success. These laws of interaction are effective in manager–subordinate relationships, merger and acquisition courtships, as well as in marriage. They are: • Expectations must be clear and quantifiable, and • Communications must be unambiguous. Unfortunately, the high ra
