Tuesday, June 26, 2012

Corporate Stockholm syndrome anyone?

Company A acquired a small but powerful local company B in Latin America 8.5 years ago. The acquisition made complete sense as B filled in certain gaps of A's portfolio from a competency angle whilst also giving them a presence in an emerging, fast-growing market. When the going was good, nobody cared for the underlying cracks....and then the world collapsed. Slowly issues around transparency, accountability, efficiencies, productivity that had been swept under the carpet in the past started assuming gigantic proportions and soon it was a full-fledged crisis.

Company A finally realised the need to tightly couple B with A and sent in Legal, Finance and HR teams to "fast-track" the integration. Surprisingly or shockingly (depending on one's perspective), everyone who moved over to LATAM started showing empathy for the situation on the ground, the challenges faced by the locals so much so that pretty soon folks from A started openly supporting the employees (and strategy) of B to the point of even defending them stoutly....and so, 8 years later, nothing has still changed on the ground. NADA.

No comments: