The so-called “mini-recession”, from which the economy is emerging, slowed but did not stop the seemingly endless procession of mergers and acquisitions. Surprising perhaps, but the enduring popularity of the M&A phenomenon, even in the best of times, is not supported by post merger track records.

A.T. Kearney reported that 58% of mergers do not achieve the pre-merger goals and that only 42% out-performed their competitors two years after the merger. A Harvard Business Review report found that a scant 21% of companies claimed “clear success” following a merger.

While many variables may account for this shortfall, a McKinsey Quarterly article entitled, The People Problem in Merger and a Watson Wyatt study reporting that half of acquired executives leave within a year of a merger and 75% leave within three years, point to a cause with a potential remedy.

Assessment of employees as part of the due diligence process during a merger/acquisition is beginning to be utilized by firms in an effort to improve the probability that the new organization will achieve planned objectives.

Our view is that the application of assessment instruments should not be limited to companies contemplating M&As. In a real sense, the “routine” ongoing internal reorganization and adjustments that firms make every day more than warrant the additional insight obtained when key employees participate in an assessment process.

Further, the value of personality assessment during the recruiting process is significant. With the cost of a hiring mistake in the executive ranks estimated at over a half million dollars, it just makes good sense to utilize assessment tools to help identify likely problems up front. The overwhelming importance of “cultural fit” to the ultimate success of a new executive cannot be overstated, yet we find that very little serious attention is paid to this critical issue in the typical executive search engagement. At Ansley Consulting, formal personality assessment is an integral part of our routine processes…whether engaged in recruiting, organizational assessment, or succession planning.