The Success Of The Merger

1818 Words8 Pages
Background The inception of Bancolombia has been through a myriad of arduous processes in order to emerge as Colombia’s largest bank by assets (bnamericas, 2014). From its humble beginnings as Banco Industrial Colombiano (BIC) to its strategic acquisition with Banco de Colombia (BC), which became formerly known as ‘old’ Bancolombia. The success of the merger was largely attributed to Jairo Burgos who later becomes the integration project leader (IPL) of Bancolombia-Corfinsua-Conavi integration process, also officially known as Bancolombia (Cajiao, 2011). Introduction Success in a merger and acquisition (M&A) can be measured in various ways (e.g. financial ratios or value creation). However, this essay will mainly attribute success to human resource management’s (HRM) positive integration of culture and strategy. Therefore, this essay seeks to discuss and analyze the case study critically in order to bring light into the success factors of the merger, which includes emotional empathy, and operationalization of values, factors of failures and attainment of management talent and new capabilities. Failure of Mergers Mergers and acquisition has always been a huge challenge in business. However, in order for businesses to thrive and succeed in competition, it has become one of the most important strategic tasks to undertake. According to Briscoe, Schuler and Tarique (2012), the two main reasons for the failure of mergers are the negligence of the role of human resource (HR)
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