Topic > Case Study on Leadership Succession in a Merger of Peers

Leadership Succession in a Merger of Peers is an article that examines the implications of leadership succession in an extreme form of mergers, a merger of equals, and can provide important results to better understand what allows some mergers to succeed while others fail (Cheng, 2012). Mergers and acquisitions are very common nowadays and only a few of them are successful. Although mergers and acquisitions do not have a very high success rate, many organizations still prefer it because it is used as a cooperative strategy, but nowadays it is used for cooperative development. Cultural differences and merger integration can be considered an important factor for the failure rate, but this study mainly focused on. Co-CEO is formed when a merger situation occurs where a company can create a single CEO. Most of this article compares the leadership succession of different CEOs and co-CEOs, but the bottom line is that leadership succession does not play a major role in merger failure. This article concludes that the choice of leadership succession is not important for how the merged company will subsequently behave, even in an extreme case such as a merger of equals. However, the high failure rate of mergers remains and therefore research should shift attention to other salient factors such as cultural and operational integration (Cheng, 2012). This article supports iGate Patni because instead of focusing on choosing leadership succession, IGate focused on factors like cultural and operational integration which is the reason for their success in merging with Patni.IGate has many outsourcing projects that are being made in various companies. Due to intense competition in the outsourcing field, iGate has lost many outsourcing opportunities, which has created unemployment among iGate employees. When the crisis reached its maximum effect, most employees left the company, creating stress among the remaining employees. Most of the employees lost motivation to work, and managers of different divisions started arguing. This situation was temporary, due to the quick action of CEO Phaneesh Murthy. It solved this outsourcing problem by merging with the Indian company Patni, which is three times larger than its buyer iGate. Patni was a pioneer of Indian IT services and is famous for high-volume, low-value work, but its growth has slowed in recent years. By merging with Patni, IGate solved the outsourcing problem and at the same time resolved conflicts that occurred within the company. This merger also motivates IGate employees because they have become a much larger company. Here CEO Phaneesh Murthy managed to solve every problem of IGate, but the merger also created new problems. IGate and Patni are completely different companies, one is an American company and another is an Indian company, there are many cultural differences between the two companies and the operation methods are also different. The next challenge for