alexander

Leadership Process Two: Building Alliances 69
transitory—replaced by better deals. If a subsidiary of the
target acquisition does not fit the business model of the new
entity, it is sold off.
Other forms of alliance, like marriage, can be more enduring.
Indeed, this may be the way to guarantee survival.
Marriage is a symbol of alliance building, and symbols may
be a key to alliances, not the merger itself. For example,
when America Online (AOL) and Time Warner merged,
they were nearly equals. Just a few years later, when the
promise of AOL seemed empty, it was dropped from the
corporate name and became just another subsidiary of
Time Warner. Contrast this example with having a Starbucks
in every Barnes & Noble store. This is a symbolic
union—not a marriage or merger.
Integration is essential. The reality is that our world is
multicultural and will become more so. There will also be
those who resist integration, thinking of themselves as conquerors.
Replacing ‘‘Macedonians’’ with ‘‘Persians’’ will go
a long way toward appearances of integration, but it does
not win over the hearts of racists. That is, you may get outward
conformity, but not inner commitment. Leadership
can make the difference, and each situation is different.
Threats are potent. Actions are more potent.
When two insurance companies merged, the corporate
headquarters were consolidated and power was shared. One
firm’s CEO took the helm of the merged entity, and the
other took the job of president. Upon the CEO’s retirement,
the president took over and dozens of top managers were
swept from office, or else they left for their own reasons.
The pendulum swung back a decade later when one of the