What happens when a suit-and-tie values driven organisation acquires a t-shirt and tattoo-friendly design hub that feverishly guards its people’s creativity? Well, if you are not careful you might get a culture clash - that ambiguous melange wherein your people do not understand the underpinnings of the newly-branded company they work for and where attrition rates of employees start to tick up dramatically. In the past, we worked on a project that had the elements described above, and here are the four strategies we implemented to ensure the risks of cultural misalignment were mitigated:
Cultural Due Diligence: Conducting cultural due diligence prior to the merger is essential. Understanding the similarities and differences in organisational cultures can inform integration strategies and enable proactive planning. Assessing values, communication styles, decision-making processes, and leadership approaches can identify potential areas of synergy or conflict. Usually, this is conducted through devising culture assessment questionnaires and workshop events to garner the pulse of the two companies looking to merge and understand what the employee population of each values on an organisational level.In the merger between Renault and Nissan in 1999, both organisations acknowledged cultural differences and conducted thorough due diligence. Nissan embraced Renault's commitment to teamwork and continuous improvement, while Renault recognised Nissan's focus on speed and efficiency, resulting in a successful integration. They ensured that cultural alignment was a priority from the early stages of the merger.
Leadership Alignment: Leadership plays a crucial role in setting the tone for cultural integration. Leaders must model the desired behaviors, communicate openly, and actively engage employees in the integration process. A unified leadership team that represents both merging organisations can help bridge cultural gaps and foster a sense of unity. When Marriott International acquired Starwood Hotels & Resorts in 2016, the leadership teams from both organisations worked together to create a unified vision and set of values. This collaborative approach ensured that cultural integration efforts were driven from the top and cascaded down throughout the merged entity. The leaders served as role models, demonstrating the importance of embracing diversity and creating a harmonious work environment.
Clear Communication and Employee Involvement: Open and transparent communication is critical during post-merger integration. Sharing information about the integration process, timelines, and changes helps alleviate employee concerns and builds trust. Actively involving employees in decision-making processes, such as forming cross-functional integration teams, fosters ownership and reduces resistance. During the merger between United Airlines and Continental Airlines in 2010, the integration team established communication channels to address employee questions and concerns promptly. They also involved employees from both organisations in creating the new company's mission, vision, and values, ensuring a sense of shared ownership. This inclusive approach helped employees feel valued and contributed to a smoother cultural integration process.
Cultural Integration Programs: Developing cultural integration programs can facilitate the blending of different cultures. These programs may include workshops, training sessions, mentoring programs, and cross-cultural events to promote understanding, collaboration, and respect. When IBM acquired PwC Consulting in 2002, they implemented a comprehensive cultural integration program called "Integration@IBM." The program involved workshops, training sessions, and mentoring programs that encouraged collaboration between employees from both organisations. This initiative helped bridge cultural differences and build a unified organisational culture. It provided employees with the tools and resources needed to adapt to the new environment and fostered a sense of belonging.
Merging different cultures in post-merger integration periods is a complex process that requires careful planning, effective communication, and proactive engagement. Organisations that successfully navigate these complexities can leverage cultural diversity to drive innovation, employee satisfaction, and overall business success. By understanding the challenges, implementing thoughtful strategies, and learning from successful examples in recent history, acquirors can enhance the chances of achieving a successful cultural integration after an acquisition. It is crucial to recognise that cultural integration is an ongoing process that requires continuous effort and commitment from all stakeholders involved.
Comments