Culture themes

Recognise the risks

• A merger is a sudden cultural shock which requires expert and active management if you are to succeed. Mergers can often accentuate cultural issues which may have been tolerated in less pressurised situations.
• Executive focus tends to be on how to integrate the systems, products and processes of the businesses. But taking the time and energy to understand the culture of each organisation –which elements to protect and which to adapt to deliver the merged business goals – is just as vital.
• It’s natural for people to be worried and expect rationalisation. In such situations, the other organisation can be demonised as the enemy, so you may need to focus on managing how people feel throughout the process. Remember however, addressing the happiness of your workforce is not the same as managing your culture.

Action checklist

• Think about having at least one person with culture management expertise on your Merger Team. It’s a good place to start.
• Be clear about each organisation’s current cultural strengths and weaknesses and set a well-defined target culture for the merged organisation. Do your cultural gap analysis in order to fully understand the task ahead.
• Provide space and time for the organisations to understand each other and build respect. Facilitate communication and information sharing across the teams.
• Train your managers on how to manage culture. It will stand you in good stead, not only through the merger, but as a continuing business management capability within your business.

You may be interested in:

• The M&A eBook'.
  
  
• ITAU Case Study.
  
  
• ‘Mergers and acquisitions:
  Emotions as work’ a thought piece on mergers.
  
  
• Merge program: 
  M&As are unique events and our Merge program is tailored to the specific capabilities you will need to manage culture through turmoil.
  
  
• Our approach to culture assessment.