When your organization is involved in a merger, acquisition, or joint venture, two separate corporate cultures will be brought together.
Different philosophies, styles, technology, missions, and visions for the future will meet.
Typically, there are three different ways this "coming together" can occur. First, the two cultures can remain
independent and coexist. Second, one culture can dominate and eventually absorb the other.
And third, the cultures can blend, with characteristics from each culture surviving.
Of these three options listed above, organizational development experts agree that blending the cultures is the most
preferable. However, this type of blending is rarely seen. Typically, the acquiring
company engulfs the acquired company, the acquiring company's culture dominates, and the
acquired company's culture goes subsurface or fades away. Why is this so, you may ask?
Because culture is not seen as an issue - it is not seen as something that could impact the success of a new organization.
But, culture is something that can impact the success of the new organization. And, as trainers, performance
technologists, HR staff, or quality system personnel, you can help the cultures blend by
encouraging the decision-makers in your organizations to support the process of cultural
discovery and dialogue. You can explain to your organization's decision-makers that by
closely examining the two cultures, and opening a dialogue between the employees of the
two organizations, they will be promoting understanding and acceptance among the two groups.
First Step - Conduct A Cultural Self-Assessment
In this first step, ask a sample of your incumbent employees (those with the acquiring organization) to conduct individual cultural
self-assessments. Ask each person to independently describe the cultural characteristics
(see following list) of his or her organization in terms of (a) stories told and
recounted, (b) rituals observed (c) material symbols, or (d) language.
"The following represent key characteristics along which cultures differ:
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Individual Initiative: The degree of responsibility, freedom, and independence that individuals have.
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Risk Tolerance: The degree to which employees are encouraged to be aggressive, innovative, and risk-seeking.
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Direction: The degree to which the organization creates clear objectives and performance expectations.
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Integration: The degree to which units within the organization are encouraged to operate in a coordinated manner.
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Management Support: The degree to which managers provide clear communication, assistance, and support to their subordinates.
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Control: The number of rules and regulations, and the amount of direct supervision that are used to oversee and control
employee behavior.
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Identity: The degree to which members identify with the organization as a whole rather than with their particular work group or
field of professional expertise.
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Reward System: The degree to which reward allocations (i.e.: salary increases, promotions) are based on employee performance
criteria in contrast to seniority, favoritism, and so on.
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Conflict Tolerance: The degree to which employees are encouraged to air conflicts and criticisms openly.
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Communication patterns: The degree to which organizational communications are restricted to the formal hierarchy of
authority." (Robbins, 1990)
Here's an example of how an employee might describe a culture's control characteristic in terms of stories told or recounted:
"Now, I've heard that Manager X professes to be a 'hands
off' manager, but Employee Z has learned not to make a move without checking
with him first."
... how an employee might describe a culture's identity characteristic in terms of rituals observed:
"Our company is like a family. Everyone shows up at the family picnics. Everyone brings their kids to
work on 'Take Your Daughter/Son To Work Day.' And, you know, management just loves it."
... how an employee might describe a culture's reward system characteristic in terms of material symbols:
"Although annual pay increases are always equal for our production technicians, the production technicians
who show lots of initiative and who are very cooperative are the ones who tend to get picked for special teams and receive
other choice assignments."
... how an employee might describe a culture's conflict tolerance characteristic in terms of language:
"We just
don't deal with conflict here. Anyone who does try to resolve miscommunication
or clarify a point is referred to as either too "sensitive" or too 'pushy."
Once your sample group of employees has conducted the cultural self-assessment, you'll then bring them together with new employees
(from the acquired company) and begin a cross-cultural dialogue.
Second Step - Conduct A Cross-Cultural Dialogue
Bring your incumbent and your new employees together in groups of 10 and facilitate as
they participate in the Dialogue. The key to success during this step is to create a
setting in which participants feel like they are "sitting around a campfire" --
where they are comfortable and have time to reflect. The goal of this exercise is to reach
some level of mutual understanding.
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Ask each incumbent to share the results from his or her cultural self-assessment, ensuring that each person is permitted to speak
without interruption.
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Once all incumbents have shared, encourage an open conversation where new employees can ask questions and share how their
culture is similar and different.
Let the differences emerge naturally.
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After a few hours, conclude the dialogue by asking each person (incumbents and new employees) to share one or two insights about
either culture.
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Ask the group to determine if more dialogue is necessary. Schedule follow-up dialogues as needed.
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Go through the dialogue step with other groups of employees until each employee has had a chance to participate.
Providing each incumbent and new employee with an opportunity to participate in a
cross-cultural dialogue is a significant step when beginning to merge cultures. You have
helped open the "doors of understanding." But, it is not enough just to
understand the two cultures. If both cultures are extremely strong and the characteristics
of the two organizations are opposed, then much more work is necessary. Decisions must be
made as to which characteristics will survive the merger and define the new organization.
No doubt, many characteristics from the acquiring company will remain intact, but
characteristics from the acquired company should also endure. Remember, as stated earlier
in this document, organizational development experts say that blending cultures is
preferred. So, attempt to take the finest characteristics from both organizations and
bring them together to create the best of the best.