Step 6: Develop Post Merger Culture Integration Plans

You can’t keep everyone happy when it comes to culture change in a merger. So, here’s the deal. Don’t get scattered trying to address all the cultural preference items people make noise about. And don’t tiptoe around the delicate culture issues if they’re crucial and need to be hit head-on. Focus sharply on what’s mission critical.

Ordinarily, only about 5 percent of the cultural issues truly qualify as mission critical. What does that mean? This small handful of traits accounts for about 95 percent of culture’s influence on operating performance. These are the “vital few.” The cultural matters that remain are more or less noise, the “trivial many.” And it’s a mistake for the organization to get distracted by these lightweight issues. Why? Because this remaining 95 percent that’s basically noise will soak up people’s attention, yet account for only 5 percent of culture’s overall impact on business results.

In this section, we offer research that offers important clues for cracking the code on culture in M&A. Plus, we provide tools that identify the meaningful cultural differences that should be identified in a culture assessment and addressed in a culture integration plan.

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What Questions from the Operating Style Analysis Are Particularly Useful?
What Questions from the Operating Style Analysis Are Particularly Useful?
2 minutes 52 seconds
  • "What are the unwritten rules? A lot of things get accomplished in organizations through unwritten rules, side channels and work arounds.
  • What gives a person power here? It gets to the core of what is valued and what makes people successful. Sometimes it is not good behavior.
  • What do people hold sacred about the culture ..."

 

 

What Do People Like about the Operating Style Analysis?
What Do People Like about the Operating Style Analysis?
58 seconds

"The series of simple questions can identify the problem areas quickly... the 5% of cultural traits that you need to address."