M&A: Cultural analysis as foundation for integration of acquired company.
Analysis of both organisations in an acquisition should ensure a holistic and smoother integration process.
Understanding the issue
Merger & Acquisition
A global consultancy firm acquired an American organisation to be merged with their American branch. With the desire to ensure a successful integration, an extraordinary focus on cultural adaption was prioritised. Therefore, an analysis of the organisational culture in both organisations was initiated to identify levers and challenges for realising the synergies between the companies.
The challenge was that the focus on culture has only been used once before in a merger, but without sufficient executive buy-in and follow up. For this reason, an added focus on engagement of the top-management throughout the entire process was planned.
Proacteur’s proCulture© tool for cultural insight focused on:
- The Data collection to cover samples from all areas of the companies including all levels, business areas and regions. This way the data was fully representative of both organisations.
- Communications to go out to the whole organisation to ensure that everyone was informed about the initiative and understood that the intention was to ensure a successful integration with respect of all areas and concerns.
- The priority of the analysis was highlighted by conducting interviews at key office sites and by activating top-level management.
- Engaging the executives in the process of prioritising efforts and preparing action plans based on results of the findings.
Even prior to the findings and reports, the effort showed great value by making the employees positive about the extraordinary prioritisation of cultural synergies and on premise participation during the process. The employees responded positively to the initiative which they considered a sign of leadership investment in their culture and well-being by choosing effort to accommodate their concerns about the integration.