What Happens When Culture Collide

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When Cultures Collide

by Allan Stewart, B.Com, MBA

Whatever organization that has gone through a merger has probably spent a lot of time and coin ensuring that the "numbers" of the new organization will work. In contrast, few carp to look at what will actually makes the new company successful – the people.

Organizations are made up of individuals whose combined attitudes, values and behavior create an organizational culture that is unique to all others. When organizations merge, two cultures are thrown together, and that could result in a collision that will eventually destroy the new company.

On paper, many mergers make good concern sense. One of the "textbook" reasons for business mergers is to utilize the strengths of both original companies to create synergies for the new system. Yet, initially at least, mergers have a negative impact on the new organisation. According to The Financial Mail service's volume, 100 Best Companies to Piece of work for in Canada, it takes three or four years to "re-plant a working surround that employees would characterize as first-class." In the mean time, "productivity goes down" and "the merger (has) a negative touch on employee morale."[i] Worse, at the end of this "getting acquainted" period, the resulting culture might not be the one that senior management wants.

"When organizations merge, ii cultures are thrown together, and that could result in a collision that will eventually destroy the new company."

Senior Managers tin brand one of 2 decisions. They tin wait the 3 or 4 years for "nature to have its course" or they tin take command.

Controlling the procedure involves a number of steps:

ane. Measure the civilization of the ii original organizations. Human Synergistics Organizational Civilisation Inventory™ (OCI) measures the actual culture (the expected shared attitudes, values, and beliefs) against an Ideal one. Culture is measured around 12 styles. These 12 styles tin be split into a number of clusters. First, at that place is a task vs. people split, and then a satisfaction vs. security i, and finally a constructive vs. a defensive split.

2. De-brief each original organization on their existing, pre-merger civilization – its strengths and weaknesses. This will help each side understand their culture, every bit well equally what they are bringing to the table.

3. Share the results of both surveys with all parties. Understanding the other party's civilization vis-a-vis your own is the outset major step in constructively merging them.

4. Decide on an Ideal new civilisation. Defining the new Ideal is easier than it appears. Human Synergistics inquiry has constitute a positive correlation between Platonic cultures (loftier in achievement, humanistic-encouraging, affiliative and self-actualized orientation) and such outcomes as employee engagement and production quality.

5. Develop an activity plan to have the new organization piece of work towards the Ideal civilisation. There are several Causal Factors that have a direct result on culture – leadership styles and practices, Human Resources systems, organizational and job blueprint, the mission, philosophy and values of the new organization. But all of these factors are direct influenced by the leadership squad.

An organisation'due south culture evolves over time or information technology can exist directed by the direction team. Many leaders who come across shortcomings in their present culture often delay tackling the problem. Leaders who ignore culture during a merger, exercise so at their peril. Mergers tin can serve as an ideal goad to initiating cultural change because well-nigh people have the fact that they are going to have to brand changes.

Allan Stewart is the President of Homo Synergistics Canada and has been helping organizations change their cultures for over xxx years. He is considered to be a leading expert on organizational culture, its causes and its outcomes.

[i] * Eva Innes, Jim Lyon, and Jim Harris, The Fiscal Post 100 All-time Companies to Work for in Canada, (Revised Edition), Harpers, Collins Publishers Ltd., 1990. Folio 1.