[Mikael Ekblad]

What would be your advice on cultural integration to the PMI team in the following situation: A large Asian corporation has acquired two European small-mid size companies to embark on a growth journey in a new space of the industry. The two European companies have some experience of the new “space”, but fairly limited. It is clear to all parties that the culture needed to be successful is very different from the acquiring company culture (hierarchy) and changes are also needed in the other two (clan and adhocracy). On paper, cultural change is important , but in reality there is clear lack of sponsorship as the outer world is seen as more important in the current harsh business climate.

[Patricia Joye]

I believe that a full cultural transformation is unrealistic right now, but a targeted, business-driven approach might be more effective. The PMI team should focus on the smallest set of cultural shifts that will unlock business performance in the new space, demonstrate early successes, and let those successes organically create the sponsorship towards cultural change that seems to be currently missing.

[Shane Bullen]

I don’t have all the answers either, and I’m keen to see what others contribute. In my experience, cultural alignment can be challenging even when two businesses look similar in ways of working and practice. Add in country and operating‑culture differences, and the complexity steps up again.
My starting point would be a whole‑of‑organisation scan to identify the attributes that define each firm’s identity, the “secret sauce” that underpins client outcomes, quality, and speed. Preserve those differentiators. Then, for less critical attributes, create alignment where it genuinely supports the combined strategy and improves coherence without eroding performance.
Use the pre‑sale synergy thesis as the decision lens. Standardise where it accelerates value capture or reduces risk; adopt‑then‑adapt where the target’s approach is superior or mission‑critical. If the unique value of the deal rests on the combination—bringing companies together to deliver something distinctive, put more emphasis on deliberate cultural alignment from the outset. Apply a simple “can it wait?” test: if a change isn’t essential to early synergies, risk control, or client continuity, defer it and focus energy on the few cultural shifts that matter most.

[Georgina QUIROZ]

In a moment where leaders are focused on external pressures, the PMI team can make cultural integration real by keeping it simple: shape a few key behaviors around the business goals, show how they make daily work easier, and encourage leaders to model small actions that prove the change is happening. Even tiny visible steps build trust and momentum. Sometimes a few quick wins add far more value than getting frustrated by the attempt to drive a full cultural overhaul.

[Mutahira Khan]

This is a great discussion, and the “can it wait?” test Shane mentioned is an awesome starting point. I’d like to add that the strategic intent of the acquisition may also be in play here.
Especially when a larger corporation is acquiring several smaller businesses, the primary goal might be a short-term “subscriber grab” or meeting quarterly shareholder expectations rather than long-term synergy. In that case, a full cultural overhaul may not just be difficult, it might be unnecessary. In a “stand-alone” model, keeping the target’s culture intact can actually preserve their “secret sauce” and prevent talent attrition.
But yeah, deferring or skipping cultural integration carries significant operational risk (similar to Air India case). Business Units are fragmented and do not communicate, leading to duplicated efforts and missed cross-functional collaboration/innovation opportunities, in addition to HR and cultural misalignments.

[Mikael Ekblad]

Many thanks for your advice and thoughts on this matter! The first step will be to revisit the original business strategy including an industry and company analysis as the outside world has changed dramatically the last few years. Who is making money and, if so, how and where can we make money. When a new decision is taken I also think it is important to agree on what a culture that will be supporting the new objectives and strategy should look like. I think that could support the implementation by bringing more clarity and ownership to the change without overdoing it. A new CEO stepped in two weeks ago, so how we will proceed is yet to be seen.

[Miguel Coelho]

Hi Mikael,

I would add to Mutahira’s point and reinforce that the strategic intent of the deal is critical here.

For example, these deal may fit within:
– Accelerate market access : in that case the focus in more on revenue synergies where the targets complement your product portfoli and/or access to distribution channels
– Commercial bet to pick winners earlier: maintain the targets at arms lenght while providing capital and relevant skills to grow
– Commercial bet to transform the business model: here you need to deign the joint vision and op model from scratch

Cultural integration then need to follow the pace of the need to integrate, otherwise how can you achieve the synergy case? However, the pace depedends on the granular intent of the deal and the premiums paid for the targets.

[Gilberto]

Such different cultures cannot be realistically be merged overnight and requires sensibility from all parties to not have one imposed over the other, but rather have a staged absorption. The most important factor is to ensure that synergies are reached soonest and avoid attrition which may cause negative impact to the business. So the comment from Mutahira about the Air India case is a good reference considering the key operational risk which needed to be addressed.

[Michal Rekosiewicz]

To add on top of what has been said already, we have to be aware of how deep the cultural differences are generally between Asia and Europe. I’ve been recently involved in an acquisition that happened the other way round and the way people from both cultures think, work and make decisions was astonishingly different. For example, Asian entities on the management level tend to take decisions much faster, act quicker and be more willing to take risks to attract new business. For Europeans it often comes as a shock. Also what I noticed is that in Europe much more emphasis is put on how employees feel about the changes, while in Asia it’s more towards “the ends justify the means”. Implementing a cultural integration in a full form for a contrast situation may lead to a disaster. Adapting to local habits (on all fronts – people management, sales, customer service, etc.) has to be always considered.

[Hassaan Khan]

Secure visible, ongoing executive sponsorship by tying cultural integration directly to measurable business outcomes in the new growth space, empower a cross-company leadership coalition with real decision rights, and protect early “lighthouse” projects that model the target culture so change is demonstrated in action, not just described on paper.

[Sujit Prasad]

In my view, cultural integration simply cannot wait. Financial systems and operational processes can be aligned on a timeline, but culture starts influencing outcomes from day one. If leadership delays addressing cultural alignment, uncertainty, silos and mistrust can quietly build beneath the surface. Ignoring it or postponing it often makes the process costlier later, both in morale and performance.

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