[Gregg Hardin]

How does your organization prioritize cultural awareness during post-merger integrations? And, specifically, what steps are taken to ensure this is successful?

[Joana Pimentel]

Hi Gregg.
I was reading Rodney’s post about how to make Leadership to Prioritize Due Diligence in M&A and thinking that are a lot of similarities in the challenges both situations pose. I guess regarding cultural awareness it starts with making it visible to leadership the impact that this knowledge brings to the process. And the easiest way of doing that is to share clear examples of situations where cultural differences were the root cause for tension and how being aware of those differences was key to find a middle ground solution.

[AD]

Those are the steps that I’ve seen driving a successful integration:
Step 1: Acknowledge and Honor the Past and Present (focus on similarities vs. differences)
Step 2: Commit to a Shared Vision of the Future
Step 3: Highlight the path to the new Future

The emphasis should be on learning from each other and capitalizing on each other strengths.
It’s also beneficial to create a cross-companies lead team where both cultures can converge and be represented.
Moreover, anonymous surveys throughout the process are a great way to get the pulse of the situation.

[Tirth]

It is important to understand the culture of the region where the PMI is being conducted. The impact of any layoffs on the wider market and their regulatory implications. Post that please walk into the common vision of the company.

[Akira Morikawa]

Start by conducting a cultural assessment during the early integration phase. For example, forming cross-functional cultural task forces, providing tailored training programs to foster mutual understanding and shared values, using feedback mechanisms like anonymous surveys to track progress and adjust strategies.

[Author]

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