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After performing a formal cultural due diligence (ie via survey or interview method etc…) what are the most common next steps to follow to address any notable discrepancies in the results?
I think that most depends on the identified discrepancy. In general i think that the HR department should study a plan and involve the stakeholder of both the acquirer and the target companies in order to address it and identify the best compromise to grant a smooth integration process for both companies.
After the initial Due Diligence on the target, the Acquire/deal inviter should map out the matching and not matching culture elements between the target and the acquirer itself. Then work out what the mechanisms to turn the not matches to matching. A detailed analysis report on the culture due diligence and proposed tactics to apply during and after merger. Culture is something soft, invisible and powerful in long term. Hope we all can get it right while doing M&A.
I believe the next steps after identifying any gaps is to identify what culture should look like holistically and then put together an action plan around building that momentum.
I think after intial cultural due diligence the acquirer can map out the point of similarities and point of differences between both the organizations. What culture needs to be promoted shall be defined, it can have mix of both the cultures or culture of acquiring company or even culture of target company. Then some workshops, engagements, workforce exchange program shall be planned.
I agree with the steak holder involvement. Need their imput here. Senior leadership for sure. As I gone through these modules I have come to realize that my company’s cultural approach varies from pluralism, to mixture, to takeover. Each situation demands a different approach. Key steak holders need to agree on the cultural integration approach at the very least.
it is important to involve stakeholders from both sides – both the parent company and the new company. By doing this it will feel more of a collaborative exercise rather than just being told to “do this”
In my point of view, this deserves a deep risk analysis for each issue founded in previous DD.
Each point listed in DD must mensurate with a score, and for each one makes a risk matrix, a SWOT and SMART analysis. Other tools should be used.
Next this the HR DD take place in identify middle and high management of target company that could undermine the deal AND those who can collaborated and engage and should be retained…common next steps to follow to address any notable discrepancies in the results should be:
> Communicate this to the executive team for NewCom and acquired company
> Flag any changes which are not agreed on long term planning to all functional teams
> Involve HR if this is for employee satisfaction
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