Dimensions of cultural integration in M&A
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The importance, but also challenges of cultural integration in M&As have been discussed in the forum many times. I’m now looking for practial advice which cultural dimension could be assessed, e.g. for the Cultural Due Diligence. I would like to encourage you to share your ideas and experiences, I’m sharing below some examples for potential dimensions that I’m aware of:
– Communication types incl. channels, frequency
– Organization structure/ Reporting lines
– Ceremonies and events
– Leadership role and style
– Autonomy Decision-making
– Goals and measures
– Rewards and recognition
– Performance orientation
– Official corporate values and principles
– Risk taking behavior
– Physical environment
– Operating model
– Processes and Systems
…I agree that cultural DD is important. In an earlier post I suggested that even before executing a contract a seller / buyer should spend some time understanding each other’s approach as it could save considerable time in negotiation tactics/ big ticket items for the parties if there is an early understanding of intent. I agree that key are leadership styles/ level of autonomy, most recently policies around WFH, systems of promotion and risk appetite of an organization. Management Meetings during DD would be a good avenue to start to understand this culture.
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