How to avoid cultural integration

This topic contains 2 replies, has 3 voices, and was last updated by  David Castell 6 months, 2 weeks ago.

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  • #116338

    In the Integration Phase one that critical is cultural integration.
    How we should do the cultural integration and avoid the failure so will make the company perform well.

    Regards,
    Indrama

    #116413

    CHEE KOK SENG
    Participant

    Step 1: Diagnose how the work gets done
    As early as possible in the merger process, leaders must learn about the culture of each of the companies involved.

    Step 2: Set priorities
    Once leaders understand the existing cultures, they can begin to set the immediate cultural priorities, which should be based on two focal points. The first is on areas where the culture can help maximize the value of the deal (such as moving to a higher-performance culture to achieve ambitious sales targets). The second is on areas where companies must manage meaningful differences in ways of working to build a single high-performing organization.

    #116458

    David Castell
    Participant

    The culture match analysis has to be done at a very early stage by the acquiring company, starting even earlier than the first contact of the target company. This will be based on market and competitors available information, discrete interviews, etc.

    During the acquisition process, management will have to deep dive in the cultural aspects trying to identify aligned areas as well as areas where they might complement each other or even allow them to grow stronger as a unite organisation.

    Avoiding a failure due to cultural miss-match will be the consequence of having done a deep cultural due diligence.

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