Define Company’s Culture to Avoid Post-Merger Clashes
When questioned about the on-going poor performance of the majority of US companies that attempt a merger or acquisition, the M&A experts agree that post-deal
“culture clashes” contribute in a significant way to the demise of these deals. The problem for the researcher is determining what is meant by the use of the term. Culture is never easily defined. It includes how the people who share the same culture dress, what they eat, how they communicate, and what they believe. It is a comprehensive system of behavior that is dictated by group acceptance of certain rules – some written and some informal – that have developed over time and that govern the culture. A factor that makes culture interesting, and sometimes confusing, is that the rules governing behavior operate on both a conscious and subconscious level. The root of the word “culture” is “cult” – a group with obsessive devotion to or veneration of a person, principle, or ideal.
We tend to construe cult-like behavior as a negative manifestation of mind control or, at minimum, a loss of some degree of independent thinking. And yet, our lives have been impacted by family culture, socioeconomic culture, and a national culture. To some extent, we have all been conditioned to behave in certain predictable ways that are deemed acceptable based on shared cultural norms and we can be uncomfortable around or feel threatened by others who are not aware of, do not understand, or do not accept our rules.
All companies have a “company culture” and employees who work for a company can tell you what it’s like to work there. Each culture lends contextual meaning to certain standards, e.g. being “on time.” Arriving “on time” in certain company cultures means arriving at least 10 minutes prior to the appointed time for a meeting. And woe to the unsuspecting new employee arriving at the exact time of the meeting only to learn that
“on time” is universally regarded by co-workers as “late.” In other company cultures, arriving within 10 minutes of the announced start time, although technically late, is still construed as “on time.”
Company cultures can have as much impact on employee behavior as other types of cultures, especially for long-term employees. The movie Castaway starring Tom Hanks is a brilliant illustration of the powerful influence of company culture on a loyal employee. Hanks is a senior manager with FedEx. In the FedEx culture, employees have one mission – To deliver packages intact to the right destination on time.
On a business trip abroad, the company plane crashes in a bad storm and Hanks finds himself the lone survivor on a deserted island. His first act is to retrieve each package and find a shelter for the packages where they could be safely stored. After the packages are secured, he contemplates his own survival.
Now imagine that you are a survivor along with Hanks on the island. Almost everyone would expect that a life-threatening situation would dictate opening all of the packages immediately! You move to pick up one of the packages. Hanks steps between you and the packages. And there you have it – an honest to goodness culture clash!