Experienced HR Specialist Irene Makrillos, Director of HR Consultancy 12IC, shares key insights from being responsible for leading the integration of 3 different organisational cultures within an acquisition situation.
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My key learning nuggets from the conversation:
Placing a describing metaphor on the differing cultures helps to carry a deeper understanding of each culture and the differing characteristics (e.g. Elephant, Tiger and Rabbit)
However, a describing metaphor, and true understanding, can only be reached by actually spending time with the people of each organisation
Acknowledge the memory contained within each culture – both contents and longevity
Often cultural integration considerations are an afterthought in mergers and acquisitions, not forming part of the due diligence process
Ask yourself ‘What is the cultural plan?’ make the Tiger and Rabbit Elephants (full assimilation) bearing in mind that each business (and culture) has been acquired for their individual characteristics
While assimilation was the original assumption, it became clear that the best course of action was to maintain the individual cultural characteristics and work out how they could operate together to get the best out of each
Therefore, key considerations when forming a plan were:
Individual cultures influence the scale, direction and execution of the policies and procedures of each organisation
Each culture is affected by the number of employs – lower numbers and closer connections between employees versus higher number and less connection between employees (is this linked to the Dunbar number?)
Recognise that any change will impact employees personally and their response will be deeply human
When devising the Cultural plan it is important to scenario test and look into the future of how it will all work in simple practical terms and day-to-day impact
Key components of successfully bringing cultures together included:
Communications, transparency and engagement in the process when managing the significant change of merger and acquisition to maintain employee engagement, ensuring talent retention and generally gauging where the employees are at during
Continually consider the actual human journey
Creating joint working groups for process and policy alignment
Be purposeful about merging any opportunity to bring the people of all organisations together whether physically or through events allowing a more meaningful way to interact and integrate
Having a cultural ‘temperature check’ tool was an important tool to measure progress
Recognise there will always be decisions made from a ‘business point of view’ that won’t assist with managing culture change
Also, that not all leaders will want to change in the process
Note that there are many cultures at play within an organisation not just the organisational culture - each group (formal and informal) will have its own sub-culture, which needs to be explored with a similar level of attention
Often most human behaviours are driven by fear in situations of great change – fear of losing jobs, position, authority
Human responses in change are varied and their journey is not linear
As a culture change practitioner, it is easy to look at the work from a separated or removed point of view and through theoretical lenses – this is not helpful.
Your own personal brand and how you show up has a key influence in a culture change situation.
The more someone is aligned within themselves the greater impact they have on their surrounding culture and culture change
Culture is a live dynamic entity (akin to considering what would be said at a eulogy)
Parallels can be drawn between an individual-to-individual interaction and between an individual-to-culture interaction; they are the same in terms of how they make you feel – life affirming or life sapping?
Culture is real.
You feel culture even though it is intangible
A there is a strong corelation between organisations that grow and succeed and a strong life affirming culture and visa versa
Each individual impacts and is impacted by culture – everyone is an active player within it, each with their own story, past and ways of being influencing how they show up in it
Policies and procedures are not culture, they are organising principles
There is pressure balancing the financials/return on shareholder value at all costs against managing the culture and the people within it
Both are dependent upon each other
This is further underlined particularly when dealing with whatever ‘fire’ (real or imagined) leaders and managers have to deal with at a point in time
Cultural change takes time!
Cultural change is not a simple task that will reach an end and then be done
Managing culture does need dedicated time – it is continual and needs continual attention and prioritisation
M&A Integrating 3 Cultures together - Irene Makrillos