Archive for Organizational Development

Culture Matters in M&A

ROIEvery company has their own culture – basically, the manner in which employees behave, follow common norms and interact with each other – this includes values, behaviours, assumptions, and the understanding of a common mission. The culture makes up a company’s ‘personality’. Within that, you will find teams and departments that have their own slightly different culture from the overall company culture, ‘mini’ cultures of a sort.

Typically there are many similarities between the two, although it is possible for companies with a highly competitive culture contain mini cultures of collaboration and entrepreneurial kinship. For example; where the operations are somewhat cut-throat yet the development team isolate into a unified and solid group of collaborators.

Most companies have a pretty good unwritten understanding of their own culture and with just a few questions are able to define the existing culture fairly well and then work with us to identify areas of needed growth or change. It is when companies merge or an acquisition has been made that culture becomes a significantly different conversation. Sadly, few mergers and acquisition (M&A) pre-work evaluates the differing cultures to identify risks associated with the merger or acquisition.

The greatest risks associated with bringing two companies together often lay within the strongest reasons why two companies want to join forces in the first place:

Financial – M&A selection is vital to understanding the financial benefits and possibilities due to a complimentary, formerly competitive or growth opportunity into play.

Brand Association – There are some great benefits to leveraging a solid and well-loved brand to create a stronger and more powerful company offering to the customer.

Knowledge – Picking up or combining forces to obtain or grow the technical or industry knowledge for a company, add technical competency or expand an offering based on an additional functionality desired.

All the above sounds pretty great, but what’s great on paper is not always deemed so great by the people being asked to live the change. In fact, the people with the greatest power to make or break a merger or acquisition can be middle management through to front lines and yet those areas are the most often ignored within the M&A transition plan.

Understanding cultural risk, cultural collision and people strategy are vital in making certain that large investments such as M&A actually realize their return on investment.

Transitional planning is needed right from the beginning of a merger, preparing for culture clash or shock, planning around every small change that affects the manner in which people from both organizations do their everyday work, creating a change plan that involves a solid communication strategy, all of these are vital in an M&A program.

Based on research, where does a good transitional plan begin?

  1. Organizational Culture Assessment: a system of shared assumptions, values and beliefs which govern how people behave in organizations. Evaluate each company and determine any commonalities.
  2. Evaluate the 8 Organizational Cultural Characteristics: evaluate the priority that the company values would assign to each of the following organizational characteristics.
    • Innovation – risk orientation – evaluate priority high, moderate, or low.
    • Attention to Detail – precision orientation – high, moderate, or low value?
    • Emphasis on Outcome – achievement orientation- high, moderate, or low?
    • Emphasis on People – fairness orientation – high, moderate, or low?
    • Teamwork – cohesiveness orientation – high, moderate, or low?
    • Aggressiveness – competitive orientation – high, moderate, or low?
    • Stability – maintenance orientation – high, moderate, or low?
    • Agility – change orientation – high, moderate, or low?
  3. Develop a transitional plan based on a comparison of both companies developing action items that address commonalities and friction points.

These are steps for the beginning while the purchasing company is assessing financial risk. Companies putting out money to purchase or merge with another company should understand the cultural risks of the deal. Comparing the two organizations is vital in knowing just where to begin with a transition plan.

Do you have examples of organizations that have merged and failed to do the cultural assessments and develop a solid work it into a solid transition plan?

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Patti Blackstaffe works with people and organizations in implementing sustainable change in a rapid changing world. Her key areas of focus are change management solutions both at the project level and the organizational level. She has over 10 years of experience in change management, has worked on projects that impact 50-30,000 people in both large and small organizations. Patti brings experiential design thinking into all her projects ensuring solutions are relevant, simplified and the implementation makes sense.

You can reach Patti at 1-855-968-5323

Contact us here to work with us.

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(Note: 8 Organizational Culture Characteristics from Professor Roger N. Nagel at Lehigh University – our assessments and research utilizes these characteristics in addition to other organizational research.)

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Are You Asking the Right Questions?

Question“We find … it’s much more important and difficult to ask the right question. Once you do that, the right answer becomes obvious.
~Amory Lovins

If you want to know more about why people do or don’t change, then ask more questions.

When working with organizations and teams, it is important to first listen and understand before building plans and developing programs for them. For organizations that do not have coaching as a mainstay offering for their leaders, they may be surprised to hear it is those coaching methodologies that open the door to understanding. For a large company, it is definitely worthwhile for key individuals and leaders within the organization to be coached, and for those in charge of organizational development (OD) to have some coaching training behind them.

There is a generalized stigma around coaching that can be hard to shake and it’s often referred to as that ‘airy-fairy’ soft-skills stuff. There is nothing soft about coaching!

If you remember being figuratively pinned to the wall as a teen in high school as some wise adult helped you learn to stand up and take responsibility for your own actions, you can easily recognize the value for coaching in any environment. Through great questions, a coach can dig deep enough to get to the root of why you choose your current thought patterns and reactions, helping you better understand where you fit among the dynamics of a multifaceted team of individuals. There is nothing soft about it. The secret to a coach’s success is the training they receive within two areas:

  • learning how to ask questions and
  • the right questions to ask.

This is why people in Change Management (CM) are also effective coaches. One who seeks to understand the stakeholders and the stakes involved in any change initiative is best served by first knowing the right questions to ask. Great questions return great results, further creating introspective reasoning for the individual who is providing the answers. The people being asked begin to think a little more about what they do and why they do it, eventually getting to the heart of why, within a change initiative, the stakes are so high for them.

This doesn’t mean the stakeholders are all in an ‘organized coaching program’, but rather, through a varied series of meetings, one-on-one discussions, facilitated group sessions and other forms of analysis and risk analysis, the CM professional is able to dig deep to the heart of any challenges that may inhibit change.

Change is inevitable, but change as a push mechanism is rarely successful. Change initiatives that take into consideration all stakeholders and build a plan for change that motivates and inspires people to move forward from resistance to desire find greater success. It is my experience that there is usually a lot more to resistance than what is initially shared, and a little coaching methodology can certainly loan itself to finding the greatest resistance and helping the people within an organization work through it.

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patticroppedPatti Blackstaffe works with people and organizations to develop
Happy Workplaces world-wide guiding them toward mastery and leadership
through consulting, advising, coaching, speaking, and delivering training.

You can reach Patti at 1-855-968-5323

Contact us here to book for Idea Sessions, Change Management, Executive Coaching or Team Development.

Idea Sessions | Change Management | Executive Coaching | Team Building

 

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