>We Have a New Website You've come here looking for insights about organizational culture. You've found our original web-site. Please visit our newly launched site. Visit the new Culture-Strategy Fit Website!

>culture due diligence

Chairman & CEO of Berkshire Hathaway, Warren Buffett, has used the fairy tale analogy of a kiss from a beautiful princess supposedly releasing a prince from a magic spell when describing the aspirations of many organizational mergers. However, a Business Week analysis indicates that 61% of buying firms in M & A's destroyed their own shareholders' wealth. Whether an organization is private or public sector, the risk of being left with organizational 'toads' is significant.

When combining organizations, there is potential for ‘culture shock' when feelings of personal safety, personal power, trustworthiness of others, fairness and social dynamics get damaged early in the transition period. Added to this may be ‘culture tensions' from differences in the degree of formality and standardization that signal that the way of working will dramatically change. While culture synergies may be strong, culture differences can lead to a process called dynamic conservatism that operates to protect the current culture. New leaders may move into the organization, talent may depart but the culture resists change. A ‘culture clash' can emerge draining organizational adaptation, productivity and innovation. Failure to attend to culture can seem to magically turn ‘princes' into ‘toads'.

How can we help?
Rather than waiting and wondering if such issues will emerge, we can help you establish a proactive approach to culture due diligence and transition to:

• Identify early in the process if the two organizations' cultures are sufficiently aligned to proceed to M & A
  
  
• Capitalize on culture strengths and manage culture tensions proactively
  
  
• Identify the leader behaviors and organizational practices that could be the source of culture clash that need paying attention to
  
  
• Assess the risks of culture differences
  
  
• Make informed decisions about the degree of integration of groups with substantially different cultures
  
  
• Use leaders behaviors as levers to shape a culture that supports the future needs of the new entity
  
  
• Maintain productivity and morale and retain talent
  

“We've observed many kisses, but very few miracles. Nevertheless, many management princesses remain serenely confident about the future potential of their kisses-even after their corporate backyards are knee-deep in unresponsive toads.”

Warren Buffett

Signs that culture clash may be emerging