First date dynamics – four phases of cultural integration
Jo Thomson - Managing Director of Procter - 24 Jan 2012
New relationships can be exciting and nerve wracking for everyone involved so how do we approach the prospect of two companies merging into one unified culture?
Noted Harvard Business School Professor Rosabeth Moss Kanter talks a lot of sense in her article about marriage being a little like making successful business alliances and some of it applies to newly formed cultures that result from mergers and acquisitions.
Before anyone gets on their knee to ‘pop the question’ we must consider a few essential steps that should not be rushed while getting to know each other for the first time. What you do during this phase normally sets the stage for what follows – maybe wedding bells...
First dates can be loaded with ‘expectancy’ – will she/he like me and will I like them? Is this person going to be ‘the one’ or will I want to run for the hills before the wine and breadsticks get to the table?
Possibly the worst thing that two companies can do at the offset of a new relationship is to sit in a workshop or training intervention – it’s a passion killer, a wasted opportunity to fan the flames that will secure future success for all involved.
Leadership is crucial, in fact Edelman’s Trust Barometer launched in January 2012 - claimed that organisations need to move out of having a “Licence to Operate” into a “Licence to Lead”. However before leadership, the first and longest practical activity is a period of exploration with no fixed agenda or timeline – yet allowing it to happen in a controlled and structured way. This journey of discovery is a good investment of your time because it will provide a solid foundation on which the partnership can stand.
At Procter we use a model for cultural change which has been designed based on real world experiences – not using theory. At the beginning of this journey of discovery no-one, not even the CEO, should know the outcome. This is an unusual behaviour and mindset to embrace, particularly in financial services where every last ounce of action is governed and monitored. Forcing the issue or being “command and control” about culture is a contradiction in terms. So what’s the best way forward for cultural integration?
Phase one – Know where you are
Something has to happen first, what should it be? Clearly defining the vision is important however should it be the first activity? There's no harm in the senior leaders having a kick off discussion about where you want to be – however there is more value in getting out there into the organisation and looking, seeing, hearing and feeling what the vibe is.
It’s important to establish –
- what people feel optimistic about as well as the things they are nervous about
- how much people understand about the practical changes that may be made along the way
- what their recommendation is for aspects of their legacy culture that should be protected and nurtured versus those that they'll be delighted to wave goodbye to.
For example, is there a sense in the company acquired that everyone is feeling exhausted, sick of uncertainty, or needs a “holiday” before rushing headlong into something new?
Is the new business owner champing at the bit to get in there and deliver?
To achieve true cultural integration a joint effort is needed by both parties. In our experience this is fulfilled collaboratively by the senior leadership team, a cross section of stakeholders at all levels representing differing disciplines and an external independent (and neutral) eye. It is NOT about asking a question, listening to the first (often stilted) answer and then launching into an opinionated description of their world view.
This activity should always be summarised and published – like a blog reflecting current day thinking – and again referring back to the Edelman Trust barometer research – should be “radically transparent” – in other words – showing the good, bad and ugly to improve on.
Phase two – Know where you are going
Key here is collaboration. Any good relationship is based on fair and equal footing – every opinion counts. Sometimes you get what you want and sometimes you have to compromise – as we all know from our personal lives! To make sure this phase is successful the key leadership team needs to understand the journey and potential destination so they can start flying the flag at a local level.
Keeping the majority of people in the dark breeds suspicion and compounds some of the challenges identified in phase one. What aspects of your current culture are you unwilling to move on compared to others that you are willing to discuss, shape, guide and modify to suit the new corporate culture. This is a conversation (and activity) that should be happening across the organisation at all levels, not just the boardroom, because you want to create a ripple effect and some powerful momentum.
A consistent view of what’s happening is as crucial as the credibility of knowing where you are going. The strength of conviction in your destination will stand you in good stead from a sustainability perspective – how long it is likely to last once up and running – how can you make it stick? We have some key success criteria for making it “sticky”.
Is it –
- Something worth “fighting for” – helping people to understand that the sum of the parts is greater than the whole.
- More than just a pretty face – you can’t always read a book by its cover and this should be more than what’s on the surface. It’s easy to hide behind clever visuals, spin and marketplace presence however the secret to longevity is having a pragmatic action plan where everyone understands their role.
- Believable – do you believe in where you are going? Does everyone believe in it? How does your collective strength of conviction manifest itself?
Phase three – Making it happen
Following the plan can be a joy in the good times and worrying in the challenging times. If there is commitment and senior managers live and breathe this relentlessly and consistently – then there is a much higher chance of the good times rolling. Even when the bad times come – partnerships are able to ride through the storm if there is a good foundation in place.
Some of the things that make this phase even stronger and help you to flourish – aren’t exactly rocket science – however generally tend to get de-prioritised over time as the “nice to do” or “when I remember” or even worse, “when something’s bugging me”.
These activities are specifically
Giving feedback – we don’t mean praising people when they’ve done a good job (although that is important) or the practice of catching people doing things right. We mean regular, specific, meaningful, motivational and formative feedback. Living and accepting a feedback culture does not come naturally to some organisations – and can often be the downfall for growth as cultures become stagnant, less productive and at worst destructive.
Coaching – working in a culture where structured and developmental coaching sessions are normal for everyone, cross functionally and through the hierarchy – is an empowering and positive place to be. The opposite extreme is living in what Harvard describes as an “alpha culture” – where defensive barriers are put in place inhibiting growth or mitigation.
Understanding the whole person – recently we’ve been researching what impact there is in understanding the whole person, not just the employee. Much as it’s important to tune into key aspects of an employee’s personal life to know how best to create the motivational climate – more important is understanding what connection the person may make with the new culture. Is there still a strong value connection or is there need for some calibration?
Phase four – feeling good
Finally – we’re all pretty good at celebrating success – enjoying the moment when we’ve got it right. In the last few years these moments are more noticeable and therefore memorable. What’s key for us at this stage is celebrating the small changes, things that may go unnoticed or just taken for granted. We believe that it’s the small things that make a big difference – as there are many more opportunities to celebrate and this creates a much wider ripple effect than one big get together. Small step changes that people make towards new world culture should be pointed out as they can be huge in people’s working lives. Celebration avoids complacency setting in.
Assuming your first date has gone well, you can look forward to growing a more serious relationship – just remember that your partner will feel just as nervous as you do.
Thanks for reading - if you want to discuss anything you have read in this article please give me a call.
Jo thomson
for more industry insight follow me on Twitter @ProcterExchange
