The "How-to" Guide for Assessing and Integrating Cultures that Will Create Successful Mergers and Acquisitions "An early focus on culture integration, beginning with a solid cultural due diligence. was a critical success factor in our integration with Compaq. This book provides helpful models and tools for getting it right"
-Anne Murray Allen, lead, culture integration, Hewlett Packard
"Time and time again, mergers fail because of the lack of the new organization's ability to integrate the human capital. Typically, not much more than lip service is given to combining the two organizational cultures beforehand. It never shows up in spreadsheets and rarely in integration Gantt charts. Carleton and Lineberry provide a "how-to" guide for assessing culture pre-merger and maximizing on it post-merger. This is a must read for anyone considering a merger, large or small."
-Owen Garrick, MD, co-head, mergers and acquisitions, Novartis Pharmaceuticals
"This is an important contribution to an important field. The authors have provided lots of checklists and how-to guides that show their enormous experience in the area and provide an excellent roadmap for others who are interested in M&A's that do not wind up on the trash heap of ill-founded dreams that do not come true."
-Dr. Stephen H. Rhinesmith, author, The Manager's Guide to Globalization: Six Keys to Success In a Changing World
"Lineberry and Carleton have laid out a rational approach to a critical aspect of business which more times than not, falls prey to irrational and impetuous behavior. Stockholders, employees and customers alike will benefit tremendously from the wise implementation of these ideas in future mergers and acquisitions."
-Dr. Geary A. Rummler, author, Improving Performance: How to Manage the White Space on the Organization Chart
"The purpose of this book is to provide managers with tools for targeting cultural problems as the primary culprit in M&A failure and to provide a general guide to cultural due diligence and integration. It certainly fulfills this purpose, one that is unique in the marketplace."
-Dr. Christopher C. Geczy, assistant professor of finance, The Wharton School
"This book could and should become a major influence in the field of mergers and acquisitions and in the field of performance improvement. The authors have a unique ability to relate business issues to cultural issues and cultural issues to business issues."
-Dr. Dale Brethower, professor emeritus, Western Michigan University
Inhaltsverzeichnis
List of Figures, Exhibits, and Worksheets xi
Contents of the CD-ROM xiii
Acknowledgments xv
Preface xvii
Introduction 1
PART ONE Mergers, Acquisitions, and Organizational Effectiveness 5
1 Mergers, Acquisitions, and Organizational Culture 7
The M&A Report Card 8
M&A Failure Costs 9
Why Mergers and Acquisitions Really Fail 13
Organizational Culture and Culture Clash 15
A Case Study in Managing Culture-British Airways 16
The Prevailing Wisdom Is Wrong 16
Culture as the Culprit 17
Defining Organizational Culture 18
Culture and Performance-The Hard Data 19
National Versus Organizational Culture 20
2 The Organization as a System 23
System Awareness 24
The Individual as a Performance System 25
Winning the Battle While Losing the War 26
Cross-Functional Teamwork 29
Management and the System 29
Synthesis Before Analysis 30
Culture Is Not a System Component 31
3 Organizational System Alignment 35
A Systemic Approach 36
Getting the Balance Right 37
An Organizational System Model 37
Checking the Vital Signs 46
PART TWO Cultural Due Diligence and Assessment 49
4 Overview of Cultural Due Diligence 51
Cultural Due Diligence 53
The Case for Cultural Due Diligence 54
Off-the-Shelf vs. Customized Cultural Assessment 56
Characteristics of a Customized CDD Model 59
CDD Deliverables 60
Due Diligence and Legal Restrictions 60
Pre Letter of Intent/Acceptance Activities 61
Assessing Degree of Difficulty of Cultural Integration 65
Getting It Right-The Hewlett-Packard/Compaq Merger 65
5 Performing Cultural Due Diligence 69
The CDD Process 69
Cultural Assessment 76
Drafting the Cultural Alignment and Integration Plan 81
PART THREE Cultural Alignment and Integration 83
6 Aligning and Integrating the Executive Group 89
Planning Cultural Alignment and Integration 89
Aligning the Organization 91
Discussing Results and Recommendations with CEO 91
Aligning and Integrating the Executive Group 94
Issues-Based Team Building for the New Executive Team 96
7 Aligning the Management Group 99
Gaining Clarity on Organizational Direction 100
Values and Practices 101
Gaining Agreement on Values and Practices 102
Communicating the Session Results 103
Tiger Teams 104
Feedback-Based Management Planning Sessions 105
Developmental Streams 107
Individual Action Plans 109
Follow-Up Sessions 109
8 Aligning the Total Organization 111
Design and Activities for All-Staff Sessions 111
The Case for Change 113
Work-Process Re-Engineering Sessions 115
9 Cultural Integration Success Measures 117
Financial Success Measures 117
Cultural Integration Success Measures 118
10 Summary and Conclusion 121
APPENDICES 123
Appendix A: The British Airways Transformation: A Systemic Approach 125
Appendix B: Organizational Alignment Model: A Reading 133
Appendix C: Organizational System Scan Model: An Overview 143
Appendix D: Organizational Scan: Sample Probes 149
Appendix E: Sample Values and Practices 151
Appendix F: Sample Manager 360-Degree Feedback Report: For A. Manager in XYZ Corporation 155
Appendix G: Sample Manager's Action Planning Guide 159
Appendix H: Staff Involvement Day: Sample Agenda and Materials 185
Glossary 193
References 199
Index 203
About the Authors 209
How to Use the CD-ROM 211
