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cameron and green making-sense-of-change-management

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Mergers <strong>and</strong> acquisitionsside <strong>of</strong> the road or the right-h<strong>and</strong> side <strong>of</strong> the road. You need to adapt to localways <strong>of</strong> doing things.The amount <strong>of</strong> cultural integration required depends on the reason forthe merger or acquisition. If core processes are to be combined foreconomies <strong>of</strong> scale, then integration is important <strong>and</strong> needs to be given<strong>management</strong> time <strong>and</strong> attention. However, if the company acquires aportfolio <strong>of</strong> diverse businesses it is possible that culture integration willonly be necessary at the senior <strong>management</strong> level.The best way to integrate cultures is to get people working togetheron solving business problems <strong>and</strong> achieving results that could not havebeen achieved before the merger or acquisition. In ‘Making the dealreal’ (Ashkenas, Demonaco <strong>and</strong> Francis, 1998), the authors have distilledtheir acquisition experiences at GE into four steps intended to bridgecultural gaps:• Welcome <strong>and</strong> meet early with the new acquisition <strong>management</strong> team.Create a 100-day plan with their help.• Communicate <strong>and</strong> keep the process going. Pay attention to audience,timing, mode <strong>and</strong> message. This does not just mean bulletins, butvideos, memos, town meetings <strong>and</strong> visits from <strong>management</strong>.• Address cultural issues head-on by running a focused, facilitated‘cultural workout’ workshop with the new acquisition <strong>management</strong>team. This is grounded on analysis <strong>of</strong> cultural issues <strong>and</strong> focused oncosts, br<strong>and</strong>s, customers <strong>and</strong> technology.• Cascade the integration process through, giving others access to acultural workout.R<strong>of</strong>fey Park research (Devine, 1999) confirms the need to tackle culturalissues. This research shows that culture clashes are the main source <strong>of</strong>merger failure <strong>and</strong> can cost as much as 25–30 per cent in lost performance.They identify some <strong>of</strong> the signs <strong>of</strong> a culture clash:• people talk in terms <strong>of</strong> ‘them <strong>and</strong> us’;• people glorify the past, talking <strong>of</strong> the ‘good old days’;• newcomers are vilified;235

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