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SIKORA ASSOCIATES, LLC
Cultural Due Diligence
Culture is deep.
If you treat it as a superficial phenomenon,
if you assume that you can manipulate it and change it at will,
you are sure to fail. Ed Schein
Studies indicate that 60-80% of mergers and acquisitions are viewed as financial failures and that about half simply fail.
In a survey of senior managers by Society for Human Resource Management (2005):
- Two-thirds had been involved in three or more mergers and acquisions in previous 5 years
- ¨Only 43% of those reported success in expected pre-deal synergies
- ¨Incompatible cultures named as "major obstacle" to success by over half (56%).
In a Tower & Perrins survey of 132 executives (2003):
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- ¨The top cause of M&A failure was “cultural incompatibility” (57% of execs)
- ¨Cultural alignment was named by nearly half (47%) as the most critical “people issue” to address.
THE CULTURE ICEBERG - MOST OF IT'S UNDER WATER
Culture exists at several levels:
Artifacts – superficial behaviors, visible objects & “climate” factors that are easy to measure
Espoused Values – what we say we stand for, written mission and vision statements
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Enacted Values – what actual behavior says we stand for, “taken for granted” patterns that demonstrate what really matters
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Underlying Values, Assumptions, Beliefs – shared, usually unspoken (tacit) views of the world, what success means, what matters, who matters, and why
It wasn't the tip of the iceberg that sank the Titanic.
Contact us to help you avoid underwater collisions.
SIKORA ASSOCIATES, LLC
Helping organizations understand...
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