In case you missed my last post about defining corporate culture, feel free to click here.
Today, I’d like to shed some more light on the topic. This article, called “How to Merge Corporate Cultures”, appeared this morning in Inc. Magazine and provides some tips from yours truly, as well as other experts who know a lot about merging and defining corporate culture.
Some people diminish the role that a positive corporate culture plays in an overall business. I disagree with those who do. Why? Because speaking personally, I can say I do my best thinking, my best work, my best networking, and my best communication when I’m generally a part of a culture I enjoy and which stimulates me. I think most people would say the same thing. So when the corporate culture you’re in either never fits or suddenly goes south, morale drops and then pretty soon the dip in morale impacts, negatively, the actual business, relationships with clients, and customer service.
The statistic that I point to, which is also quoted in the Inc. article, is that 75% of mergers fail. I believe the reason is because of culture. When two companies or businesses combine, it is always with the best of intentions and because the parties believe that the business will be boosted to some higher ground with greater returns. The old saying “1 + 1 = 3” best describes how many people look at mergers. When mergers or acquisitions happen, there is always due diligence that is done by both parties; but most of the time that diligence happens through financial statements, legal documents and just about anything classified as quantitative.
Hardly ever is there diligence done on the corporate culture, because corporate culture is qualitative and is a little tougher for companies to define. Just because it is difficult, though, doesn’t mean it should be overlooked.
I’m very interested in this topic, not only because I have gone through several mergers or acquisitions in the course of my career, but because I believe so strongly that having the right corporate culture for your business does so much good TO your business. In fact, when businesses that I have been a part of have done well, it was because the culture was so strong – not the other way around. Corporate culture always drives the business; good business doesn’t necessarily create a good culture.
