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Case Study #1: Combining Cultures in a Merger Situation
 
Situation
 
We were brought in by the senior management of two high-tech companies who were beginning a merger process. Their goal was to ensure a smooth blending of the cultures, prevent productivity loss and minimize attrition. One company was based in the US, the other in Sweden, adding to the usual concerns of merging corporate cultures. They also knew that employees on both sides were extremely wary of the merger, with many saying they had no desire to work with their counterparts.
 
Action taken
 
Extensive interviews were conducted with employees from both companies to uncover specific concerns and feelings about the merger. We asked for their recommendations to the management team and whether they planned to stay and their reasons. Their comments were reviewed by the management team, but names were withheld. We provided regular, consistent communication on the merger process to all employees of both companies and created a weekly newsletter where all employees could submit material. The focus was on business development news, success stories on collaboration, and messages from senior management and from me. We guaranteed that any employee could speak directly to the senior team to share their views without recrimination. Finally, we convinced the senior management team to visibly implement as many of the best suggestions they received from the employees as they could.
 
Results
 
Employees on both sides appreciated the chance to be heard and taken seriously. As a result, barriers broke down, and communication and collaboration increased. Not just cross-culturally, but long-standing issues within each company improved as well. Understanding of each other’s companies and culture increased, as did buy-in of the value of the merger. Most importantly, not one employee left the new combined company, and there was no slowdown in productivity; in fact, productivity increased and the newly merged company was successfully poised for future success.
 
 
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