Achieving Post-Merger Success: A Stakeholder's Guide to Cultural Due Diligence, Assessment, and Integration

Table of Contents:
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

About the Author :
J. Robert Carleton is co-founder and senior partner of Vector Group, Inc. and a director of Vector Data Services and Vector Europe, Ltd. He has worked in both the public and private sectors and has extensive experience as both a manager and consultant. Claude S. Lineberry is co-founder and senior partner of Vector Group, Inc. He has worked for more than thirty years on a wide range of organizational issues with a variety of clients around the world.