Culture Clash

In culture, there is no compromise

One common way that a team is forced into a change in culture is when they are merged with another team, either through a re-org or especially after an M&A. More so than intentional cultural changes, this type of forced cultural melding tends to be deeply problematic. In fact, 30% of M&A failures are attribute to issues arising from the cultural clashes between the merging companies. These culture clashes not only reduce the impact of a team, but can be hugely value destructive also.

Unfortunately, avoiding a culture clash is impossible once the merge has already started, so the relevant question for the manager is how to merge the cultures between two disparate teams in the least damaging way. While you ultimately want a culture that is the best of both worlds, success looks more like a takeover of one culture over another rather than a compromise.

As a top manager, there are three key points to consider when approaching this problem:

1. Pick a side

2. Bridge the top performers

3. Exit the agitators

Like any initiative that pushes for a change in culture, a culture clash is painful. However this one is more painful than most as many of the people affected are victims of circumstance rather than anything of their own doing. Regardless, the top manager will be focused on their end goal.

Pick a side

After a merger, the two teams will have their own distinct cultures, and there will be a moment where it is unclear what happens next. At this time, the manager will need to pick a side, and be clear about which side they are picking. In culture clashes, an equal compromise rarely ends in success. Ultimately, one culture will need to be dominant over the other in order for the merger to work successfully. That is, you will select a primary culture, and the non-selected one will be the secondary culture of the team.