Achieving Post–Merger Success – A Stakeholder′s Guide to Cultural Due Diligence, Assessment, and Integration

<p>List of Figures, Exhibits, and Worksheets xi</p>
<p>Contents of the CD–ROM xiii</p>
<p>Acknowledgments xv</p>
<p>Preface xvii</p>
<p>Introduction 1</p>
<p>PART ONE Mergers, Acquisitions, and Organizational Effectiveness 5</p>
<p>1 Mergers, Acquisitions, and Organizational Culture 7</p>
<p>The M&amp;A Report Card 8</p>
<p>M&amp;A Failure Costs 9</p>
<p>Why Mergers and Acquisitions Really Fail 13</p>
<p>Organizational Culture and Culture Clash 15</p>
<p>A Case Study in Managing Culture British Airways 16</p>
<p>The Prevailing Wisdom Is Wrong 16</p>
<p>Culture as the Culprit 17</p>
<p>Defining Organizational Culture 18</p>
<p>Culture and Performance The Hard Data 19</p>
<p>National Versus Organizational Culture 20</p>
<p>2 The Organization as a System 23</p>
<p>System Awareness 24</p>
<p>The Individual as a Performance System 25</p>
<p>Winning the Battle While Losing the War 26</p>
<p>Cross–Functional Teamwork 29</p>
<p>Management and the System 29</p>
<p>Synthesis Before Analysis 30</p>
<p>Culture Is Not a System Component 31</p>
<p>3 Organizational System Alignment 35</p>
<p>A Systemic Approach 36</p>
<p>Getting the Balance Right 37</p>
<p>An Organizational System Model 37</p>
<p>Checking the Vital Signs 46</p>
<p>PART TWO Cultural Due Diligence and Assessment 49</p>
<p>4 Overview of Cultural Due Diligence 51</p>
<p>Cultural Due Diligence 53</p>
<p>The Case for Cultural Due Diligence 54</p>
<p>Off–the–Shelf vs. Customized Cultural Assessment 56</p>
<p>Characteristics of a Customized CDD Model 59</p>
<p>CDD Deliverables 60</p>
<p>Due Diligence and Legal Restrictions 60</p>
<p>Pre Letter of Intent/Acceptance Activities 61</p>
<p>Assessing Degree of Difficulty of Cultural Integration 65</p>
<p>Getting It Right The Hewlett–Packard/Compaq Merger 65</p>
<p>5 Performing Cultural Due Diligence 69</p>
<p>The CDD Process 69</p>
<p>Cultural Assessment 76</p>
<p>Drafting the Cultural Alignment and Integration Plan 81</p>
<p>PART THREE Cultural Alignment and Integration 83</p>
<p>6 Aligning and Integrating the Executive Group 89</p>
<p>Planning Cultural Alignment and Integration 89</p>
<p>Aligning the Organization 91</p>
<p>Discussing Results and Recommendations with CEO 91</p>
<p>Aligning and Integrating the Executive Group 94</p>
<p>Issues–Based Team Building for the New Executive Team 96</p>
<p>7 Aligning the Management Group 99</p>
<p>Gaining Clarity on Organizational Direction 100</p>
<p>Values and Practices 101</p>
<p>Gaining Agreement on Values and Practices 102</p>
<p>Communicating the Session Results 103</p>
<p>Tiger Teams 104</p>
<p>Feedback–Based Management Planning Sessions 105</p>
<p>Developmental Streams 107</p>
<p>Individual Action Plans 109</p>
<p>Follow–Up Sessions 109</p>
<p>8 Aligning the Total Organization 111</p>
<p>Design and Activities for All–Staff Sessions 111</p>
<p>The Case for Change 113</p>
<p>Work–Process Re–Engineering Sessions 115</p>
<p>9 Cultural Integration Success Measures 117</p>
<p>Financial Success Measures 117</p>
<p>Cultural Integration Success Measures 118</p>
<p>10 Summary and Conclusion 121</p>
<p>APPENDICES 123</p>
<p>Appendix A: The British Airways Transformation: A Systemic Approach 125</p>
<p>Appendix B: Organizational Alignment Model: A Reading 133</p>
<p>Appendix C: Organizational System Scan Model: An Overview 143</p>
<p>Appendix D: Organizational Scan: Sample Probes 149</p>
<p>Appendix E: Sample Values and Practices 151</p>
<p>Appendix F: Sample Manager 360–Degree Feedback Report: For A. Manager in XYZ Corporation 155</p>
<p>Appendix G: Sample Manager s Action Planning Guide 159</p>
<p>Appendix H: Staff Involvement Day: Sample Agenda and Materials 185</p>
<p>Glossary 193</p>
<p>References 199</p>
<p>Index 203</p>
<p>About the Authors 209</p>
<p>How to Use the CD–ROM 211</p>