Culture & Change Management

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Viewing 8 posts - 1 through 8 (of 8 total)
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  • #153823
    SamirA
    Participant

    Culture, change and communication play a key role in PMI. Culture and communication can be linked together in many ways, what are the biggest cultural risks in cross-border mergers? How can communication be used to help mitigate cultural risks? Often, I believe it can be management styles which can cause frustration & power struggles and the mentality of “US versus Them” employees’ resistance of collaboration or sharing of knowledge. I believe communication can help mitigate this greatly and leadership to show the way of a new culture to strengthen the company.

    #154101
    Lorian Micu
    Participant

    Samir, you are right that “us versus them” is the core risk. In cross-border deals it goes deeper than management styles — it hits decision-making speed, risk tolerance, and what “good performance” even means. A German engineering firm that values consensus and thoroughness acquiring a US startup that values speed and autonomy will clash on every decision, not because either is wrong, but because their assumptions about how work should be done are invisible to both sides.

    Communication helps, but only if it is specific. “We respect your culture” is empty. “Your product development cycle is faster than ours — we intend to keep it that way, and here is how” is credible. The best practice from the IMAA material: identify the specific cultural dimensions that matter for synergy delivery, measure the distance, and intervene only where the gap threatens outcomes. Not everything needs to converge.

    Leadership modelling is the multiplier — people watch what leaders do, not what they say.

    #154458
    Shane Bullen
    Participant

    I’ve experienced the “us vs them” dynamic you describe. It’s typically strongest at acquisition and then tails off, however in my case, a four‑year integration prolonged the divide of different teams and ways of working, sometimes creating a competitive view and making relationship‑building harder. Notably, this was between two entities with broadly similar cultures; so with a larger cultural gap, the effort to align would be significantly greater.

    #154466
    Finn Staal
    Participant

    Communication can be a powerful tool if you provide sufficient and constant information on what-and-why and how to execute the merger. This also includes acknowledgement of the acquired organization and what contribution the new colleagues will make to combined setup. Bringing people together from the 2 organizations already in the Sign-to-Close phase (if possible – and virtually can work) will kickstart the integration and the learning process of each others culture and way of doing/thinking.

    #154879
    Ross Van Allen
    Participant

    I think one of the biggest things overlooked in the cultural aspect of integration is not only the recognition of the corproate culture and the “us vs them” mindset that typically is thought of during M&A, but also the national identity / local culture that may also serve as an undertone for any large acquisition, particularly one where the target is based in (or primarily comprised of individuals from) a different country than the acquiring firm. This was a hard-fought lesson for me in some of my earlier deals. The things that motivate one group of people from a cultural standpoint will absolutely not motivate others from a different culture. I had hoped that the HR functional integration module had hit on this more, because I’d love to know more scholarly components on how to plan/prepare for assessment of different country cultures vs corporate cultures. I’m US-based, as is my company. I’ve tried to help some of my direct reports in thinking this through, but a good reference point I always say is that the concept of “the American dream” is something that is uniquely American, and it does not necessarily correlate well to many individuals based in, for example, the Philippines. A sales strategy for a US-based target customer is different than the sales strategy for an Italian-based customer. A purchase negotiation for a supplier in India is different than the purchase negotiation for a supplier in Brazil. If we know these things to be true, then true culture & change management of acquired-entity firms should also consider the national culture of where the acquired firm is based, or the national culture of its member employees in the event they are based elsewhere.

    #154981
    Burcu İrim
    Participant

    I agree that culture and communication are closely linked, especially in cross-border deals. One of the biggest risks is the “us vs. them” mindset, which can quietly damage collaboration. Different management styles can make this worse if not addressed early. Clear and consistent communication helps, but I think leadership behavior matters even more. If leaders don’t model the new culture, communication alone won’t be enough. In practice, small actions (who gets involved in decisions, how information is shared) often shape culture more than formal messages.

    #155454
    Lindsey Edson
    Participant

    Building on your point, I’ve seen these dynamics very clearly in a cross-border acquisition I was part of, where we acquired a tech company with a large employee base in India—our first major expansion into that region.

    The main cultural risk wasn’t just “differences,” but how those differences showed up in communication and management expectations. The India-based team tended to use more formal, context-heavy communication styles, while our existing organization was much more direct, informal, and fast-paced. Without alignment, this easily could have led to misunderstandings around tone, urgency, or accountability.

    What helped significantly was that leadership acknowledged this early and treated culture and communication as a core integration stream, not a side topic. We addressed it both pre- and post-close through structured efforts: we ran training for the broader organization on Indian cultural and workplace norms and also provided onboarding for the acquired team on how our company communicates internally and externally—especially around directness, escalation, and written vs. verbal expectations.

    This two-way approach helped reduce the “us vs. them” mindset and prevented early friction from being misinterpreted as performance issues. In my experience, the biggest value came from treating communication as a bridge in both directions, rather than expecting one side to fully adapt to the other.

    #155977
    Milton Reyes
    Participant

    Hi Samir, in my experience, senior leaders dictate whether cultural assimilation thrives or fails. Unfortunately, values are too often weaponized for personal agendas, turning culture into politics rather than a bridge. Integration leads must onboard the right mindsets from the parent company and partner with both HR teams to champion the emerging culture. Ultimately, success comes down to continuous, transparent dialogue across every layer of the strategy and operations teams.

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