Cultural Due Diligence Brodie Woodland Better Boards 30 July 2016

What is ‘cultural due diligence’? Doing your homework Cultural due diligence assessing the cultural implications or risks of a transaction

Merger Collaboration Partnership Alliance Acquisition Shared services Public-private Joint venture Coalition

Cultural due diligence – key questions What’s needed? Where are you now? Is it viable?

Dimensions of culture

Stakeholder Interviews EXPLORATION NEGOTIATION IMPLEMENTATION # P a r t n e r s Understand Own Culture Site Visits Staff Survey R e s o u r c e s Joint Working Stakeholder Survey Public Data Staff Interviews Joint Planning HR Data Informal Discussions Assessment Tools Stakeholder Interviews Individual Activity Joint Activity

Some examples…

EXPLORATION NEGOTIATION IMPLEMENTATION Informal Discussions 1 P a r t n e r R e s o u r c e s Informal Discussions Joint Working Individual Activity Joint Activity

EXPLORATION NEGOTIATION IMPLEMENTATION Understand Own Culture 2 P a r t n e r s Understand Own Culture R e s o u r c e s Public Data Joint Planning Informal Discussions Stakeholder Interviews Individual Activity Joint Activity

Several POTENTIAL PARTNERS EXPLORATION NEGOTIATION IMPLEMENTATION Several POTENTIAL PARTNERS Understand Own Culture 1 partner selected R e s o u r c e s Site Visits Public Data Stakeholder Interviews Informal Discussions HR Data Assessment Tools Joint Planning Individual Activity Joint Activity

Board involvement Oversight Direct engagement

What’s stopping you? Barriers Limitations Resources Timing Trust Desktop activity Executive filter Self awareness Data not decisions Subjectivity

Errors using inadequate data those using no data at all. are much less than those using no data at all. Charles Babbage, 1832

Questions?

What’s needed? Where are you now? Is it viable? Summary Define your vision Assess how attainable that will be Have a plan What’s needed? Where are you now? Is it viable?