Presented by Sandy Rogan and JoAnn Pavone

Acculturation describes the process of contract, conflict and adaptation as a result of combining cultures ACCULTURATION

WHAT CORE COMPETENCIES ARE NEEDED TO ACHIEVE ACCULTURATION ?  Respect  Listening/ Understanding  Compromise/Tolerance  Communication  Education

 Roundtable discussions  Group meetings  On-on-one meetings  Intranet updates  Written communication WHAT ARE THE BEST METHODS TO USE TO COMMUNICATE CHANGE?

 Ask questions  Solicit opinions  Form employee committees  Transparency from management  Develop an avenue for employee feedback HOW DO YOU BEST CREATE A CULTURE WITH OPEN COMMUNICATION?

 Fear  Anger  Resistance to change  Confusion/ Uncertainty  Uneducated WHAT ARE THE MOST CHALLENGING PEOPLE ISSUES IN M&A’S?

 Compromise  Negotiation  Listening/ Understanding  Flexibility/ Accommodations  Education/ Teaching HOW IS CONFLICT BEST MANAGED IN ACCULTURATION?

(Nahavandi & Malekzadeh, 1988)

Triggered when members of the acquired firm want to preserve their own culture and identity and remain autonomous and independent Does not involve loss of cultural identity to either company Acquired company’s employees try to maintain many of the beliefs, cultural elements and systems that make them unique, and are willing to be integrated into the acquirer’s structure INTEGRATION

One group willingly adopts the identity and culture of the other Acquired employees relinquish their culture and practices and adopt the culture of the acquirer Following the merger- structural, cultural and behavioral assimilation will occur ASSIMILATION

Attempting to preserve one’s culture and practices by remaining separate and independent from the dominant group Acquired employees refuse to become assimilated in any way or at any level with the acquirer and try to remain separate There is minimal cultural exchange between two groups and each function independently SEPARATION

DECULTURATION Involves losing cultural and psychological contact for the acquiring company and the acquired company Occurs when members of the acquired company do not value their own culture and organizational practices and systems They do not want to be assimilated into the acquiring company; there are feelings of alienation, confusion and loss of identity

INTEGRATION SEPARATION ASSIMILATION DECULTURATION Degree of Multiculturalism Degree of Relatedness of Firms

Perception of the attractiveness of the acquirer How much do members of the acquired firm value preservation of their own culture? INTEGRATION SEPARATION ASSIMILATION DECULTURATION

POINTS TO REMEMBER! Bupa Australia successfully acquired the Medical Benefits Fund Group in 2008 Create a vibrant, new organization- not simply merge existing companies Engage staff in the journey of creating the new organization Provide certainty quickly about positions and the direction and operation of the new organization

POINTS TO REMEMBER! 3 out of 4 M&A’s fail to achieve the anticipated strategic and financial objectives The failure of M&A’s can often be attributed to various HR- related factors: - Culture and management differences - Poor motivation - Loss of talent and uncertain long- term goals

POINTS TO REMEMBER! Layoffs often occur as a result of a merger. The manner in which separations are managed will be watched closely by remaining employees. Have a professional exit strategy in place and provide exiting employees with respect and dignity Offering outplacement services will be noticed and appreciated

POINTS TO REMEMBER!

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