Sunday, August 24, 2008

Cultural Myopia

It was disappointed to read the response to a question posed to a management guru and his partner who writes a popular syndicated column that I am sure is widely read. The questioner is direct and seeks a response as to why companies do not address cross-cultural issues in merger until it is too late. The answer begins with a bang and the authors say, “Because you cannot number crunch culture”. This opening sentence urged me to read on but I was disappointed as the rest of article went on to describe the “reverse hostage syndrome” or what is described as the acquirers compulsive need to acquire and the complications that arise due to making concessions in the process of being obsessed to close the deal.

The rest of the answer filling almost half the page of a broadsheet has just one more mention of the word culture! I have begun to use the term “Cultural Myopia”, which I am sure, has been used by many in the past and the title derives inspiration from Theodore Levitt’s classic paper “Marketing myopia”. Let me get back to culture before I go off on a tangent like the management guru’s I am referring to! I will start with a work definition of culture from “A Dictionary of Human Resource Management” by Edmund Heery and Mike Noon, Oxford University Press, 2001. “Organizational culture is the set of shared understandings and assumptions the members of an organization have about what the organization is (beliefs), how it ought to be (values), and how organizational members should behave (norms)”. One of the dangerous assumptions most people (IMHO) seem to make is taking a “Unitarian” view of culture assuming that members of an organization or indeed a community must accept the culture without questioning it. This is where I feel lies one of the points of failure and how cultural myopia becomes a barrier in ensuring the harmonious integration of two organizations created by a merger or acquisition.

A majority of managers do not seem to be comfortable dealing with the so-called softer issues like culture and prefer to seek comfort in the operational aspects of business like managing the growth of revenue and profit. There is no doubt that these are of paramount importance but there is a slender chance of two business which for reasons of exploiting “synergy” come together through an acquisition if there is an enormous amount of “allergy” between their people! The allergy syndrome is in part attributable to a lack of understanding of each other’s culture and hence an inability to embrace the differences that will naturally exist in the way people relate to each other in the course of day-to-day business.

It is not possible to conceive of a potpourri approach where multiple cultures melt and the resultant culture is acceptable nor can both cultures exist as is. Therefore, what are the alternatives available? It is not my intent to be prescriptive and suggest some silver bullets as that will be futile. I propose instead some simple measures that companies can put in place to embrace multiple cultures and thrive without the need for a “Unitarian” approach to culture which include:

1) Senior management spending adequate time to understand both the national culture and organizational culture of each other’s organizations
2) Refraining from making any organizational changes other that what is an absolute must till people have made efforts to soak in each others cultures
3) Constitute an integration team that has “culture” as one of the agenda items and not limit the same to functions like IT, Finance, Procurement etc.
4) Mandate right from the word go that a couple of senior management folk will physically move over to the location of the acquired/acquirer
5) Supplement the above at operational levels as well by identifying cross functional/cultural teams that will demonstrate the ability to work shoulder to shoulder
6) Stepping up on communications between the companies and encouraging an open sharing of information between them therefore curbing the development of any SILO mindset
7) The CEO stepping up as the cultural ambassador and reviewing the effectiveness of both sides being able to embrace each others cultures and accept what can be merged and what cannot on a monthly basis

There are no guarantees that steps such as what I describe above will work, all I can say it will increase the probability of ensuring the creation of a “culture of success” that is based on inclusion.

Thursday, August 21, 2008

Where have the “Three R’s” gone

Back at school in the analog days, teachers emphasized Reading, wRiting and aRithmetic collectively known as the “Three R’s”. I must confess that I could never take to cursive writing. My handwriting was awful and perhaps some historian could mistake it for a new version of some form of hieroglyphics! I was poor at spelling (being dyslexic) and not known for my dexterity with numbers for the same reason. However, thanks to my grandparents, I took to reading very early and continue this habit even to this day.

In this digital age, we seem to totally lost the “Three R’s” and they have been replace by Surfing, Typing and Spread sheeting (or spread cheating)! There is no doubt that technology and the internet have made a positive impact but sadly as with many technologies that have ostensibly benefitted humankind there is a negative side too. Reading seems to be the indulgence of a minority. I wonder how people seem to be unable to fathom the immense joy derived from reading as fascinating biography, a historiographer’s account of our past, a thriller or a work that dwells into inquiring about the very purpose of our existence. A good book can fire our imagination and transport us into the soul of the characters it features and we can learn from the triumphs and tragedies and benefit from the nuggets of wisdom packed in by the author. Reading also aids in sharpening our creativity, which seems to be stifled today because of the abuse of “surf and search” followed by “cut and paste”.

Folks come on ! Books are very affordable today or there are libraries both analog and digital, go on pick up a book today and discover a friend for life … Happy reading! As Groucho Marx once said, "Outside of a dog, a book is a man's best friend. Inside of a dog, it is too dark to read! I must thank Abhinav for suggesting this appropriate quote.

Monday, August 18, 2008

Priorities

All of us know that our priorities change as we progress through life from graduation to embarking upon a career and then through to whatever end goal we wish to make our destiny. As I reflect, one of the most important struggles has been to ensure there is overlap between personal and work objectives. They seem to blur when one is young and eager to grow at work seizing every possible opportunity. I have often complained that I have had no time to accomplish even the most mundane personal needs as work requirements dominated all the space and time at hand. There has been a price to pay and I find myself reluctant to pay that anymore.

I have been lucky to come to terms with myself and have stared to learn how to set priories. A true convergence between personal and work objectives is not my quest anymore. All I try to do is be fair to both needs. It is a journey and there is no silver bullet. It calls for frequent redirection based on reflecting upon what we engage with, questioning that with as much a detached mind as possible. Out of such reflective observation some priorities will stand out, pursue them with single-minded devotion. This is how I believe I can achieve work life balance.

Monday, August 11, 2008

Action expresses priority

It is obvious that Mahatma Gandhi knew how to manage time. The art that makes it possible for one to do what is close to ones heart. Many of us have a long list of things “to do”. These are usually things, which are very close to our heart. The pity is they remain things “to do” forever. I recall a conversation with a colleague of mine with whom I had to work long hours together during an assignment.

During a late afternoon lunch, the conversation veered around the things “to do” list. I had a long list, which grew over the years, and after I completed narrating the same, I felt I must have made a good impression. I was then asked if I had a time plan to complete at least the top three items in my “to do” list. As I had anticipated this question, with a smile I said, I will take them on after I hang my boots five years from now when I hit the big 50! My friend was not impressed and said, it is very much likely that you will never complete your “to do” list. I tried to murmur a protest, which she seemed to know, was coming. If you cannot find time for what you want to do now, it does not seem important enough to you she said. She then added, what do you think will change five years from now that will encourage you to do things you have conveniently parked for several years? I had no answer then.

After some reflection, I think the answer is simple if any of the items in your “to do” list of important to you do not put it away, do it now! Work on that “to do” list and as Mahatma said your action will indicate that it is your priority to do something close to your heart. To conclude here is another nugget of wisdom from Victor Hugo who said, "There is nothing as powerful as an idea whose time has come".

Agile Investors – Need some in India

Of late I have been wondering why India has not produced agile investors. A name that comes to mind is Carl Icahn. His recent efforts to engineer what I think is a logical separation of two business of a large North American company that will undoubtedly create two winners instead on one combined loser is commendable. Someone like me, who is an observer far, removed from the action, can only attribute it to Icahn. It may be that the management was progressing down this path at Icahn accelerated the process.

I see the need for several Icahn’s in India. I am sure such investors will protect the small investors more effectively than any regulator by ensuring that the management of the companies they have stake in are accountable to their shareholders and focus on creating wealth for them. Are views of mine stemming out of greed, I would say no as I personally do not invest in shares.