The Hindu Business Line : How to manage the clash of cultures after an M&A?

Story so far: Participating in what are seen as routine meetings in the company is an educative experience, I find, especially if they are short spells and focussed. Distracted participants, and failure to follow-up on topics discussed in meetings can rob the exercise of productivity, I realise. If only we could follow-up at least half of what we talk about in meetings, I wonder.

Episode 145

Musing at meetings was the theme last week. I'd wrapped up then with the hope that there should be an effective method of tracking the talked-about issues. "Dear Swati, meetings in today's work environment have become a regular activity, irrespective of the type of responsibility or level of reporting," writes Sriram Kannan.

"Gone are the days when meetings were restricted only to the top echelons. Today's competitive environment has forced most managements to delegate decision-making to the middle management and, in some cases, even to the junior management. The important point is how the outcomes of these meetings are recorded or tracked so that crucial time is not wasted in re-evaluating the business proposals." That's right, Sriram.

"Modern gadgetry and software have made decision making at the top management level simpler but it is the inputs and outcome of meetings at the middle and junior management levels that add `punch' to those decisions." Good insight! "To enable and empower meetings at all levels, needed are a coordinator, effective recording of crucial decisions and compiled summary of the meeting proceedings. A coordinator will ensure that people stay focused on the discussion topic."

Sriram suggests the modus operandi: "A pre-formatted summary sheet displayed in the meeting venue or carried along with the coordinator would go a long way in capturing the essence of meetings and the subsequent reviews. Also, a system of having a coordinator on rotation basis would boost the morale of the participants and empower them in decision-making." Thanks Sriram for useful meeting know-how!

"It's a fact that meetings aren't conducted in a meaningful manner. There are too many digressions and unnecessary interruptions," rues Krithivasan.

"Meetings need to be conducted in professionally. Everyone needs to be given a chance to speak and come out with their opinions/ideas. Open debates should be encouraged. Dissensions should not be frowned upon." Ideal setting. Wish we moved towards that.

"Hi Swati, I was going through your report on the Budget," writes S. Anand. "I need a small clarification on service tax. I am providing software technical services to big companies by sending technical staff to client companies on sub-contract basis. Till last year I did not pay service tax and it was exempted. I don't know whether it is applicable this year or not. If applicable, from when do I need to pay the tax?" Let me forward this poser to an expert in the field, and find out. Hopefully, soon, Anand.

A look at the follow-up of the previous meeting can help, suggests Sivakumar C. of Thiruvanathapuram. "Issues discussed (other than the confidential ones) should reach the lower levels too so that the work can be followed up. Total responsibility is better. Irritants, such as SMS-ing, should be strictly avoided at meetings. Such personal chores should be finished before meetings. The same SMSs can be better used to communicate the topics to be discussed in the meeting. This will help individual members attending the meeting to pre-plan what is to be discussed."

V. Shri Kumar, AGM, SBI, mails in from Mumbai: "Dear Swati, there is a way. In all meetings of board of directors, the first or second item on the agenda would be adoption of minutes of the previous meeting. It contains item-wise details of the earlier meeting and the action taken on each item. With due discussion, minutes of the earlier meeting would be adopted.

"Similarly, if action points emerge in a meeting, they should be recorded for onward circulation to the heads of departments concerned for suitable action. Action taken/yet to be taken should be summarised for presentation in the next meeting. This would be a simple, yet effective, way of monitoring progress. Discussions should be short and focussed. As you observed, cell phones should be switched off, including by you know who." Thanks Shri for the practical suggestions.

"Hi, this is Venkatakrishna Rao from Mangalore. I am a lecturer in biotechnology in St. Agnes College. I read your article with interest I am interested in `entrepreneurship development and on-the-job training.' I would grateful if you could guide me in this regard, and also please tell me about the new courses available for women after their degree. Thanking you." If only I knew Venkata. I hope that I stumble across some info, which could be helpful to you!

"Dear Swati, I will continue with the last sentence of your article... There should be an effective method of tracking the talked about issues," writes K. Guru Prasad, Regional Sales Manager, Asiana Airlines, Bangalore.

"At British Airways' strategy meetings, every point that needed action had to be assigned a date by which it had to be performed and by the person responsible for solving the issue. Easier said than done, but the secretary at the meeting would remind us by mail or phone of its implementation and the next meeting would happen only if all concerned closed the issues at hand or needed further assistance of the senior management. The carry forward was usually two in 10. Of course, there were rewards for implementing or resolving an issue before the deadline and without being reminded. This worked very well and corporate time and money was always well used."

Success story that should inspire, I'm sure. Thanks Guru. Was checking http://us.flyasiana.com. Fleet 59, it says. Well-designed site; also, www.asianacargo.com.

"Dear Swati garu, which is the most developed country in the world?" asks P. V. Sudhakar Rao from Ongole. "India would have been the answer, had Indians been disciplined enough to follow-up topics discussed in official meetings. One amazing example of follow-up is a letter recently mailed to India by the UK Government to the effect that a bridge built by the British in India should be pulled down as it had lasted its expected life." Good!

********

Clash of cultures

Caught suddenly by the reading bug, a few days ago, I decided to visit a big bookshop in the city. I had gone there more than a year ago. So, it came as a surprise to see many changes in the interiors. Whole sections had been shuffled. In the place of `business' books there was the `travel' shelf, and my favourite `cassettes' space had been gobbled up by `CDs.' But more than the difference in the wall hangings, and the colour of the walls, the spruced up ceiling and the RFID gadgetry, there seemed to be a total shift in the ambience.

Was that a new perfume filling the air, I asked myself? And devotional music in the place of western classical? Even as I was trying to readjust myself in the strange environs, a couple passed by. I could hear the wife ask the husband, "Do you remember how helpful the shop assistants used to be?" Well, I too thought so! And he seemed to have the answer. For, he said, "Yes, dear. I think they used to be more `human' before the takeover!"

For the next about half an hour, I was scouring the shelves for books on mergers and acquisitions to find out how there can be something more important than the price paid and gains made: The culture element in acquisitions. Perhaps, the culture clash between the acquirer and the target company can account for many failures, I thought.

How to manage the clash of cultures after an M&A deal? Can it ever happen that the `better' culture wins though it be of the company taken over? Or is it always that the acquirer's culture prevails, I wondered? Send in your thoughts by Friday.

Swati_CA@hotmail.com

http://Swati-CA.blogspot.com

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