Friday, March 10, 2006

THE HR NETWORK: How do I integrate two culturally different organizations?

THE HR NETWORK: How do I integrate two culturally different organizations?

Keep abreast of the latest HR strategies and best practices with the HRNetwork, a global listserv for strategic HR professionals. Here's an exampleof a recent posting with one of the responses it generated:

Q: We're currently facing change management issues related to theintegration of another firm into ours. Culture, processes and habits arequite different and this results in difficulties integrating the two teamsto make them work together properly. We're thinking of offering an award orfinancial incentive to the team that shows they focus on integrating witheach other, or to the team that's already the best integrated. I'd reallyappreciate any ideas on this topic. - HR MANAGER, A TOP GLOBAL LAW FIRM

A: I wouldn't offer a reward for integration and cooperation that's monetarybecause you're now establishing a new incentive plan for behavior that'spart of everyone's job: "working together to serve the customer." The bestintegrations seem to occur when the following factors are put in place andsupported by the top leadership team:

1. The clear and compelling reason the merger was formed to begin with. Whatare the market and competitive realities that make this important andcritical to survival? What major opportunities does this create for everyoneif successful?
2. Form a powerful guiding task team with membership from both companies tobe accountable for the integration. Incorporate this objective on theirappraisals and link these to existing performance reward systems.
3. Create and publish a vision of what the new company/entity will be ableto accomplish.
4. Communicate the new vision through every channel possible enlisting themost influential people.
5. Systematically evaluate what has to change in order to make the vision areality. Structures, processes, systems, people.
6. Plan for and publish short-term wins.
7. On a quarterly basis, have total company reviews of the progress to date.

- HR SENIOR VICE PRESIDENT, HUGHES SUPPLY

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