Tag Archives: Gaps

How Do You Align Company Culture? Three Approaches

Situation: A company purchased another company one year ago. While the two organizations complement each other in terms of market coverage, their cultures differ. What are the key cultural issues that the CEO should consider as they work to bring the two companies into deeper alignment? How do you align company culture?

Advice from the CEOs:

  • What are the differences between the cultures of the two companies?
    • The purchasing company’s culture is characterized as tech-savvy. They work easily across time zones; have high team autonomy; and pool back-office responsibilities and the associated expenses for more consistent management across projects. While their overall revenue is lower, they have higher revenue per revenue-producing employee.
    • The acquired company’s culture is not tech-savvy. They make little use of email or technology; have little long-distance communication or experience working across time zones; a top-down decision and management structure; and expenses are managed at the project level with little consistency in expense handling between projects. They have no HR function.
  • Look at the core values that drive each company. Compare and contrast these.
    • Are there complementary strengths on which to build synergy?
    • Are gaps in one company complemented by strengths in the other?
    • Usually, the acquiring company has to opportunity to dictate the culture of the combination. With shrewd positioning, strengths of the acquired company can provide benefits to the combination.
    • Perform a values analysis of the two companies and look for opportunities to leverage value strengths across the two companies.
  • Look for an informal opportunity to have a conversation with the principles of both companies about their motivations for agreeing to the acquisition. There are two basic options:
    • Integration and growth or diversification and investment.
    • If the purchase was for integration and growth, then the acquirer will likely want to instill their values into the acquired company.
    • If the purchase was for diversification and investment, then the acquirer may be willing to allow the acquired company considerable autonomy. However, strategies and plans should be probed to provide clarification.
    • Understanding these factors will help to determine which values and strengths of each company to combine into a unified culture.

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How Do You Manage the Company’s Growth? Seven Solutions

Situation: A CEO is contemplating the company’s growth over the next year. One key manager is leaving, an aggressive target has been set for the year, and the company needs to fund this growth from planned cash flow. The biggest question is whether the existing team can handle this growth. How do you manage the company’s growth?

Advice from the CEOs:

  • All managers reach the limit of their abilities sooner or later. It happens on different timetables to different people. The critical question is how well does the team learn along the way?
  • It’s important to recognize first, what you don’t know, and second, to decide how to cover this deficiency.
    • The deficit can be filled through team learning, hiring someone with the need expertise, or bringing in a consultant with the needed skills.
  • If there are too many meetings, are they all necessary? Do they accomplish what needs to be done? Or might they be part of a routine or habit that needs review.
    • Beware the standing meeting.
  • Analyze the company’s infrastructure. Look at strengths and weaknesses of all departments. Determine the resources necessary to fill in the gaps.
  • Look at things that are being done now that perhaps shouldn’t be done.
    • Alternatively, are there things you are not being done that should be done?
    • What risks is the company assuming through current management behavior?
  • Don’t accept problems brought to the CEO for remedy without an alternative of some kind from the individual raising the problem.
    • The CEO can’t do it all; that’s why there’s a management team.
  • Choose with care those issues delegated to a peer or subordinate for solution.
    • Another CEO told of an issue where he delegated a critical project to the wrong person and the job wasn’t done.
    • Confidence must be established for effective delegation.

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How Do You Maintain Focus on Quarterly Objectives? Three Ideas

Situation: The CEO of a service company is focused on growth, which is driven by new contracts. This, in turn is driven by new sales contacts per week. Sales staff are paid on commission. The CEO wants to assure that quarterly objectives are met to grow the company. How do you maintain focus on quarterly objectives?

Advice from the CEOs:

  • Track and publish progress against weekly, monthly, quarterly metric objectives and key drivers.
    • Post charts around the office to maintain staff focus on objectives.
    • Put up whiteboards that show individual metrics as well as daily “top 3” focus items.
  • Identify key market sectors where focus will pay off for the company.
    • It’s OK to take a generalist approach as the company develops a new market sector. This helps to learn the dynamics of that sector.
    • As sector market penetration grows, develop functional or sector specialties.
  • Identify and focus on the gaps to company success.
    • Monitor and generate incentives to increase sales activity. The more fun that is involved in this, the faster the company will close the gaps.
    • Focus marketing on developing more prospects. Brainstorm creative marketing approaches that will generate prospects. Create a competition to develop the best new ideas with incentives or prizes to celebrate the most successful ideas.
    • If additional resources are required, currently beyond the company’s budget, investigate adding commission-driven contract resources with strong incentives for identifying new prospects and landing new clients.

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