Due Diligence: Cultural Due Diligence

Mar 23

THIS IS THE FREE, REDACTED VERSION OF THE TASKS IN THE M&A REFERENCE MODEL  AND IT IS LICENSED UNDER Creative Commons Attribution-NonCommercial-ShareAlike 4.0 International THE FULL SET OF DATA HAS TO BE LICENSED COMMERCIALLY.   HERE is a full model example for one task.

The task has the following goal(s):

Target culture: analyzed

Draft culture integration plan: created

The task has the following objectives:

Integration success: maximized

Short description of task Cultural Due Diligence:

Cultural due diligence takes place at the resource level and looks at the corporate culture of the companies involved. Cultural due diligence is often included in the human resources due diligence.

The task uses the following business object types:

Influence of the values of the target company on its behaviour, Influence of the target employee's values on their behaviour, Influence of the standards of the target employee on their behaviour, Standards of the target company, Values of the target company, Values of the target employee, Standards of the target employee, Assumptions of target employees, Behavior of the target company's employees, Draft culture integration plan,

Questions to be used during the execution of the task

The task is executed with the following questions, among others:

What is the common goal of the target's employees?
What are the values of the target?
What are the rituals of the target?
What are the target's traditions?
What are the norms and assumptions of employees and managers?
What is employee satisfaction?
How do target employees behave?
What is important to the target's employees?
Which values are important to the target's employees?
Which formal and informal appreciation is given to employees?
What is the number of legal disputes between employees and company?
How do managers of the target behave?
What is important to the managers of the target?
Which values are important to the target's managers?
What is the target company's communication style?
Which forms of communication and collaboration exist?
Which communication and collaboration tools are used by the target company?
How are conflicts dealt with?
Is the tone of the target company friendly?
How does the culture of the target differ from the culture of the buying company?
Which cultural differences are critical (danger of culture clash)?
What is the tolerance for cultural differences between the buyer and the target?
Which compatible and incompatible values are there in both companies?
Which compatible values can be used to develop a new, common set of values?
How do the management cultures of both companies fit together?
How can understanding and respect for different values be fostered?
Which compatible and incompatible rituals exist in both companies?
Which compatible and incompatible traditions exist in both companies?

Which cultural complementarities and synergies would be possible?

THIS IS THE FREE; REDACTED VERSION OF THE TASK IN THE M&A REFERENCE MODEL: THE FULL SET OF DATA HAS TO BE LICENSED

Karl Popp www.drkarlpopp.com