08. CULTURE CHAMPION

There are many reasons that companies merge with or acquire other companies – most of them are financial and include increased market share, and diversifying a product portfolio. But what is often overlooked in the process, is the union of company cultures and the effect culture will have on business going forward.

Adumo group CFO Grant Minicom said that as part of the change management process, you need to focus on the culture much earlier in the process. “Culture is not something that a finance department takes into account during an M&A but I have learnt that it is such a critical component of the business. Company culture can make or break your business and it is something you need to focus on at the outset and not react to it,” he says.

“Be careful about labelling something as culture difference when in fact there was not enough specificity. I have experience in this and after digging, found that people have their own ways of doing things and I wasn’t specific about how they should do things. You need to give one-on-one time to get people over the line. And you may find that you or your managers spend a lot of time on this, but it is important,” Walter explained.

Imraan Osman, CFO at Siyanda Bakgatla Platinum, said he has learnt that creating a new culture is a journey and not a destination. “The fundamentals of any company culture lie in transparency, candidness and empowerment. People want to feel like they are being heard and that they matter – and ultimately, that is what culture must address.”