Cultural Change

A British Institute of Management survey of failed mergers and acquisitions concluded that the predominant factor was in underestimating the difficulties of merging two cultures. Similarly, Sherriton & Stern’s seminal study found that the main reason three quarters of re-engineering, total quality management, and down sizing efforts failed was due to neglect of the organisation’s culture (1996).

The culture of an organisation – its shared values and behaviours – is an integral part of a business’ identity and vital to its success. A cohesive cultural strategy, particularly during times of significant change (such as substantial staff changes, downsizing or mergers), is critical to meeting the business’ objectives.

Barrington Training works in collaboration with organisations to identify, change, and successfully manage their culture. Barrington’s cultural change program is designed to imbed the cultural change, and ensure ownership at all levels within the organisation. This strategy goes beyond simply identifying the existing aspects of their culture, but also formulating a comprehensive plan to create a more effective culture. Barrington focuses on developing the necessary leadership skills within the organisation, while further employing initiatives to ensure greater employee engagement.

In a landmark study by Kotter and Heskett, it was shown that those organisations that managed their cultures well saw revenue increases of 682% over a ten year period, while those that didn’t experienced an increase of only 166%. The study also found that the organisation’s stock prices increased 901% versus 74% respectively, and net income increased 756% versus a staggering 1%.