Transforming Cultures

CULTURAL DUE DILIGENCE – MERGER & ACQUISITION Situation

Solution We quickly established the key requirements for delivery and then working with both organizations we: • Implemented a values-based culture survey, in Spanish and English, to provide quality insight into the respective ‘ways of working’ of the acquired company and the relevant client functions. This was imperative in providing specific guidance on the key characteristics driving the current culture in each organization and to identify the values that would determine the success of the new organization. Surveying over 600 respondents. • Debriefed a group of representatives on the results, the implications, and the relevant actions and next steps. Working with senior leaders, we gathered and analyzed valuable qualitative information about the opportunities and potential pitfalls of integration. • Facilitated a small number of exploratory workshops with key representatives of the target population to unpack the results further and gain insights that shaped action plans in support of a smooth transition. Feedback from all relevant sites was obtained and synthesized into the final presentation which was made to representatives from the executive team of both organizations.

A significant global player providing highly-efficient integrated power and propulsion solutions for aerospace, marine, energy and off-highway applications. One of the world’s leading producers of engines powering applications as diverse as rail locomotives and luxury yachts. With a highly-developed supply-chain partnership and over 60,000 employees, Rolls-Royce operates at the highest level of advanced manufacturing and after-sales support services globally. Brief Rolls-Royce’s market position is built on innovation and strategic acquisition. In July 2016, the other shareholder in an aerospace joint venture business decided to exercise their option to sell. To oversee an orderly transition of assets and people to the parent company, Rolls- Royce formed an integration team. This team conducted work around the cultures of the two organizations; specifically to explore: • The ‘ways of working’ of the business being acquired (a Spanish organization with 4 manufacturing and servicing locations and a presence in 6 countries). • How this compares and contrasts with the key functions that will interface with the acquired business? • What cultural factors drive performance in each respective business? • Actions required to better align the two businesses from a ‘ways of working’ perspective, and to leverage any positive performance drivers to support the integration.