Leveraging coaching across different cultures

Coaching across cultures means looking for opportunities to unleash more human potential by leveraging cultural differences. The outcome is increased performance and fulfillment. The following case studies illustrate how this can be done in a variety of situations.

Leveraging Unilever and Bestfoods Cultures
Research has shown that “over one merger out of two fails. Two out of three do not produce the value creation promised during the operation. The question of people and company culture is by far the number one failure factor.” In 2000, Unilever acquired Bestfoods for just over US$25 billion. The operation was among the twenty largest mergers and acquisitions worldwide that year.

Rather than de facto imposing its culture, Unilever understood that to make the merger work, cultural differences between the two companies had to be well understood. A task force, with the help of the Hay Group, identified the following differences, realizing that there were many exceptions to those generalizations:

The integration team recognized that all the orientations had potential merits. They considered amalgamating the best of both cultures but soon realized that a context was necessary to make that evaluation. The overall vision and strategy provided that context. What was called for was a new corporate culture that would draw characteristics from Unilever and Bestfoods. To that end, an enriched cultural repertoire has started to develop, leveraging Unilever and Bestfoods cultures. For example, Unilever executives are learning to make quicker decisions whenever extra analysis would only impede action. Bestfoods executives are developing a habit of constructively challenging decisions to avoid engaging in a hasty, inadequate course of action.

Several senior executives focused on the intellectual versus operational rather than to learn from the other culture to enrich their original company culture. Asked one Unilever executive to describe his vision in more specific terms and to spell out his operational priorities. Then, asked Bestfoods executive to articulate a general philosophy and a compelling business case, building on his intuitive ideas and concrete initiatives in order to bring his colleagues on board with his novel approach.

Time will tell how successful the Bestfoods acquisition will prove to be. But it is clear that this eagerness to learn from the other merging company has already strengthened Unilever–Bestfoods. Talent from the acquired Bestfoods has been retained and developed, rather than alienated, as is too often the case.