Digiwise Technologies acquired AI COBB in 2004. While the combined products were proving successful, cultural integration issues arose between the different organizations as they had varying work cultures from different countries. This presented a leadership challenge for Digiwise management to resolve the cultural differences and communication issues between the merged employees through virtual strategies.

1. Vikram Dahiya
S

2. DIGIWISE TECHNOLOGIES

3. AI COBB

4. Acquisition (2004)
Technologies

5. Case Description
S Within one year of acquisition of AI COBB the combined
product and services were proving to be a good fit for NGS
S There’s a potential for more growth and success provided the
various cross- cultural integration issues between the two
companies be resolved.
S Therefore the case presents a leadership challenge to the
management of Digiwise technologies in integrating different
organizational cultures utilizing mostly virtual communication
strategies.

6. 5 W’s and 1 H
S Who : Human resource management of Digiwise
Technologies and the employees of Al Cobb.
S What : Difference in the corporate culture of the two
organizations leading to various communication issues
between the employees.
S Where : At Digiwise’s network group solutions business
unit that is composed of members from 3 different
countries having different historical values and different
work culture.

7. Continued…
S When : The issues began cropping up after DIGIWISE
acquired AI COBB . Though some differences in the operating
style of the two companies was expected, little attention was
given to the major cultural differences.
S Why : The management at DIGIWISE failed to understand
the work culture of newly acquired company AI COBB. Neither
were they able to communicate their work culture well.
S How :Digiwise technologies didn’t spend enough time
considering the cultural differences between the two
companies. Their initial decisions portrayed their image as a
pushy domineering bully of a company to AI COBB employees.

8. PAIBOC MODEL
S From Jessica meson’s (HR manager , DIGIWISE
technologies) perspective
S Purpose : To initiate a two way communication with ex AI
COBB employees and settle down on a common set of
values in a way that sites could retain their
autonomy, style and uniqueness.
S Audience: Employees NGS.
S Ex AI COBB employees
S Core DIGIWISE employees

9. Continued…
S Information : send information about digiwise work culture &
action
S Benefits :common set of values would help them to
overcome the difficulties of not knowing each other personally

10. Continued…
S Objections : difficulty in Change in the core values and
acceptance of new values.
S perception of DIGIWISE as a dominating company.
S Context : In order to resolve the current cultural and
communication issues between the employees and give
them a feeling of organizational citizenship.

11. ISSUES
S The upper management at DIGIWISE has not taken the cultural integration issue
as a priority even after repetitive reminders from the HR.
S Digiwise has not been able to make AI COBB employees feel a part of DIGIWISE .
S Geographical isolation leading to long distance virtual interaction.
S Work procedure : Decision making practices
S Communication style.
S One way communication .

12. MIXING VALUES
S
Unique Site-based values :
Seattle, san
Francisco, Denver, Miami,
Chicago, Birmingham, Osl
o
National values:
United
States, England,
Norway
Historical values:
CompuOptions
NGS :A DIGIWISE Technology business Digiwise
unit. AI COBB

13. DILEMMA
S What decision making styles should be adopted by
DIGIWISE ?
S If some style contradicts a DIGIWISE core values , such
as participation ?
S To what extent ex-AI COBB employees can participate in
decision making ?

14. S Diversity training for managers
 Pros : understanding of each others culture
 Cons : adaptability issues
S Appreciating AI COBB employees for quality work
 Pros: motivation factor , increases involvement
 Cons: discontent among AI COBB employees
S Transfer of employees to different working sites.
 Pros: Cultural Integration
 Cons: Emotional mismatch , may be performing well in a specific team.

15. Continued …
S Organizing team outing and Rejuvenating trips : increase
interaction.
 Pros: increased team work efficiency
 Cons: expenses , objection to go with family
S Strict adherence to DIGIWISE values.
 Pros: strict working culture, short
 Cons: Discontent among AI COBB employees
S Video-conferencing instead of tele-conferencing
 Pros: exchange of expressions, observing response
 Cons: dissatisfaction regarding work environment

16. Continued …
S EMPATHY : Imagine yourself in the cultural shoes of others.
 Pros: give respect get respect
 Cons: wrong perception, stereotyping
S COLLECTIVISM: Harmony and loyalty , avoid confrontation.
 Pros: joyous work environment
 Cons: emotional involvement at professional workspace
S Effective two way communication
 Pros: better understanding
 Cons: clash of opinions

17. S Resist Stereotyping.
S Tolerance of ambiguity.
S Respect for differences.

18. THANK YOU .
S