SlideShare a Scribd company logo
[Drafted by David LaBar]
CAN CORPORATE AND CREATIVE COMPANIES EVER
TRULY MERGE?
No. And That’s OK, writes Olof Schybergson, CEO, Fjord and Baiju Shah, MD, Accenture Interactive &
Co-Lead at Fjord
It has been
said that the number one job of a CEO (and the entire C-Suite, really) is to cultivate culture. The
notion being: if a strong culture exists, everything else – employee morale, customer satisfaction and
other positive outcomes – will fall into place. But what happens when you bring together two vastly
different cultures in a merger? In real life, they say opposites attract, but does that apply to business?
The Reality of Now
This was the issue we faced in 2013 when Accenture Interactive—the digital agency of the global
professional services company Accenture -- acquired Fjord, a global design and innovation
consultancy. And while the business logic of infusing design into business transformation work was
obvious to us, we now faced the daunting task of integrating a global design boutique – filled with our
free-spirited creatives, open studios, collaborative workspaces, and iterative thinking and
experimentation – into a then 261,000-person firm best known for large-scale technology and business
consulting. We told our people it wouldn’t be smooth. For our clients, we had to merge design
sensibilities (think designer optimism vs. consultant pragmatism) and different disciplines (technology,
business strategy, design) into one cohesive team. Studies show that 50-80% of mergers fail, and
culture integration is often to blame. We knew the risk of messing this up was real. And we didn’t have
experience with something on this scale. In short, we had to bridge from strategic intent to the practical
reality of now.
Some press had already written the merger off as ill-fitted before it even happened. Three years
later, we not only successfully integrated, but Fjord has tripled the size of its team and expanded its
footprint from two to six continents. We’ve had some stumbles along the way, but the reason we
believe we have had success is because of something we learned early on, and still embrace today:
You can’t merge cultures. Culture is a living, breathing thing. It’s always changing as an organization
evolves. It shouldn’t be a one-size-fits-all approach. Today, embracing a culture of diversity and
differences is what makes a great organization great. Take it one step further: culture should be
approached strategically, like any core business function.
So how did we go about creating our culture of cultures?
Our North Star: A Unified Vision
When two disparate entities unite in a business merger or
acquisition, there’s often an immediate clash of cultures, an inherent
“us-versus-them” bias. But, what happens when the larger
corporation, instead of robbing the smaller brand of its identity,
chooses to foster cultural integration through a unified vision?
We knew we had a variety of skills (and cultures) at play, but
understood that there had to be a shared belief system, an end goal
that unites people, before any of these skills could be pooled
together successfully. In our case, our belief was that enduring
success for our clients will come from people-centricity, and our internal goal was ambitious: to create
the world’s leading design and innovation firm while serving as a benchmark for how you successfully
merge creative design, technology, and business strategy under one roof (long before it was all the
rage to do so).
Initially there was discomfort. For instance, consultants prefer recommendations that are information-
rich and based on analysis, data and best practices, while designers focus on narrative and make
recommendations based on insights and intuition. Through collaborating on work, this tension was
flipped into a positive as the teams realized that a diversity of problem-solving approaches can be a
strength, and they rallied around the vision to put the human first. The purpose became very tangible
when we won joint client projects or jointly addressed heady challenges, ranging from taking the
anxiety out of home buying or better managing diseases like ALS and diabetes.
Combining two diverse cultures straight away isn't really feasible... it takes time and patience. It
requires the leadership on both sides to have open minds that are ready to flex, to see beyond a
brand identity and give credence to an organization where culture is at the heart of business.
Companies should approach culture in a top-down and organic way – it’s deliberate and ever
changing. There is no singular culture. Only a shared purpose, collaboration and a respect for the
individual can hold it all together.
Protecting and Celebrating What’s Special
No matter their size, background or culture, all
companies will enter a merger armed with their
own strengths, so it’s all about recognizing what
to combine and what to keep distinct. We
recommend companies pick their battles
carefully – and learn when to let go. In our
case, Fjord’s open space studios were one area
to protect. We knew we had something special
in them as well as our unique design
methodologies, all of which fuel creativity and
inspire and bring clients into the design and
iteration process in ways they often haven’t
experienced before. Overall, we think the key
ingredient to any successful integration is a combination of your strongest assets, capacities and talents
– in service of client needs.
For us it was about retaining Fjord’s singular focus on design and innovation to solve business
challenges at the highest level. But at first, it was like two people speaking different languages. (It
“A lot of pressure is taken
off when you recognize that
you don’t have to force a
round peg into a square hole
and accept that a company
is a culture of cultures.”
helped that Fjord joined Accenture Interactive, which is culturally most similar to Fjord and provided a
bridge to the rest of Accenture.) Through ongoing education and mutual respect, Fjord came to
understand the language and approach to technology and business consulting. At the same time,
Accenture came to understand and embrace a design-forward approach – so much so that it is
reimagining its entire employee experience, including enterprise systems and internal processes. For
instance, we used Fjord's design thinking methodologies to overhaul the dreaded annual performance
review. Inside Fjord we’ve even created a dedicated business unit called Fjord Evolution, teaching
leading companies how to elevate the importance of design in their organizations.
We set out to debunk the whole premise that cultures must unite to become one. In fact, we think
successful integration is about collaboration – it takes place while solving joint client problems. In fact,
we proffer that companies shouldn’t get too hung up on culture unification. Business strategists can still
show up in business attire, technologists can show up in khakis, and designers can arrive in jeans, if that
is what keeps them authentic and comfortable. A lot of pressure is taken off when you accept that a
large company is a culture of cultures and recognize that you don’t have to force a round peg into a
square hole.
On the flip side, we found that Accenture gave
our design team a world-class commercial
foundation, a global reach, a solid backbone,
and a network of thousands of the brightest,
deepest experts in virtually any area you
might come across. It helped that Fjord joined
Accenture Interactive, Accenture’s digital
agency, which provided a cultural bridge to
the rest of Accenture and offered Fjord access
to more clients than it would have had standing
alone. People who originally came from
different units developed a mutual respect and
understanding of each other’s strengths. When
empty pride and hubris is laid to rest, you
accept and discover the humble precept that there’s something to learn from everyone, a
democratizing view that the sum is greater than its individual parts. Business strategists, technologists,
designers – each bring a unique asset to the table, and the most successful companies today (like
Google) make a multi-disciplinary approach fundamental to their business. Each party united by a
common belief that they’re better together – and ultimately, raising the end game.
You Can’t Indoctrinate Culture
With so many vast differences at the outset, transparent dialogue and collaboration among leadership
were also vital for building trust. With any collaboration, it shouldn't be about the “big boys moving in
on the little guy.” We learned to check our egos at the door and became open to learning from one
another.
It hasn't all been smooth sailing, and aligning two completely
different working styles can prove tricky. But instead of entering
into a battle of ‘who does what right,’ we understood there were
different perspectives at play and that our two different
operational and cultural methods could be successful together.
While Fjord had always approached problems with a more end-
user focus and Accenture more client-centric, we now collaborate
to ensure both customer and client satisfaction. And, we learned to
approach our relationships like we do for our client’s users, with
empathy for the other side.
Culture shapes employee engagement and the outcomes of any working environment and is the
backbone of any organization – big or small. And, it’s important to note that culture is dynamic, living
5 Tenets of Cultural Integration:
1. Rally around a unified vision
2. Pick your battles
3. Check your egos at the door
4. Empathy for the other side
5. Don’t try to harmonize cultures
and breathing, not something that’s static and belongs in a jar in a museum. With every new project
and through every new employee, your culture evolves. We’re a work in progress and we’re just
getting started, but we hope that our lessons learned from blending two disparate corporate cultures
will inspire others to do the same. After all, getting culture right is not just a key point of differentiation
for a company; it’s the enduring point of differentiation.
Comments? Find us on Twitter: @olof_s and @baijushah.

More Related Content

What's hot

Pop Up Coworking in Corporations
Pop Up Coworking in CorporationsPop Up Coworking in Corporations
Pop Up Coworking in Corporations
The OpenWork Agency
 
Article # 6 From Design Excellence to design as core competency
Article # 6 From Design Excellence to design as core competency Article # 6 From Design Excellence to design as core competency
Article # 6 From Design Excellence to design as core competency
Brigitte Borja de Mozota
 
Innovation Excellence Weekly - Issue 21
Innovation Excellence Weekly - Issue 21Innovation Excellence Weekly - Issue 21
Innovation Excellence Weekly - Issue 21
Innovation Excellence
 
Marketing Communication in Digital Age: presentation for BBDO Moscow Digital ...
Marketing Communication in Digital Age: presentation for BBDO Moscow Digital ...Marketing Communication in Digital Age: presentation for BBDO Moscow Digital ...
Marketing Communication in Digital Age: presentation for BBDO Moscow Digital ...
Zigurds Zakis
 
Riding the creative storm with Ruckus _ Top Interactive Agencies _ Best Digit...
Riding the creative storm with Ruckus _ Top Interactive Agencies _ Best Digit...Riding the creative storm with Ruckus _ Top Interactive Agencies _ Best Digit...
Riding the creative storm with Ruckus _ Top Interactive Agencies _ Best Digit...genycaloisi
 
The Design Management series 3/7 Challenges of Management
The Design Management series 3/7  Challenges of Management The Design Management series 3/7  Challenges of Management
The Design Management series 3/7 Challenges of Management
Brigitte Borja de Mozota
 
Design Management Excellence
Design Management Excellence Design Management Excellence
Design Management Excellence
Brigitte Borja de Mozota
 
Harvard GSD Design Thinking Seminar- Idris Mootee (part 1of10)
Harvard GSD Design Thinking Seminar- Idris Mootee (part 1of10)Harvard GSD Design Thinking Seminar- Idris Mootee (part 1of10)
Harvard GSD Design Thinking Seminar- Idris Mootee (part 1of10)
Idris Mootee
 
THE BUSINESS CASE FOR HUMAN-CENTERED DESIGN
THE BUSINESS CASE FOR HUMAN-CENTERED DESIGNTHE BUSINESS CASE FOR HUMAN-CENTERED DESIGN
THE BUSINESS CASE FOR HUMAN-CENTERED DESIGN
Human Capital Media
 
Design Strategy: The Rise of a New Culture
Design Strategy: The Rise of a New CultureDesign Strategy: The Rise of a New Culture
Design Strategy: The Rise of a New Culture
Payam Shalchian
 
Online Co-Creation to Accelerate Marketing & Innovation
Online Co-Creation to Accelerate Marketing & InnovationOnline Co-Creation to Accelerate Marketing & Innovation
Online Co-Creation to Accelerate Marketing & Innovation
eÿeka
 
Fronteer Strategy - Co-creation's 5 Guiding Principles
Fronteer Strategy - Co-creation's 5 Guiding PrinciplesFronteer Strategy - Co-creation's 5 Guiding Principles
Fronteer Strategy - Co-creation's 5 Guiding PrinciplesFronteer Strategy
 
Publicis Sapient Sydney Field Guide
Publicis Sapient Sydney Field GuidePublicis Sapient Sydney Field Guide
Publicis Sapient Sydney Field Guide
Publicis Sapient
 
Discover U
Discover UDiscover U
Discover U
MelindaNeely
 
Delaplaine Proposal
Delaplaine ProposalDelaplaine Proposal
Delaplaine ProposalKiley Baker
 
Innovation Excellence Weekly - Issue 11
Innovation Excellence Weekly - Issue 11Innovation Excellence Weekly - Issue 11
Innovation Excellence Weekly - Issue 11
Innovation Excellence
 
Going Native
Going NativeGoing Native
Going Native
Fjord
 

What's hot (19)

Pop Up Coworking in Corporations
Pop Up Coworking in CorporationsPop Up Coworking in Corporations
Pop Up Coworking in Corporations
 
Ideo Rf Guide
Ideo Rf GuideIdeo Rf Guide
Ideo Rf Guide
 
Article # 6 From Design Excellence to design as core competency
Article # 6 From Design Excellence to design as core competency Article # 6 From Design Excellence to design as core competency
Article # 6 From Design Excellence to design as core competency
 
Innovation Excellence Weekly - Issue 21
Innovation Excellence Weekly - Issue 21Innovation Excellence Weekly - Issue 21
Innovation Excellence Weekly - Issue 21
 
Marketing Communication in Digital Age: presentation for BBDO Moscow Digital ...
Marketing Communication in Digital Age: presentation for BBDO Moscow Digital ...Marketing Communication in Digital Age: presentation for BBDO Moscow Digital ...
Marketing Communication in Digital Age: presentation for BBDO Moscow Digital ...
 
Riding the creative storm with Ruckus _ Top Interactive Agencies _ Best Digit...
Riding the creative storm with Ruckus _ Top Interactive Agencies _ Best Digit...Riding the creative storm with Ruckus _ Top Interactive Agencies _ Best Digit...
Riding the creative storm with Ruckus _ Top Interactive Agencies _ Best Digit...
 
The Design Management series 3/7 Challenges of Management
The Design Management series 3/7  Challenges of Management The Design Management series 3/7  Challenges of Management
The Design Management series 3/7 Challenges of Management
 
Design Management Excellence
Design Management Excellence Design Management Excellence
Design Management Excellence
 
Harvard GSD Design Thinking Seminar- Idris Mootee (part 1of10)
Harvard GSD Design Thinking Seminar- Idris Mootee (part 1of10)Harvard GSD Design Thinking Seminar- Idris Mootee (part 1of10)
Harvard GSD Design Thinking Seminar- Idris Mootee (part 1of10)
 
THE BUSINESS CASE FOR HUMAN-CENTERED DESIGN
THE BUSINESS CASE FOR HUMAN-CENTERED DESIGNTHE BUSINESS CASE FOR HUMAN-CENTERED DESIGN
THE BUSINESS CASE FOR HUMAN-CENTERED DESIGN
 
Design Strategy: The Rise of a New Culture
Design Strategy: The Rise of a New CultureDesign Strategy: The Rise of a New Culture
Design Strategy: The Rise of a New Culture
 
Online Co-Creation to Accelerate Marketing & Innovation
Online Co-Creation to Accelerate Marketing & InnovationOnline Co-Creation to Accelerate Marketing & Innovation
Online Co-Creation to Accelerate Marketing & Innovation
 
Vnc essentials
Vnc essentialsVnc essentials
Vnc essentials
 
Fronteer Strategy - Co-creation's 5 Guiding Principles
Fronteer Strategy - Co-creation's 5 Guiding PrinciplesFronteer Strategy - Co-creation's 5 Guiding Principles
Fronteer Strategy - Co-creation's 5 Guiding Principles
 
Publicis Sapient Sydney Field Guide
Publicis Sapient Sydney Field GuidePublicis Sapient Sydney Field Guide
Publicis Sapient Sydney Field Guide
 
Discover U
Discover UDiscover U
Discover U
 
Delaplaine Proposal
Delaplaine ProposalDelaplaine Proposal
Delaplaine Proposal
 
Innovation Excellence Weekly - Issue 11
Innovation Excellence Weekly - Issue 11Innovation Excellence Weekly - Issue 11
Innovation Excellence Weekly - Issue 11
 
Going Native
Going NativeGoing Native
Going Native
 

Viewers also liked

Social Platform Cheat Sheet February 2016
Social Platform Cheat Sheet February 2016 Social Platform Cheat Sheet February 2016
Social Platform Cheat Sheet February 2016
360i
 
Mastering your Brand Story in the Digital Age with Andrea T Edwards
Mastering your Brand Story in the Digital Age with Andrea T EdwardsMastering your Brand Story in the Digital Age with Andrea T Edwards
Mastering your Brand Story in the Digital Age with Andrea T Edwards
Digimind
 
Klub MOJA NIVEA - case study
Klub MOJA NIVEA - case studyKlub MOJA NIVEA - case study
7 Predictions for 2017 from a Cloudy Crystal Ball
7 Predictions for 2017 from a Cloudy Crystal Ball 7 Predictions for 2017 from a Cloudy Crystal Ball
7 Predictions for 2017 from a Cloudy Crystal Ball
Young & Rubicam
 
360i's Digital Education for Nonprofits (the den) Recap Report
360i's Digital Education for Nonprofits (the den) Recap Report360i's Digital Education for Nonprofits (the den) Recap Report
360i's Digital Education for Nonprofits (the den) Recap Report
360i
 
Segments: Discovering How To Engage Unique Audiences
Segments: Discovering How To Engage Unique AudiencesSegments: Discovering How To Engage Unique Audiences
Segments: Discovering How To Engage Unique Audiences
Crimson Hexagon
 
Customer Generated Content: Things Marketers Should Know
Customer Generated Content: Things Marketers Should KnowCustomer Generated Content: Things Marketers Should Know
Customer Generated Content: Things Marketers Should Know
Sysomos
 
Social Media Report - Online Marketing Rockstars 2017
Social Media Report - Online Marketing Rockstars 2017Social Media Report - Online Marketing Rockstars 2017
Social Media Report - Online Marketing Rockstars 2017
Linkfluence
 
Vertical Video POV
Vertical Video POVVertical Video POV
Vertical Video POV
Ogilvy
 
Hootsuite's Manifesto: Building a Social Revolution
Hootsuite's Manifesto: Building a Social RevolutionHootsuite's Manifesto: Building a Social Revolution
Hootsuite's Manifesto: Building a Social Revolution
Hootsuite
 

Viewers also liked (10)

Social Platform Cheat Sheet February 2016
Social Platform Cheat Sheet February 2016 Social Platform Cheat Sheet February 2016
Social Platform Cheat Sheet February 2016
 
Mastering your Brand Story in the Digital Age with Andrea T Edwards
Mastering your Brand Story in the Digital Age with Andrea T EdwardsMastering your Brand Story in the Digital Age with Andrea T Edwards
Mastering your Brand Story in the Digital Age with Andrea T Edwards
 
Klub MOJA NIVEA - case study
Klub MOJA NIVEA - case studyKlub MOJA NIVEA - case study
Klub MOJA NIVEA - case study
 
7 Predictions for 2017 from a Cloudy Crystal Ball
7 Predictions for 2017 from a Cloudy Crystal Ball 7 Predictions for 2017 from a Cloudy Crystal Ball
7 Predictions for 2017 from a Cloudy Crystal Ball
 
360i's Digital Education for Nonprofits (the den) Recap Report
360i's Digital Education for Nonprofits (the den) Recap Report360i's Digital Education for Nonprofits (the den) Recap Report
360i's Digital Education for Nonprofits (the den) Recap Report
 
Segments: Discovering How To Engage Unique Audiences
Segments: Discovering How To Engage Unique AudiencesSegments: Discovering How To Engage Unique Audiences
Segments: Discovering How To Engage Unique Audiences
 
Customer Generated Content: Things Marketers Should Know
Customer Generated Content: Things Marketers Should KnowCustomer Generated Content: Things Marketers Should Know
Customer Generated Content: Things Marketers Should Know
 
Social Media Report - Online Marketing Rockstars 2017
Social Media Report - Online Marketing Rockstars 2017Social Media Report - Online Marketing Rockstars 2017
Social Media Report - Online Marketing Rockstars 2017
 
Vertical Video POV
Vertical Video POVVertical Video POV
Vertical Video POV
 
Hootsuite's Manifesto: Building a Social Revolution
Hootsuite's Manifesto: Building a Social RevolutionHootsuite's Manifesto: Building a Social Revolution
Hootsuite's Manifesto: Building a Social Revolution
 

Similar to FastCo_Cultural Integration

Design at Business Conference 2016 - Report
Design at Business Conference 2016 - ReportDesign at Business Conference 2016 - Report
Design at Business Conference 2016 - Report
Design at Business
 
The Spirit of Co-creation Whitepaper - Risk Managed Creativity For Business
The Spirit of Co-creation Whitepaper - Risk Managed Creativity For BusinessThe Spirit of Co-creation Whitepaper - Risk Managed Creativity For Business
The Spirit of Co-creation Whitepaper - Risk Managed Creativity For Business
Sense Worldwide
 
Intrapreneurship Conference Silicon Valley ebook
Intrapreneurship Conference Silicon Valley ebookIntrapreneurship Conference Silicon Valley ebook
Intrapreneurship Conference Silicon Valley ebook
Gapingvoid Culture Design Group
 
Transformative spaces magazine
Transformative spaces magazineTransformative spaces magazine
Transformative spaces magazine
Simon Morris
 
The Story of Engagement Factory
The Story of Engagement FactoryThe Story of Engagement Factory
The Story of Engagement Factory
Engagement Factory
 
Impact Report (2019-2021)
Impact Report (2019-2021)Impact Report (2019-2021)
Impact Report (2019-2021)
InnovatorsBox
 
Diversity, Equity & Inclusion - my perspective
Diversity, Equity & Inclusion - my perspectiveDiversity, Equity & Inclusion - my perspective
Diversity, Equity & Inclusion - my perspective
Simon Court
 
Diversity and Inclusion GameChangers FINAL
Diversity and Inclusion GameChangers FINALDiversity and Inclusion GameChangers FINAL
Diversity and Inclusion GameChangers FINALJett Pihakis
 
5 strenghts of the new agency
5 strenghts of the new agency5 strenghts of the new agency
5 strenghts of the new agencyGavunJohnston
 
EVB Read-Behind
EVB Read-BehindEVB Read-Behind
EVB Read-Behind
Shane Ginsberg
 
AuraTalk Issue 3
AuraTalk Issue 3AuraTalk Issue 3
Fjord Design From Within
Fjord Design From WithinFjord Design From Within
Fjord Design From Within
Fjord
 
Article: Diversity and Inclusion “D&I” in a Global Business Environment
Article: Diversity and Inclusion “D&I” in a Global Business EnvironmentArticle: Diversity and Inclusion “D&I” in a Global Business Environment
Article: Diversity and Inclusion “D&I” in a Global Business Environment
Hofstede Insights
 
The Locksley Group | About
The Locksley Group | AboutThe Locksley Group | About
The Locksley Group | AboutBlake P. Booker
 
The Findwise Spirit
The Findwise SpiritThe Findwise Spirit
The Findwise Spirit
Findwise
 
Enterprise 2.0, french touch : the white paper
Enterprise 2.0, french touch : the white paperEnterprise 2.0, french touch : the white paper
Enterprise 2.0, french touch : the white paper
Anthony Poncier
 
DME_poster_Francisandson-2014
DME_poster_Francisandson-2014DME_poster_Francisandson-2014
DME_poster_Francisandson-2014Ferenc B.
 
THL_Formula_AW_v2.0
THL_Formula_AW_v2.0THL_Formula_AW_v2.0
THL_Formula_AW_v2.0John Barrow
 
An Introduction to Creative Huddle
An Introduction to Creative HuddleAn Introduction to Creative Huddle
An Introduction to Creative Huddle
Creative Huddle
 

Similar to FastCo_Cultural Integration (20)

Design at Business Conference 2016 - Report
Design at Business Conference 2016 - ReportDesign at Business Conference 2016 - Report
Design at Business Conference 2016 - Report
 
The Spirit of Co-creation Whitepaper - Risk Managed Creativity For Business
The Spirit of Co-creation Whitepaper - Risk Managed Creativity For BusinessThe Spirit of Co-creation Whitepaper - Risk Managed Creativity For Business
The Spirit of Co-creation Whitepaper - Risk Managed Creativity For Business
 
Intrapreneurship Conference Silicon Valley ebook
Intrapreneurship Conference Silicon Valley ebookIntrapreneurship Conference Silicon Valley ebook
Intrapreneurship Conference Silicon Valley ebook
 
Transformative spaces magazine
Transformative spaces magazineTransformative spaces magazine
Transformative spaces magazine
 
The Story of Engagement Factory
The Story of Engagement FactoryThe Story of Engagement Factory
The Story of Engagement Factory
 
Impact Report (2019-2021)
Impact Report (2019-2021)Impact Report (2019-2021)
Impact Report (2019-2021)
 
Diversity, Equity & Inclusion - my perspective
Diversity, Equity & Inclusion - my perspectiveDiversity, Equity & Inclusion - my perspective
Diversity, Equity & Inclusion - my perspective
 
Diversity and Inclusion GameChangers FINAL
Diversity and Inclusion GameChangers FINALDiversity and Inclusion GameChangers FINAL
Diversity and Inclusion GameChangers FINAL
 
brandbook_110610
brandbook_110610brandbook_110610
brandbook_110610
 
5 strenghts of the new agency
5 strenghts of the new agency5 strenghts of the new agency
5 strenghts of the new agency
 
EVB Read-Behind
EVB Read-BehindEVB Read-Behind
EVB Read-Behind
 
AuraTalk Issue 3
AuraTalk Issue 3AuraTalk Issue 3
AuraTalk Issue 3
 
Fjord Design From Within
Fjord Design From WithinFjord Design From Within
Fjord Design From Within
 
Article: Diversity and Inclusion “D&I” in a Global Business Environment
Article: Diversity and Inclusion “D&I” in a Global Business EnvironmentArticle: Diversity and Inclusion “D&I” in a Global Business Environment
Article: Diversity and Inclusion “D&I” in a Global Business Environment
 
The Locksley Group | About
The Locksley Group | AboutThe Locksley Group | About
The Locksley Group | About
 
The Findwise Spirit
The Findwise SpiritThe Findwise Spirit
The Findwise Spirit
 
Enterprise 2.0, french touch : the white paper
Enterprise 2.0, french touch : the white paperEnterprise 2.0, french touch : the white paper
Enterprise 2.0, french touch : the white paper
 
DME_poster_Francisandson-2014
DME_poster_Francisandson-2014DME_poster_Francisandson-2014
DME_poster_Francisandson-2014
 
THL_Formula_AW_v2.0
THL_Formula_AW_v2.0THL_Formula_AW_v2.0
THL_Formula_AW_v2.0
 
An Introduction to Creative Huddle
An Introduction to Creative HuddleAn Introduction to Creative Huddle
An Introduction to Creative Huddle
 

FastCo_Cultural Integration

  • 1. [Drafted by David LaBar] CAN CORPORATE AND CREATIVE COMPANIES EVER TRULY MERGE? No. And That’s OK, writes Olof Schybergson, CEO, Fjord and Baiju Shah, MD, Accenture Interactive & Co-Lead at Fjord It has been said that the number one job of a CEO (and the entire C-Suite, really) is to cultivate culture. The notion being: if a strong culture exists, everything else – employee morale, customer satisfaction and other positive outcomes – will fall into place. But what happens when you bring together two vastly different cultures in a merger? In real life, they say opposites attract, but does that apply to business? The Reality of Now This was the issue we faced in 2013 when Accenture Interactive—the digital agency of the global professional services company Accenture -- acquired Fjord, a global design and innovation consultancy. And while the business logic of infusing design into business transformation work was obvious to us, we now faced the daunting task of integrating a global design boutique – filled with our free-spirited creatives, open studios, collaborative workspaces, and iterative thinking and experimentation – into a then 261,000-person firm best known for large-scale technology and business consulting. We told our people it wouldn’t be smooth. For our clients, we had to merge design sensibilities (think designer optimism vs. consultant pragmatism) and different disciplines (technology, business strategy, design) into one cohesive team. Studies show that 50-80% of mergers fail, and culture integration is often to blame. We knew the risk of messing this up was real. And we didn’t have experience with something on this scale. In short, we had to bridge from strategic intent to the practical reality of now. Some press had already written the merger off as ill-fitted before it even happened. Three years later, we not only successfully integrated, but Fjord has tripled the size of its team and expanded its footprint from two to six continents. We’ve had some stumbles along the way, but the reason we believe we have had success is because of something we learned early on, and still embrace today: You can’t merge cultures. Culture is a living, breathing thing. It’s always changing as an organization
  • 2. evolves. It shouldn’t be a one-size-fits-all approach. Today, embracing a culture of diversity and differences is what makes a great organization great. Take it one step further: culture should be approached strategically, like any core business function. So how did we go about creating our culture of cultures? Our North Star: A Unified Vision When two disparate entities unite in a business merger or acquisition, there’s often an immediate clash of cultures, an inherent “us-versus-them” bias. But, what happens when the larger corporation, instead of robbing the smaller brand of its identity, chooses to foster cultural integration through a unified vision? We knew we had a variety of skills (and cultures) at play, but understood that there had to be a shared belief system, an end goal that unites people, before any of these skills could be pooled together successfully. In our case, our belief was that enduring success for our clients will come from people-centricity, and our internal goal was ambitious: to create the world’s leading design and innovation firm while serving as a benchmark for how you successfully merge creative design, technology, and business strategy under one roof (long before it was all the rage to do so). Initially there was discomfort. For instance, consultants prefer recommendations that are information- rich and based on analysis, data and best practices, while designers focus on narrative and make recommendations based on insights and intuition. Through collaborating on work, this tension was flipped into a positive as the teams realized that a diversity of problem-solving approaches can be a strength, and they rallied around the vision to put the human first. The purpose became very tangible when we won joint client projects or jointly addressed heady challenges, ranging from taking the anxiety out of home buying or better managing diseases like ALS and diabetes. Combining two diverse cultures straight away isn't really feasible... it takes time and patience. It requires the leadership on both sides to have open minds that are ready to flex, to see beyond a brand identity and give credence to an organization where culture is at the heart of business. Companies should approach culture in a top-down and organic way – it’s deliberate and ever changing. There is no singular culture. Only a shared purpose, collaboration and a respect for the individual can hold it all together. Protecting and Celebrating What’s Special No matter their size, background or culture, all companies will enter a merger armed with their own strengths, so it’s all about recognizing what to combine and what to keep distinct. We recommend companies pick their battles carefully – and learn when to let go. In our case, Fjord’s open space studios were one area to protect. We knew we had something special in them as well as our unique design methodologies, all of which fuel creativity and inspire and bring clients into the design and iteration process in ways they often haven’t experienced before. Overall, we think the key ingredient to any successful integration is a combination of your strongest assets, capacities and talents – in service of client needs. For us it was about retaining Fjord’s singular focus on design and innovation to solve business challenges at the highest level. But at first, it was like two people speaking different languages. (It “A lot of pressure is taken off when you recognize that you don’t have to force a round peg into a square hole and accept that a company is a culture of cultures.”
  • 3. helped that Fjord joined Accenture Interactive, which is culturally most similar to Fjord and provided a bridge to the rest of Accenture.) Through ongoing education and mutual respect, Fjord came to understand the language and approach to technology and business consulting. At the same time, Accenture came to understand and embrace a design-forward approach – so much so that it is reimagining its entire employee experience, including enterprise systems and internal processes. For instance, we used Fjord's design thinking methodologies to overhaul the dreaded annual performance review. Inside Fjord we’ve even created a dedicated business unit called Fjord Evolution, teaching leading companies how to elevate the importance of design in their organizations. We set out to debunk the whole premise that cultures must unite to become one. In fact, we think successful integration is about collaboration – it takes place while solving joint client problems. In fact, we proffer that companies shouldn’t get too hung up on culture unification. Business strategists can still show up in business attire, technologists can show up in khakis, and designers can arrive in jeans, if that is what keeps them authentic and comfortable. A lot of pressure is taken off when you accept that a large company is a culture of cultures and recognize that you don’t have to force a round peg into a square hole. On the flip side, we found that Accenture gave our design team a world-class commercial foundation, a global reach, a solid backbone, and a network of thousands of the brightest, deepest experts in virtually any area you might come across. It helped that Fjord joined Accenture Interactive, Accenture’s digital agency, which provided a cultural bridge to the rest of Accenture and offered Fjord access to more clients than it would have had standing alone. People who originally came from different units developed a mutual respect and understanding of each other’s strengths. When empty pride and hubris is laid to rest, you accept and discover the humble precept that there’s something to learn from everyone, a democratizing view that the sum is greater than its individual parts. Business strategists, technologists, designers – each bring a unique asset to the table, and the most successful companies today (like Google) make a multi-disciplinary approach fundamental to their business. Each party united by a common belief that they’re better together – and ultimately, raising the end game. You Can’t Indoctrinate Culture With so many vast differences at the outset, transparent dialogue and collaboration among leadership were also vital for building trust. With any collaboration, it shouldn't be about the “big boys moving in on the little guy.” We learned to check our egos at the door and became open to learning from one another. It hasn't all been smooth sailing, and aligning two completely different working styles can prove tricky. But instead of entering into a battle of ‘who does what right,’ we understood there were different perspectives at play and that our two different operational and cultural methods could be successful together. While Fjord had always approached problems with a more end- user focus and Accenture more client-centric, we now collaborate to ensure both customer and client satisfaction. And, we learned to approach our relationships like we do for our client’s users, with empathy for the other side. Culture shapes employee engagement and the outcomes of any working environment and is the backbone of any organization – big or small. And, it’s important to note that culture is dynamic, living 5 Tenets of Cultural Integration: 1. Rally around a unified vision 2. Pick your battles 3. Check your egos at the door 4. Empathy for the other side 5. Don’t try to harmonize cultures
  • 4. and breathing, not something that’s static and belongs in a jar in a museum. With every new project and through every new employee, your culture evolves. We’re a work in progress and we’re just getting started, but we hope that our lessons learned from blending two disparate corporate cultures will inspire others to do the same. After all, getting culture right is not just a key point of differentiation for a company; it’s the enduring point of differentiation. Comments? Find us on Twitter: @olof_s and @baijushah.