S

LONG DISTANCE CULTURAL

INTEGRATION

Vikram Dahiya

IIM Rohtak

DIGIWISE TECHNOLOGIES

AI COBB

Acquisition (2004)

AI COBB

DIGIWISE

Technologies

Case Description

Within one year of acquisition of AI COBB the combined product and services were proving to be a good fit for NGS

There’s a potential for more growth and success provided the various cross- cultural integration issues between the two companies be resolved.

Therefore the case presents a leadership challenge to the management of Digiwise technologies in integrating different organizational cultures utilizing mostly virtual communication strategies.

5 W’s and 1 H

Who : Human resource management of Digiwise Technologies and the employees of Al Cobb.

What : Difference in the corporate culture of the two organizations leading to various communication issues between the employees.

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.

Continued…

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.

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.

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.

PAIBOC MODEL

From Jessica meson’s (HR manager , DIGIWISE technologies) perspective

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.

Audience: Employees NGS. Ex AI COBB employees Core DIGIWISE employees

Continued…

Information : send information about digiwise work culture & action

Benefits :common set of values would help them to overcome the difficulties of not knowing each other personally

Continued…

Objections : difficulty in Change in the core values and acceptance of new values.

perception of DIGIWISE as a dominating company.

Context : In order to resolve the current cultural and communication issues between the employees and give them a feeling of organizational citizenship.

ISSUES

The upper management at DIGIWISE has not taken the cultural integration issue as a priority even after repetitive reminders from the HR.

Digiwise has not been able to make AI COBB employees feel a part of DIGIWISE .

Geographical isolation leading to long distance virtual interaction.

Work procedure : Decision making practices

Communication style.

One way communication .

MIXING VALUES

Unique Site-based values : Seattle, san Francisco, Denver, Miami, Chicago, Birmingham, Oslo

National values:United States, England, Norway

Historical values: CompuOptionsDigiwiseAI COBB

NGS

NGS :A DIGIWISE Technology business unit.

DILEMMA  

What decision making styles should be adopted by DIGIWISE ?

If some style contradicts a DIGIWISE core values , such as participation ?

To what extent ex-AI COBB employees can participate in decision making ?

EFFECTIVE SOLUTIONS

Diversity training for managersPros : understanding of each others cultureCons : adaptability issues

Appreciating AI COBB employees for quality workPros: motivation factor , increases involvement Cons: discontent among AI COBB employees

Transfer of employees to different working sites.Pros: Cultural IntegrationCons: Emotional mismatch , may be performing well in a specific team.

Continued …

Organizing team outing and Rejuvenating trips : increase interaction.

Pros: increased team work efficiencyCons: expenses , objection to go with family

Strict adherence to DIGIWISE values.Pros: strict working culture, short Cons: Discontent among AI COBB employees

Video-conferencing instead of tele-conferencingPros: exchange of expressions, observing responseCons: dissatisfaction regarding work environment

Continued …

EMPATHY : Imagine yourself in the cultural shoes of others.

Pros: give respect get respectCons: wrong perception, stereotyping

COLLECTIVISM: Harmony and loyalty , avoid confrontation.Pros: joyous work environmentCons: emotional involvement at professional workspace

Effective two way communicationPros: better understandingCons: clash of opinions

Resist Stereotyping.

Tolerance of ambiguity.

Respect for differences.

S

THANK YOU .