Introduction This paper is part of a series about advanced M&A cultural The reason for this approach is that these firms concluded practices. The intent of the series is to share the current state many years ago that cultural problems are a major factor of leading practices in cultural work, specifically and only for contributing to deal failures. While they had seen all the the M&A situation. publicly available research on how cultural problems led to deal failure, it was their own specific reviews of the success It is based on the findings from a unique and highly or otherwise of their own deals, led by their corporate experienced group of M&A practitioners that meet on a development function, that gave them the reason to improve regular basis with Willis Towers Watson to share and discuss their overall approach to culture, both in the acquisition phase their views on this area. Each firm’s participants are drawn — when they are spending capital — and in the integration from its in-house M&A functions, representing corporate phases and beyond — when the return on the capital invested development, business development or corporate strategy is expected to materialize. (the term varies based on each firm’s internal definition of the role) and its Human Resources M&A group. Throughout the As a result, the group of M&A practitioners developed their series, the content reflects the discussions within the group approach to address culture in a structured way, similar to and not the sole practices of any one firm. how their firms approached any business problem (i.e., being clear on the root causes and problems, and the goals and The distinguishing feature about the group that will also risks or costs and benefits of any analysis, explained in terms help readers understand the content better is that cultural a business leader could understand). investigations are an accepted part of their M&A process. This means that the focus of the paper is on: This paper shows how they first brought that structure and discipline to cultural discussions through capturing in one ƒ What they do in culture work place the parts of culture that have the greatest impact on ƒ When and how they do it a transaction. This was accomplished by creating a cultural framework built for M&A purposes, to facilitate the structured This paper does not address why they should do the work in and organized discussions in this area taking place. This the first place, which is the subject of a separate article in the framework formed the platform for ongoing cultural series. investigations because it more precisely maps culture’s impact on deal outcomes, goals and risks. As one participant commented, “Culture is a business imperative for us; it is not investigating culture for culture’s sake.” 2 willistowerswatson.com