Page 273 -

256 Chapter 7

Box 7.6
An example: ICL

ICL Ltd ( Bhatt 2000 ) developed a “ conversation for change ” program whereby all employ-
ees are asked to provide input in setting directions. The CEO invites all employees to
participate in the program. In addition, all executives use online chat sessions to discuss
staff issues in an open and nonjudgmental environment. This style of openness generates
a feeling of “ wanting, ” which can be very powerful in generating commitment and loyalty.
The staff feels their views and opinions are wanted and whatever they say will infl uence
the future vision. Every view is considered valid and important. The CEO also set up a
web space whereby any questions asked of him are posted with replies for all to see. ICL
is an example of many companies where leaders are changing the way they lead. These
leaders are not simply providing lip service, but genuinely believe that knowledge is a key
asset and that asset largely consists of the people in the organization.

Box 7.7
An example: Xerox

Xerox Corporation global service technicians exchange most of what they know through
informal networks ( Roberts-Witt 2002 ). Technicians recount war stories face-to-face, but
this is not effective across all the service teams. The Eureka system was designed to capture
this tacit knowledge and make it more widely available. Technicians generally take a great
deal of pride in their ability to innovate. Recognition, rather than fi nancial reward, turned
out to be a major motivator in the sharing of their stories. The author ’ s name is displayed
prominently next to each tip in the system in order to reinforce this incentive. Each tip
is peer reviewed. In its fi rst month, over 5,000 tips were entered into Eureka.

Impact of a Merger on Culture
Culture has been called the DNA of organizations. It is about patterns of human
interaction that are often deeply ingrained. While not directly observable, culture is
the defi ning, and in many cases, limiting, factor in creating a new entity that will be
healthy, integrated, balanced, coherent, and effective. What is the impact of a merger
on the organizational culture of both organizations? One of the hopes of a merger is
a new organization, with a new culture that is more than the sum of its parts. Given
this, the question above can be asked in another way that is really more appropriate
for the situation: What is the impact of organizational culture on the merger process
and on the newly created entity?
Dayaram (2005) has shown that some of the most critical issues that arise in post-
merger integration are in the area of culture. When you have two organizations