Experience has shown that co-operation between organisations is not a straightforward, easy affair. In fact, the majority of international transactions perform below expectations. Failure can be extremely costly.

Practitioners and researchers agree that culture plays a very important role in any international transaction whether it is a short-term co-operation, a long-term partnership, setting up a joint venture or going through a merger or acquisition.


Tungli Consulting Cultural Due Diligence

It is preferable to conduct a Cultural due diligence before an international transaction takes place so that the final decision about any deal can be made in the knowledge of potential cultural pitfalls. Should this not be possible, Tungli Consulting can assist in the integration process after the deal is completed. Typically the following steps are taken:
         
  • Diagnosis of the compatibility of organisational and national cultures
              
    In order to identify potential conflict situations, Tungli Consulting analyses the match between strategies, structure, organisational values, management practices and information flows of the organisations involved in the transaction. Methods include using questionnaires, interviews and focus group discussions.
         
  • Offering solutions to pre-empt and/or to solve conflict situations

    Once the potential (or real) problems are identified, Tungli Consulting determines the solutions. This is done in close co-operation with the management teams of the organisations in order to achieve optimal results. Solutions include drawing up "the communication plan" (see below), cross-cultural training, team-building and/or individual coaching.
         
  • The communication plan

    One of the very key factors in a successful international transaction is appropriate and timely communication. That is external communication, communication among management and communication between the management and the employees. Tungli Consulting assists you to work out a "communication plan". After the strategy is agreed, this plan sets deadlines and identifies ways to maximise employee support and loyalty; and to minimise uncertainty and fear of losing employment in the organisations. Communication means may include circulars, emails, telephone calls, one-to-one meetings, departmental and country meetings.