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Employee Health & Wellness company

Sharpening negotiation strategy prior to an acquisition

Challenge

As part of its growth strategy for acquisition in the health sector, the client planned to acquire a privately-held, owner-run Employee Health & Wellness company with 170 clinics in 17 cities and 450 employees. Financial, legal and human resources due diligence had already been completed, but the client was apprehensive that the existing culture of the target company, shaped by inadequate management, would pose serious impediments to meeting ambitious business targets for the new organization.

Product solution: MnAgenome

Culturelytics deployed its analytics platform, MnAgenome™, to understand the cultural issues in the target company that traditional due diligence had overlooked. Detailed data discovery in the areas of culture, HR and finance revealed that nearly 50% of the seller’s business was at risk from poor employee and customer engagement. Our proprietary PULSE culture assessment uncovered reasons for this, including misaligned values, leader competencies and influence networks. When all this data was fed into our analytics platform, it calculated a low Culture Coherence Quotient (CCQ) score (60 out of 100), and a Value Adjustment Factor of 6%, indicating that the company was worth 6% less than the original valuation by the buyer.

Outcomes

The cultural insights provided by MnAgenome in the pre-deal stage of this acquisition enabled the buyer to adopt a smarter negotiating strategy and ensure that the transaction would create value. The valuation price was adjusted downwards by 8% to reflect the significant risk that the seller’s existing culture posed to future growth, and a post-acquisition integration strategy was put in place for building an aligned, high-performance culture to support rapid growth in the newly-created business.

Global Indian bank

Managing the impact of culture on post-acquisition performance

Challenge

As part of its vision to become a lender of global proportions, a leading Indian bank undertook a major expansion program, acquiring seven other banks across the country. But following the acquisition – contrary to forecasts and for the first time in the bank’s history – growth rates declined. Management suspected that misaligned culture posed a key impediment to growth, with employee and customer expectations varying widely across the new organization. To realise the opportunities of acquisition, the bank would have to build an aligned culture focused on exceptional performance. But management didn’t have the tools to understand or address this cultural integration challenge.

Product solution: InGenome

Culturelytics deployed its analytics platform, InGenome™, to the bank’s business across a selected geographic area, to provide a rigorous, detailed understanding of its post-acquisition integration challenges and offer data-based solutions for creating a high-performance, customer-focused culture among all employees.

Outcomes

One of India’s leading providers of HCM (Human Capital Management) solutions, the client has more than 600 employees in 4 locations across India, along with 10 sales offices internationally, providing continuous back-office support to more than 700 clients around the world.

Government-mandated COVID-19 lockdown meant that business practices at the company had to change overnight. Ways of working were disrupted, with team leadership and client relations suddenly becoming 100% virtual. It was vital for the company to engage employees, to maintain a customer-centric culture and to help re-vision operations to thrive in the new environment.

Wealth Management Advisory firm

Planning cultural transformation to support accelerated growth

Challenge

The client was seeing rapid changes in the market for its advisory services, requiring them to enhance their core service, offer a new range of niche services to suit different customer needs, and exit from under-performing lines of business. A new CEO was hired to navigate these changes, and the firm embarked on a cultural transformation project to ensure that employees were aligned with its new approach to creating value for customers and shareholders.

Product solution: CultureGenome

Culturelytics deployed its analytics platform, CultureGenome™, to help the client ensure that its cultural transformation initiatives were effective. Our proprietary PULSE assessment survey was used to understand employee values and where they were not yet aligned with the new business mandate, along with their adaptability and leaders’ competencies in managing change. Our analysis calculated a low Culture Coherence Quotient (CCQ) score (68 out of 100), indicating cultural dysfunction following restructuring, and a Culture Risk Indicator (CRI) of 3.9%, meaning they could miss their business targets by nearly 4% due to cultural factors.

Outcomes

The cultural insights provided by CultureGenome had a major impact on the success of client’s cultural transformation project. Within 12 months, their CCQ score had climbed from 68% to 82% and the risk posed by cultural misalignment reduced by half. As a result, new hires more than doubled, attrition decreased, and the firm was able to meet adjusted financial targets that exceeded the expectations of its Board of Directors.

Global human capital management firm

Ensuring efficient, client-focused workforce post-Covid

Challenge

One of India’s leading providers of HCM (Human Capital Management) solutions, the client has more than 600 employees in 4 locations across India, along with 10 sales offices internationally, providing continuous back-office support to more than 700 clients around the world.

Government-mandated COVID-19 lockdown meant that business practices at the company had to change overnight. Ways of working were disrupted, with team leadership and client relations suddenly becoming 100% virtual. It was vital for the company to engage employees, to maintain a customer-centric culture and to help re-vision operations to thrive in the new environment.

Product solution: Beats with Kaiwa Chatbot

Our interactive chatbot, Kaiwa, was used to engage employees in a conversational way to assess their attitudes about well-being under COVID, about working from home, and about the different dimensions of their work experience: their job, team, leadership and the organization as a whole.

While responses revealed a number of positive employee sentiments, the company’s overall Beats employee sentiment score (3.25 out of 5) represented an overall ‘limiting’ employee attitude, indicating an immediate need to address particular issues identified in the survey, including the need to: provide additional WFH technology support; further embed a commitment to quality customer service especially among young employees; foster greater cross-team collaboration; and provide rigorous COVID health checks and counselling support to ensure safety and wellness and assist those who have struggled under lockdown. 

Business outcomes

The results from Beats clearly showed that work-from-home was a viable option for the company’s operating model. This gave management the confidence to proceed with building policies for embedding and expanding WFH, optimizing workforce numbers and roles, and reconfiguring the use of office space. At the same time, it clearly identified where additional help and support was needed to make the new business model work, and to ensure productivity and positive engagement across the employee population.

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