Southern Star Duplitek: Building One Culture after a Merger

Australia's largest duplicator of CD's, DVD's and video cassettes, SSD is a high volume business with three plants and 400 staff across two states.

To leverage economies of scale, SSD merged with former arch rival PMI in 2001. The challenges of integration included moving plant and infrastructure to shared locations, developing common IT systems, and creating One Culture.

Whilst the tangible changes were complex and required extensive project management, the greatest challenge was in uniting the hearts and minds of what were two fiercely competitive groups.

SSD looked to DaPo Consulting for help, having established a partnershi over the previous 3 years

Building One Culture

In collaboration with the client, a programme of cultural merging was designed, involving a kick off conference, the introduction of "cross team/ all levels" communication processes, and coaching of managers.

Burying the Past & Hall of Fame

The conference began with a symbolic event that was designed uniquely for the group. A funeral was staged, complete with coffin and undertakers. Staff and managers from both businesses shared a brief period of reflection, in which they remembered any grievances past and current that they wanted to leave behind. Captured on cards, these were then posted in the coffin, which was solemnly marched to a fire and burned.

Whilst somewhat tongue in cheek, the process enabled people to bury the hatchet on some of the challenges of the recent transition.

The following morning, people were encouraged to recount highlights, notable events, and great people from each of the two businesses past. This helped each understand more of the corporate memory and forces that had led to the differences in culture of the 2 businesses.

The remainder of the conference was conducted using "Open Space Technology". This process enabled individuals to discuss and champion issues they were passionate about, and helped to build relationships and awareness of shared concerns and challenges.

Communication Cafe's

Back at work, supervisors and managers were keen to capitalise on the energy that had been unleashed.

A new communication process was introduced over a period of months. Held in the cafeteria, people from different functions and hierarchial levels were invited to discuss a central theme or question relating to One Culture. A process of small group interaction at cafe's, with rotations and cross fertilisation enabled rich dialogue and deeper solutions to problems arising across the business.

Each group encouraged the continuation of the process for subsequent groups, and a ground swell of support for the "Cafe's" developed.

On a monthly basis, "Conversation Cafe's" are held, with a 1 hour meeting occurring for each of 3 shifts. At least one senior manager attends each.

The benefits are manyfold. Many operational issues are being solved, through better understanding of other functional perspective's, and through active participation of a diverse group.

In addition, barriers between staff and workers are breaking down. Staff are encouraged by management's commitment to be involved, and managers gain better appreciation for the cross functional nature of performance issues.

A self sustaining process

The "Cafe" process is practical and common sense, and has been adopted within the business. A leader administers the dates and invitations, and facilitators have been trained to conduct the process.

Coaching

The Open Space, and Cafe forums encouraged managers to adopt a more open and receptive style. New skills were sought, abeit each manager identified their own unique needs and skill gaps. To efficiently address these gaps, One to One coaching programmes were conducted for each manager. This involved 5 x 1 hour meetings between manager and coach.

Each manager involved reported great benefit in the reflection and insights they gained into their people management challenges. This helped them to be more effective in the still changing environment.

The Results

Twelve months on from the merger, the business has significantly increased throughput whilst maintaining all key customers. Morale has been initially maintained, and then increased as staff have been engaged in the changes around them.

Communication and Awareness

Staff report being better informed of changes, and perceive an increase in their involvement with decisions. Recently, a new extension to a warehouse required planning and fitting out. Multiple groups were involved in Cafe style meetings and as a result, the fit out works efficiently and there is greater acceptance of the change.

Knowledge sharing

Operational issues have been solved, leading to greater effectiveness and reduced rework.

For example, completion of customer orders required traceability back to the initiator of the job, and yet shifts were passing unfinished jobs forward without the owner being traceable.

This issues affected cross functional and cross shift teams, and was solved through more effective communication and understanding

One Culture

The processes have helped more rapid integration of two cultures into one. Staff no longer describe an Us and Them culture, and together they have forged a new culture of greater co-operation and openness.