First National Bank, a leading retail bank, and Rand Merchant
Bank, a successful investment bank, merged. The CEO, knowing that large
mergers seldom create true shareholder value, called in SBE to assist. The
cultures of the two organizations were opposite. One was bureaucratic
and strategic in its thinking; the other had a stellar reputation for quick-moving
opportunism and entrepreneurship. Whichever culture the new entity adopted
ran the risk of alienating executives committed to the other culture. The
new entity could not afford to risk losing any of its human capital.
SBE created a Business Philosophy for the newly merged entity, much more
powerful than either company previously enjoyed. This unique Business
Philosophy, congruent with the cultures of both merging organizations, defined
the unique offering of the new entity. This liberated innovation,
encouraged meaningful cross-learning, and opened the doors to hitherto unimagined
competitive space. The teams from both companies performed better
than before, and no talent was lost. The CEO attributed that merger's
success to the work of SBE.