HCI Webinar: The Impact of Acquisitions On Company Culture, with Cathy Wassenaar and David Berkal

In the latest HCI Webinar, Dr. Jonathan H. Westover talks with Cathy Wassenaar and David Berkal about the impact of acquisitions on company culture. Below is a summary of the main points from their conversation! Check out the full episode and let us know what you think!

Watch the episode here:

Quick Recap

The team discussed the impact of acquisitions on company culture, with a focus on the importance of effective communication, transparency, and preserving unique company cultures. They also explored the growth opportunities and career advancement possibilities within their respective companies, emphasizing the importance of maintaining trust and open communication during transitions. The conversation highlighted the differences between typical acquisitions and their approach of buying and holding businesses, allowing them to grow further without disruption.

Acquisitions and Company Culture Discussion

Jonathan, David, and Cathy discussed the impact of acquisitions on company culture. Jonathan, a consultant and professor in HR and org leadership, emphasized the importance of considering the long-term cultural and people-related impacts of acquisitions. Cathy, CEO of NCT Casework Software, shared her background and experience with the company, including its acquisition by Banyan. David, CEO of Banyan software, also shared his background and entrepreneurial experience. The conversation was set to explore the cultural and people-related aspects of acquisitions and mergers.

Acquisitions' Impact on Company Culture Discussion

David and Jonathan discussed the impact of acquisitions on company culture. David emphasized that acquisitions often create fear, anxiety, and disruption, especially when a company is acquired by a competitor or a traditional investment firm. He contrasted this with their approach of buying and holding businesses, allowing them to grow further without disruption. Jonathan then asked David to provide a high-level overview of the major impacts of acquisitions on company culture, to which David responded by comparing and contrasting typical acquisitions with their approach. He suggested that acquisitions can bring new ideas and energy to an organization, but there is good reason for employees to be concerned.

Acquisition Impact and Support Discussion

Cathy discussed the positive impact of the acquisition on their company, emphasizing the preservation of their culture, customers, and team. She mentioned that all their customers and team members stayed, and the acquisition allowed them to take on new challenges and grow. Cathy praised David's hiring practices and the support they've received from David's team, including access to a network of experienced founders and operating partners. Jonathan then asked for any cautionary advice for organizations going through acquisitions, but the transcript does not provide a response to this question.

Effective Communication and Trust During Transition

Jonathan, David, and Cathy discussed the importance of effective communication and transparency during a company's transition period, particularly during an acquisition. They emphasized the need to overcommunicate and be open with employees to alleviate fears and anxieties. They also highlighted the importance of listening to employees' concerns and not taking a cookie-cutter approach to maintaining each company's unique culture. The team agreed that trust is crucial during such times and that it's essential to go beyond the usual communication levels to maintain and build trust with employees.

Company Growth, Career Advancement, and Ecosystem

Cathy discussed the growth of their company, NCT, and the opportunities it presents for team members to advance in their careers. She emphasized that if team members choose to leave, they should do so to another Banyan company, ensuring they remain within the ecosystem. David agreed with Cathy's sentiments, highlighting the importance of framing the future positively and having open conversations about changes. He also mentioned a process for understanding what day one and day two look like, and the significance of hallway conversations with managers. Jonathan did not contribute to the discussion.

Listen to the webinar here: