Can Two Rights Make a Wrong? Insights from IBM's Tangible Culture Approach

Citation

Austin, A. (2007), "Can Two Rights Make a Wrong? Insights from IBM's Tangible Culture Approach", Leadership & Organization Development Journal, Vol. 28 No. 1, pp. 92-93. https://doi.org/10.1108/01437730710731583

In 2002, IBM acquired PricewaterhouseCoopers Consulting (PWCC) for $3.5 billion. IBM's existing in‐house consulting organization – Business Innovation Services, consisting of 30,000 executives and employees globally, was merged with the 30,000 partners and consultants of PWCC to create an integrated unit which they gave a new name: Business Consulting Services (BCS). A goal stated at the outset was that the newly‐formed business would leverage the best aspects of both components, and not simply adopt the business practices of one or the other. Easier said than done, as any organizational change professional will attest.

The approach IBM took and the results of that approach are the subject of this book. The two “Rights” of the title are IBM's Business Innovation Services, and PWC Consulting Services, both of whom were successful entities before the merger. In fact, PWCC had announced their intention to go public in the months before the acquisition. IBM, well known for their business and technology expertise, wanted to strengthen their consulting to enable IBM clients to simplify implementation and decision making. As can be the case, this sounds good on paper, but could it be successful in reality? Long term business results will bring the ultimate answer, but in the short term the groups have melded and the new entity is thriving.

What began as two organizations with very different business models, cultures, leadership styles, and decision‐making methods came together to form a single consulting group through a process dubbed the “tangible culture approach.” The IBM Change and Culture team used the example of an arranged marriage as their guiding analogy for the design of the integration process; the two parties didn't really know one another, much less like each other. A happy and functional family needed to emerge from their efforts.

The book is part corporate process memoir and part field guide. Reger describes what the Change and Culture team did, how they did it and what they would have done if they had it to do all over again. But the author goes much further in providing a detailed roadmap for anyone to follow for their own organizational changes. IBM knew from the beginning that forcing the group into pre‐determined categories or methodologies would not work. They had the patience to allow the new working norms and culture of the group to emerge without compromising the quality of their results. This book hits a new high among organizational change books that address the usually ill‐defined and illusive topic of culture.

This book consists of 14 chapters presented in three sections; The Basics, The Application and The Projects. Section I, The Basics contains seven chapters covering an overview of Tangible Culture and IBM's approach to creating it, and setting out recommendations on how to use the book depending on one's needs and desired outcomes. Section II, The Application, contains five chapters that comprise the guidebook. One chapter each discusses how to use the Tangible culture approach in Mergers and Acquisitions, Alliances, restructuring, transformative change, and in making key decisions and running the organizations everyday business. Finally, Section III's two chapters delve into how other organizations have used IBM's approach to clarify expectations for stakeholders through CRM (Client Relationship Management), done by a Canadian group of companies and techniques that can aid in differentiating issues within a different IBM initiative, the Sales Pipeline.

For me, the most valuable part of the book is the description of the tools IBM used and how each worked. The Change and Culture group combined known practices with processes they developed and evolved. Story‐telling techniques, Outcome Narratives, Right vs Right, and other powerful tools are all clearly described and ready to be imported and adapted for use in mergers, acquisitions, initiatives and organizational changes of almost any type.

This is not a book to read straight through and then leave on your shelf. It needs to be used and used often – getting the pages grubby from use. Chapter 1 gives suggestions for how to get value from the content based on what you are hoping to achieve. I believe that all OD professionals and change leaders should read the basics of creating a Tangible culture (Section II) and keep it in mind when going about the business of your company. Then review as needed, the sections that address changes in your organization, past, present or future, e.g. acquisition, transformation, and so on. This process of discovering the tangible culture in your organization is an emergent one. No one should assume that these tools are all that are needed, but can be viewed as jump‐starts, inspiration, and seeds to get you started. Feel free to adapt, modify and extend as needed to reach the goals for your application successfully. This book is destined to be a classic in the field.