Culture Mesh or Culture Clash?

Last week I was fortunate enough to be asked to deliver a presentation on partnership agreements in a one-firm culture – one of the rapidly emerging shifts in the profession as CPA practices gradually wean themselves away from the “eat what you kill” book of business culture.

I have not seen my session reviews just yet, so I’m unable to tell you if I got through to my audience. If the folks at the AICPA send along a note thanking me for my participation and little else, I’ll know that it’s time to begin lobbying for another organization to speak before.

Mine was hardly the only session at the confab which addressed the quantum changes going on in the profession, but one attendee pulled me aside later and explained that they were in dialogue with a potential successor firm for an upstream merger and asked what were the categories they should be reviewing to determine if it would be a good “fit.”

Immediately I began my soliloquy on the 4Cs – chemistry, culture, capacity and continuity – the quartet essential to any successful merger. He seemed to quickly grasp three out of the four but stumbled a bit on culture.

“How do we know if our cultures are a good fit?”

I explained that with regard to compatible or, in some cases, incompatible, cultures, there are some things that are obvious – i.e. – a blue jeans and polo shirt dress code versus a shite shirt and tie or an open door management policy as opposed to an ivory tower mentality.

Then there are things that may not be so clear.

For example you may want to take a moment and picture yourself as a client and imagine what it’s like to be a client at this particular firm. Is it a place where you would be made to feel comfortable? How about an employee of the firm? Do the employees look happy and relaxed? Are they having fun and enjoying what they do or do they appear like they’ve been asked to scrub the pots and pans after a huge dinner party?

And finally, what’s it like to be a partner in the firm? Are they engaged in all aspects of the practice or is the firm run by a majority stakeholder with an almost despotic rule on governance and compensation?

He seemed to understand my recommendations on culture and told him if he needed advice with anything in the M&A arena, that’s sort of what we do.

I think I’ll get a positive review from at least one attendee.