It is October. Summer is a distant memory and we wait for the next thunderstorm. There is water everywhere, puddles have puddles. There are soggy leaves all over my garden and drive, every time I go out I track them into the house. Autumn is my favourite season but not when it is like this.
A couple of young friends are already making plans with me for half term. Is time really going that fast?
And a few people are mentioning Christmas. How dare they? Too soon by a long way.

What am I thinking about?
Culture!
No, not opera, ballet and Shakespeare but the informal ways in which our businesses operate. What do we stand for. How do we do things here?
It all started because three of my clients are working on their exit strategies. In all three cases this will involve a sale of one sort or another. These are longer term plans rather than for the next six months but the criteria are starting to come together:

What do I want from the future? Another challenge? Another business? How much money is my business worth? Is it in the shape it needs to be to be saleable? What do I need to do and which relationships do I need to nurture to connect with the right professionals who will lead me to the right buyer? Am I prepared to commit to staying on for twelve months or so to make the transfer more effective?
What are my criteria for a perfect buyer? It is about so much more than the sale price. Who will I trust with my baby and how will I know whether they are worthy?

I have been involved in a fair few purchases, sales and mergers. I ought to say straight out I do not believe in mergers. It is a weasel term to skirt round which of the players will be the main partner, in the ascendant and probably determining which employees are invited to walk the plank. This might sound cynical but in my experience that is the reality.

Reflecting on times when I have been part of a due diligence team one element has always been to investigate the present culture and how challenging it might be to merge it with “ours”. How quickly a common culture evolves will determine how quickly the new business becomes effective.
I think and believe that it is possible to bring two businesses together elegantly and happily if the choice is made well. It is all about the culture, ethics and values and do the two aspects of the two businesses mirror each other?

When we establish our businesses we make very conscious and important decisions about how we want it to be. What matters to us? In my case my business is all about helping my clients develop their talents and potential. I will always be a cheerleader so I have to like the person and the business sector they are in. I also believe all business is about relationships rather than transactional. I have good relationships with my suppliers these are my partners. My business is tiny but enjoying the work and the relationships is very important. Communication is paramount. I do subscribe to equal relationships and not those which are based on power, money or influence.

I am sure you could describe your values in similar terms. Values drive your culture.
My clients are looking for purchasers whose culture matches theirs especially as they are all contemplating a consultancy or a work relationship which might continue for a year or two after the sale.

So how do you evaluate culture? I am currently besotted by a series called New Amsterdam on Netflix. It is about a public hospital in New York – Casualty it is not! Max, a new and driven Medical Director comes in. His first act is to call together everyone who works in the hospital. He sacks the entire Cardiothoracic department publicly because they are billing too much money. They were doing what they thought they were supposed to do but in his view not in a public hospital; so this was a total volte-face. After they have left the meeting he asks his killer question “How can I help?”. Stunned a couple of answers are eventually given, he says “yes” and the things happen quickly. This is so far from “I’m from head office, how can I help you?”. It is all about thinking outside the box, making a quick (but informed) decision and then making it happen, fast. Needless to say it creates change and total trust in Max because he gets things done quickly with the good of the patients always at the centre. The focus is crystal clear. I find his management style fascinating. This does not mean perfect. He is too demanding of himself and others, but in that order.

So how do you do this? Using my example I spoke about equality in my business. I never ever use those letters after my name to which I am entitled. What relevance do they have other than to have got me to this point in life? I spoke about treating suppliers as friends. They all get Christmas cards and I go out to Christmas lunch with a few. I know their families and what is going on in their lives. This is because I am interested, these are my partners.

So let’s go back to where I started. Evaluate what you are. Then if you are selling your business decide how to measure the culture in the possible buyer. Here are a few of the ways I have used (in no particular order):

Mystery shop telephone responses
How quickly are emails dealt with and is there a holding answer if not the final one?
Do they under promise and over deliver?
Ask to see the system for dealing with complaints. What does it tell you about attitudes?
Look at the company handbook. Where is the focus?
Is the language used in letters, emails, contracts inclusive and friendly?
What do they call people and what does it imply e.g. employees, associates, colleagues, customer service teams
How do people know what their objectives are and how is performance measured?
What is the average response time to client, potential client, employee or an impromptu question?
Is there constant communication to tell you what is happening in any interchange?
Look at the operating manual
Is the tone of communications trusting or mistrusting?
What do business terms and conditions look like?
Are relationships three dimensional or transitional?
What are the protocols for identifying, investigating and dealing with internal mistakes?
How are the sparks of ideas or personal potential fanned?
Do they practice social responsibility?
What are their windows on the outside world?

I could go on and on. There are loads of ways of delving into and understanding what a company’s culture is rather than what it says it is. Please do not be afraid to ask, to probe, to assess. Please do not ignore anything that makes you feel uncomfortable. Examine it even more thoroughly. Good synergy will make the marriage successful.

If you are not thinking about selling your business an audit of your culture can be very useful.

It may well be that you cannot do this on your own. It can be really hard to stand back and assess these things. Then let me help you. Please talk to me. We can talk about your business, where you are with it, what you want from it and your life. I love speaking with people, off the meter, to help them explore possibilities and whether/how to take them forward. I hope you will be one of them.

In the meantime, you might enjoy New Amsterdam. Let me know.