Should divisions, organisations and cultures merge?

The latest news on the street is that the British economy is finally becoming more stable; there are more jobs out there than there were this time last year, people are becoming more confident in their spending and finally the sun is starting to shine. After the major crash of 2008, it would seem, at first glance, that we are finally starting to get back on track.

But what affect has the flailing economy had on our view of how business should operate?

In difficult financial times businesses often go into panic mode and look at how they can improve business through short term gains. This typically comes in the form of cost cutting and more often than not this means making services more efficient and streamlined through cutting staff and combining services. But to what avail?

I’m a firm believer that in good times even the most shrewd businesses can over hire and over spend and thus when times are hard there is always some surplus and easy ways to cut costs, but at what point is cost cutting too much? When do companies start to suffer through ‘over-efficiency’?

One of the first things that they teach you when you learn about business is the importance of creating a USP – Unique Selling Point – a business needs to offer something original to get noticed in the market. Original ideas come from original people. When we combine services, divisions, departments and organisations, the originality of cultures and brands can be lost. In many mergers and acquisitions, this behaviour is even encouraged. The reason for this? It’s expensive to grow different businesses under one roof. Managing a business with various cultures and siloed departments is no easy task.  It involves creating many different business and reward models, duplication of effort and information, and can create divides between people. On the flip side it can foster creativity, enable new fresh ideas and it can give organisations that all-important USP.  

So, should we really concentrate on combining services, amalgamating departments, squashing differences so that we can be more efficient? Or, despite the expense and management challenges, shouldn’t we be celebrating our differences and individuality to achieve longer term success...?