Cultured Conversation # 6: Curiosity

In this edition of Cultured Conversations, we:

• Ask why the process of Due Diligence rarely extends to workplace culture.
• Warn you about some disruptive characters lurking in your organisation.
• Tease you about some great developments in applicable leadership at Amalgam Leadership
• Showcase a Zambian business leader who has transformed the way she lives and works by following the Emotional Intelligence cues from Mygrow

Due Diligence

The exciting world of mergers and acquisitions (M&A) has always been about ‘the numbers.’ People buying businesses to integrate into their own or investing to ‘scale and flip’ want proof of success. This has historically been evidenced in the Management and Audited Accounts. Hence, purchasers and their advisors must conduct financial due diligence, a comprehensive analysis of the target company's financial statements, accounting practices, tax records, and overall financial health. This helps them understand the company's historical performance, identify financial risks, and evaluate the accuracy of the target’s financial projections.

As Governance requirements increased and, with them, Director’s Liabilities, greater Legal Due Diligence became the order of the day. This involves examining the target’s legal structure, contracts, permits, litigation history, compliance with relevant laws and regulations, and attempts to forestall future legal complications.?

The development of Marketing and Branding added extra sophistication to the scope of Commercial Due Diligence, focusing on the target's market position, competitors, customer base, and brand equity and evaluating future growth potential.?

Over time, due diligence has evolved to encompass additional layers, such as Intellectual Property, IT, Operations, and Environmental impact. The current emphasis on the Environmental, Social, and Governance (ESG) framework evaluates a company's business practices and performance on various ethical issues. This evolution ensures a comprehensive understanding of the target company's operations before investors consider investing.

One of the most crucial changes in M&A strategy is the increased attention to human capital and organisational culture. In my experience with successful M&A projects, this is where the private equity team begins their investigations. They immerse themselves in the company, engaging with management and staff and digesting staff engagement studies as eagerly as market reports.

They understand that in today's knowledge-based economy, a company's actual value lies in its people and culture. Therefore, they make every effort to understand ‘the way we do things around here'.?

The modern Human Resources Due Diligence approach goes beyond identifying and retaining critical employees post-acquisition. It’s about ensuring you buy a company and not a balance sheet. Companies are social constructs; they exist because human beings agree to work in them. The struggles we faced with company cohesion during the pandemic, and now in its aftermath, show how fragile organisations have become. Add the radically different attitudes to work expressed by younger generations of employees and investors, and they are right to fret about the human dimension. If employee morale declines and discretionary effort drops, a shiny new acquisition will soon tarnish.

Prima Donnas

We all know a Prima Donna. Not in the true sense of the word, as few of us number the leading female singer in an opera company among our friends. But the term has come to mean a temperamental person with an inflated sense of their own worth. It is often connected with another term - Narcissism - which is a psychological descriptor for a selfish person who craves admiration but lacks empathy with others.

Though narcissistic personality disorder affects less than 1% of the population, just one narcissist in the workplace can damage the entire office culture. Learning to understand narcissists can help you manage your team better and coexist with narcissist leaders or employees who have a knack for pushing your buttons!

There are four recognisable types of narcissism:

Grandiose narcissists. Often extroverted, aggressive, and single-minded in pursuit of attention. Boast about their own achievements while downplaying the contribution of others. They tend to be master manipulators and come across as very charming.

Vulnerable narcissists. Have many of the same traits, but their introverted nature leads them to avoid attention. They can be self-absorbed, manipulative, and aggressive. Even the slightest criticism plays into their hypersensitivity, triggering their hostility. Vulnerable narcissists tend to blame others for their problems.

Social narcissists. Need to be liked. Their desire to be seen as the best friend and the most supportive colleague makes them very outgoing.? But their belief that they’re the most helpful person in the room can translate into an extraordinary sense of entitlement.

Malignant narcissists.? Are extreme in their aggression. They don’t mind destroying other people’s careers. They feed on it.?

I’m hoping you haven't seen any of these behaviours in yourself.? But, if you have, you can take comfort in the fact that narcissists can do good in the workplace. People who believe they’re a gift to mankind are often more driven to create life-changing products or radically change systems. The extroverted, charming nature of grandiose narcissists also puts them in a prime position to enlist support for innovation.?

Sadly, the less helpful forms of narcissism are more common in the workplace. They’re poor losers who argue over the rules and belittle the victors. They break the rules with little or no remorse because they think they’re above reproach. This might mean taking extra long lunches or lead to corruption. They take credit for the work of others. Putting their name on other people’s ideas stifles collaborative innovation. They also like to leave the drudgery to others, avoiding their responsibility for routine tasks. Have you spotted any yet?

What the Amalgam Leadership Programme is all about

At Amalgam Leadership , we share a clear purpose. We're building more leaders because sustainable businesses need them, and we're building more emotionally intelligent leaders because we all need them!

With eight years of successful work behind us, we now boast a well-connected and empathetic Alumni Group of more than 60 business leaders in four African nations, representing various sectors, from Agriculture to Fintech and Manufacturing to Utilities.

We create leaders who are marketing literate and tech-savvy. Up to speed with the fast-changing requirements of governance and the ESG agenda. Men and women who know how to lead themselves before leading the organisation.

In January 2025, the next Amalgam Class will form in Nairobi, Kenya. But, right now, you can talk to Kathy Mwai, Registrar [email protected] , to learn more about this inspirational programme and reserve places for your future leaders.

Mwaka McGeachy. Cultivating gratitude in Zambia

Mwaka McGeachy attended the Amalgam Leadership Programme 's Class of 2023 and took her Emotional Intelligence cues from Mygrow

Today, the Human Resource leader of Zambia's largest poultry business exudes optimism and cultivates gratitude among her many followers on LinkedIn.

Chris Harrison is the Managing Director of The Brand Inside. He's a Marketer and Africa expert with 30 years of experience building and delivering brands across Africa. As a Coach , he currently leads programmes to transform organisational cultures in Logistics, Microfinance, Agriculture, Fintech and Banking.

Chris partners with the Emotional Intelligence development platform Mygrow in Africa and helps to develop future business leaders through the Amalgam Leadership Programme

Cultured Conversations showcases the latest thinking in leadership, workplace behaviours and organisational culture change.