would join the heap of those done in by cultural differences.
WCS' culture was characterized by a free-wheeling, entrepreneurial spirit that was also quite
secretive. WCS employees also were accustomed to the high life. Their corporate
headquarters in the CBD area of Windhoek, could be described as lavish, and employees
throughout the company enjoyed high salaries and generous perks.
KCIB in contrast, grew by thrift. It was a low-cost, no-nonsense operation. Unlike WCS, it
believed that size and smarts were more important than speed.
In short, the cultures in the two companies were very, very different.
Although these cultural differences seemed a recipe for disaster, it appears, judging from the
reactions of KCIBand WIS employees, that the merger has worked. How can this be?
KCIBhad the foresight to know which WCS practices to attempt to change and which to keep
in place. Especially critical was KCIB's appreciation and respect for WCS' culture. "On Day 1, I
was directed that this was not like the ones you are used to," said Camilla Kishi, who had
helped manage KCIB's acquisition.
To try to manage the cultural transition, executives of both companies began by comparing
thousands of practices covering everything from hiring to call-center operations. In many
cases, KCIBchose to keep WCS' cultural practices in place.
In other cases, KCIB did impose its will on WCS. For example, because WCS' pay rates were
well above market, many WCS managers were forced to swallow a steep pay cut. Some WCS
employees left, but most remained. In other cases, the cultures co-adapted. For example,
WCS's dress code was much more formal than KCIB's business-casual approach. In the end, a
hybrid code was adopted, where business suits were expected in the credit card division's
corporate offices and in front of clients, but business causal was the norm otherwise.
While most believe the merger has been successful, there are tensions. Some KCIBmanagers
see WCS managers as arrogant and autocratic. Some WCS managers see their KCIB
counterparts as bureaucratic.
What about those famous WCS perks? As you might have guessed, most have disappeared.
Gone, too, are most of the works of art that hung in WCS' corporate offices.
Questions
3.1 In what ways were the cultures of KCIBand WCS incompatible?
(5)
3.2 Why do you think their cultures appeared to mesh rather than clash?
(4)
6