The Linguist is a languages magazine for professional linguists, translators, interpreters, language professionals, language teachers, trainers, students and academics with articles on translation, interpreting, business, government, technology
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Vol/53 No/6 2014 DECEMBER 2014/JANUARY 2015 The Linguist 25 FEATURES conducting business, including a focus on team play, very much indicative of American cultural traits. Nomura was hierarchical, conservative and preferred moderate, constant incomes rather than momentous enormous ones, 1 all traits with their source in Japanese values and culture. Attitudes towards clients were quite different too: Lehman Brothers prioritised short-term incomes over long-term relations (another example of a cultural difference: long-term vs. short-term thinking). Nomura liked to work with long-standing, reliable clients, rather than chasing risky but potentially beneficial deals. Again, trust was a major issue. Nomura provided Lehmanites with 'shadows', who were sent to watch over them. Even the top- level executives were constantly followed. Apart from the understandable irritation, this raised suspicions that Nomura didn't trust their newly acquired assets. Micro-level problems were also abundant. Perhaps the most vivid example was the treatment of women. Soon after the acquisition, Nomura launched a series of training sessions to smooth the integration process, but this potentially good idea took a rather peculiar form. Women and men were separated. Women were instructed on how to wear their hair, what dress code they should adhere to, even how to serve tea. There were instances when female employees weren't allowed to take part in meetings because of a 'strict door policy'. The imposition of Nomura's culture on the former Lehman Brothers employees had horrendous results. Estimated losses in 2008 and first quarter of 2009 were about ¥8,700bn. After that, Nomura did start generating profits, but this was of no significance when compared to its competitors: Nomura's profits for the first quarter of 2009 were $207m – billions less than Citigroup ($4.43bn), Goldman Sachs ($3.46bn) and Morgan Stanley ($1.78bn). A combination of financial difficulties and a mass defection of Lehmanites suggests that this partnership didn't yield the anticipated dividends. A successful approach In 2008, the Indian firm TATA acquired the British brand Jaguar Land Rover (JLR). This is a story of success. One can attribute the positive outcome to an effective approach to the integration process. TATA employed opposite methods to Daimler – respecting the existing culture, rather than imposing a foreign one. At the start of the process, the Managing Director openly stated that 'change of ownership has little to do with the changing of culture'. This had several consequences on TATA's management style. Firstly, TATA, in contrast with Daimler, decided to leave the existing management structure intact. There was no attempt to impose Indian managers. All the key personnel retained their positions. Secondly, TATA didn't just leave the current managers on their own. They motivated them by constantly challenging and working with them. Help was offered only when it was needed and existing practices remained in place, but at the same time managers couldn't afford to be idle because they had goals to reach and plans to implement. Thirdly, TATA inspired trust in JLR. The fact that most of the personnel were left in their positions showed that TATA trusted JLR, and believed that it was capable of solving its problems. TATA also kept an open mind; its top-level officials often make trips to their factories and dealerships outside India, and collect feedback from local employees. These opinions are used in developing the company's strategy. Turnover rose from about £5bn in 2008-09 to nearly £14bn in 2011- 2012. Such results show the stark difference in outcomes, depending on whether companies take into account cultural differences and try to mitigate the impact of change. It can be hard to establish the extent of a culture's influence on mergers and acquisitions, but in these case studies, the impact is clear. Linguists, as translators of culture, may have a vital role in securing positive outcomes for such ventures. Having a foot in both camps helps to inform decisions and aid integration at all levels. Notes 1 Choi, S Y, 2011, 'Nomura's Transformation: Two Years' in KCMI Capital Market PERSPECTIVE Communication failures caused a sharp reduction in productivity. Share prices plummeted DOWNFALL: A doomed Daimler-Chrysler lorry (left); and the Chrysler Building in New York, rising symbolically from the mist (opposite) SAABY, 'D AIMLER CHRYSLER SEMI', 25/4/05 VIA FLICKR (CC BY-SA 2.0)