Build on your values
After identifying and communicating values, Harrison next wanted to shake everything up by going back toward the very thing that had threatened the culture of the firm: acquisitions.
“Even though acquisitions are disruptive, in our case, at that time, we thought a little disruption is a good thing,” Harrison says. “If you’re smart about it, you can use an acquisition as a change tool.”
The acquisitions would drive
growth for the firm but also help him bring on better leaders, people and ideas.
“You can buy it much faster than you can build it,” he says. “It’s just more efficient, so if you can figure out how to go through the cultural change process and learn how to effectively integrate acquired companies, then it’s a much more efficient process than trying to do it homegrown.”
He looked for companies that had similar values as Perkins+Will but that also represented what the firm aspired to be.
For example, sustainability was a core value the firm’s leadership embraced, but the people hadn’t. They found a Vancouver company that excelled in this area, so they came on board in 2004 and functioned as a rapid change agent.
But you have to make sure that any company you look to acquire will align with your culture.
“It’s an expensive way to make a mistake if you find out that you don’t agree on fundamental business practices with someone you’re trying to integrate into your own operations,” he says.
Most leaders start with the financial implications instead of the cultural ones.
“You start off on the values side and make sure it is integratable,” Harrison says. “In other words, you want to be integrated, so you talk about what their aspirations are as a team and also as individuals, and you make sure that the prospects for integration actually make sense.”
Acquisitions are a little like dating in that after you get to know each other, you only move forward if you see a high level of compatibility and a great potential future together.
“Don’t do an acquisition if you can’t tell yourself a compelling story or the people inside your company a compelling story because you can’t tell your clients a compelling story,” he says. “It all starts there, and if there’s a compelling reason — a business reason, a cultural reason or whatever — it needs to be both to combine companies. Then you can be successful. If there isn’t, it will very likely not be successful.”
If it’s a match, then you have to look at the company top to bottom and do integration planning.
“Look at every element of a company’s operations,” he says. “We figure out how those items might change and develop sort of an integration map, if you will, where we anticipate those operational issues might change at this point in time or these roles might change or these financial matters might change.”
Once you decide it’s a fit, then it goes back to the communication factor with both your company and the one being acquired.
“You tell the story of the acquisition in the context of the power that is generated of the two firms coming together and how that can directly impact their lives as individuals and as a group,” Harrison says.
Then you have to integrate quickly. Sometimes companies want to retain their names, because they believe it has recognition, and that may be true, but the longer you operate as two — by name, function, culture or any other way — the longer you hurt the combined company.
“If there’s some compelling reason to combine two firms — it’s not just that you’re trying to get bigger, but you’re trying to get better — and there’s some qualitative objective that you’re seeking out, the more you keep those two firms from being integrated, the longer it takes you to realize that benefit,” Harrison says.
And Harrison is now realizing the benefit. Since 2003, the year Harrison took over as president, Perkins+Will has acquired 11 firms and opened four new offices, all while reaching $400 million in gross revenue. But the benefit isn’t just new offices and increased revenue. The acquisitions have helped propel the cultural change that Harrison wanted by bringing in new leaders and employees who embraced the identified values. With 1,500 employees now, he’s confident in the firm’s future.
“The change is more organic now,” Harrison says. “It used to be that it was inorganic. It was an acquisitional strategy. Even though we’re still doing acquisitions, it doesn’t feel like they’re changing us as much anymore. There’s enough momentum and resonance in the company itself that the acquisition is actually not viewed as a change force anymore. Change is already sort of built into the organization and it’s part of our DNA right now, so people are more comfortable.”
How to reach: Perkins+Will Inc., (404) 873-2300 or www.perkinswill.com
