Oil and Wasser
England's Royal Biscuit Company and Gernnany's Edeling GmbH are in the final stages of a merger. Will a global culture clash cause the deal to crumble?
Oil and Wasser by Byron Reimus
M'
,iCHAEL BRIGHTON felt as if he'd been slapped. His back stiffened into the cold leather chair as Sir John Callaghan, the temperamental chairman of the London-based Royal Biscuit Company, angrily brandished the memo. "There is no evidence the two of you collaborated on this leadership development plan!" he hollered, glaring at Brighton while his German counterpart, Dieter Wallach, stared stonefaced at the conference table. "This is a disgrace," Callaghan said. "You've had over three months to put together a coherent program, not a mishmash of features culled from warmedover HR presentations!" He slammed the memo on the table. The conference room's glass doors rattled slightly. Anthony Miles, Royal Biscuit's head of marketing, overheard the commotion as he passed in the hallway. He raised his eyebrows and quickened his step.
Callaghan, a self-made billionaire who did not suffer fools gladly, was famous for his displays of temper. But Brighton had never been on the receiving end of his boss's fury, despite serving as Callaghan's head of HR for overfiveyears. Brighton was inclined to place the blame on his German counterpart, from onetime competitor and now merger partner Edeling GmbH, for the lack of progress. Still, he kept his mouth shut. "If Dieter weren't such a stickler for process, we would have been a lot further along," he thought grimly. To some outside observers, Callaghan's tantrum would have seemed like the inevitable result of an overly ambitious marriage of two proud firms. On January 30, accompanied by Edeling CEO Heinz Burkhardt, Callaghan had stepped proudly before packed conference rooms in London and Frankfurt to announce the merger. On one side of the deal was Royal Biscuit, an
HBR's cases, which are fictional, present common managerial dilemmas and
Oil and Wasser by Byron Reimus
M'
,iCHAEL BRIGHTON felt as if he'd been slapped. His back stiffened into the cold leather chair as Sir John Callaghan, the temperamental chairman of the London-based Royal Biscuit Company, angrily brandished the memo. "There is no evidence the two of you collaborated on this leadership development plan!" he hollered, glaring at Brighton while his German counterpart, Dieter Wallach, stared stonefaced at the conference table. "This is a disgrace," Callaghan said. "You've had over three months to put together a coherent program, not a mishmash of features culled from warmedover HR presentations!" He slammed the memo on the table. The conference room's glass doors rattled slightly. Anthony Miles, Royal Biscuit's head of marketing, overheard the commotion as he passed in the hallway. He raised his eyebrows and quickened his step.
Callaghan, a self-made billionaire who did not suffer fools gladly, was famous for his displays of temper. But Brighton had never been on the receiving end of his boss's fury, despite serving as Callaghan's head of HR for overfiveyears. Brighton was inclined to place the blame on his German counterpart, from onetime competitor and now merger partner Edeling GmbH, for the lack of progress. Still, he kept his mouth shut. "If Dieter weren't such a stickler for process, we would have been a lot further along," he thought grimly. To some outside observers, Callaghan's tantrum would have seemed like the inevitable result of an overly ambitious marriage of two proud firms. On January 30, accompanied by Edeling CEO Heinz Burkhardt, Callaghan had stepped proudly before packed conference rooms in London and Frankfurt to announce the merger. On one side of the deal was Royal Biscuit, an
HBR's cases, which are fictional, present common managerial dilemmas and