- Decision-Making & Governance
- How decisions get made, delegated and escalated: where authority actually sits, whether decision rights are written down and honoured, and whether decisions stay made. The first dimension to collide in an integration — synergy plans stall when two approval cultures meet — and the one most directly moderated by the chosen integration type (absorption, symbiosis or preservation; Haspeslagh & Jemison 1991).
- Leadership & Power Distance
- How leaders hold and exercise authority, and how challenge travels upward: whether status attaches to roles or to individuals, whether bad news reaches the top, and whether dissent is safe. Perceived difference in top-team style is the classic predictor of acquirer value loss (Chatterjee et al. 1992), and mismatched power distance is where "merger of equals" rhetoric most visibly fails.
- Pace & Execution Norms
- The operating tempo: how fast decisions become action, whether commitments and deadlines bind, how disciplined the planning rhythm is, and how the organisation re-plans when priorities change. Pace mismatch is the most common day-to-day clash PE operating partners report between investor-side expectations and an acquired operating culture — and slipped tempo reads as missed synergy milestones.
- Communication & Transparency
- How information moves: whether important news is shared or traded, whether leaders are honest about difficult subjects, and whether people hear about change from leadership before the grapevine. The dimension under most strain in a deal — announcement-to-close is a rumour vacuum, and an entity that communicates poorly in peacetime will communicate worse under deal secrecy.
- People Practices & Retention Risk
- How the entity manages, rewards and keeps its people: whether critical people are known and deliberately retained, whether reward is seen as fair, whether attachment is to the organisation or to individuals, and whether performance is addressed honestly. Talent flight is one of Mercer (2018)'s three channels through which culture issues destroy deal value, and unplanned leadership churn is the wedge PE firms feel most sharply.
- Customer & Market Posture
- How the entity faces its market: whether there is a shared view of who the customer is and what is promised, whether commitments are honoured when commercially inconvenient, how consistent the appetite for commercial risk is, and whether customer relationships belong to the organisation or to individuals. Customer disruption is the third of Mercer (2018)'s culture-loss channels — and the one boards notice first, because it lands in the revenue line.
Results are reported against 5 maturity levels: Severe risk, High risk, Elevated risk, Moderate risk, Low risk.