Interactive diagnostic
M&A cultural due diligence
Culture Compatibility Index
Score how Company A and Company B actually operate across strategy, leadership, people systems, and culture. See where you align, where you diverge, and what belongs on the integration roadmap.
About this resource
What's this?
A dual-company cultural due diligence diagnostic for M&A. Twenty-seven sections and sixty-five continuum questions help chief people officers and integration leads compare operating styles with eyes wide open.
Ratings are not good or bad. A 1 and a 5 simply mark opposite ends of a continuum. Compatibility risk comes from how far apart the two companies sit on each question.
Who it's for
CPOs, People leaders, and integration leads running cultural due diligence for acquisitions or mergers.
When to use
- During M&A diligence when culture is one of the assessment workstreams.
- Before building a post-deal culture integration roadmap.
- When two leadership teams need a shared language for operating-style gaps.
How to use
- 1Name Company A and Company B.
- 2Score each continuum question for Company A, then switch and score Company B (or sit together and fill both).
- 3Review compatibility by section: perfect through major misalignment.
- 4Prioritise high-risk gaps into the integration roadmap, and download a PDF for leadership.
Scoring
Each of the 65 questions uses a 1–5 continuum (not a hierarchy of good/bad). Compatibility risk is the gap between Company A and Company B: 0 perfect, 1 minor, 2 moderate, 3 significant, 4 major.
Two companies
Set up the comparison
Name both organisations, then score one at a time. Switch tabs when the other stakeholder is ready (or fill both yourself).
Currently scoring
Score continuum for Company A
1 and 5 are opposite ends of a spectrum, not better or worse. Hover a number to see what that pole means for this question.
Culture Compatibility Index
Scoring Company A · 0/65
Work Prioritization
How are priorities managed when projects overlap: strategic initiatives or urgent issues?
1: Priority is often given to urgent issues. · 5: Strategic initiatives consistently take precedence.
Time Allocation for Strategic Work
How much time do individual contributors spend on strategic vs. tactical tasks?
1: Less than 10% of time is spent on strategic work. · 5: Over 50% of time is spent on strategic tasks.
Founder Decision-Making Involvement
What is the founder's involvement in strategic and operational decision-making?
1: Founder is involved in nearly all strategic and operational decisions, including day-to-day matters. · 5: Founder is primarily focused on vision-setting and delegates both strategic and operational decisions to leadership teams.
Decision-making Speed
How quickly are decisions made across the organization?
1: Decisions often take weeks or require multiple layers of approval. · 5: Decisions are made quickly, with a high level of empowerment and minimal approval layers.
Layers of Approval for Decisions
How many layers or teams are involved in making decisions?
1: Decisions require approval from multiple layers (5+ levels or teams). · 5: Decisions are often made within teams with minimal external approval required.
Leadership Style
How would you describe the leadership style in the company?
1: Primarily directive leadership style. · 5: Fully participatory and empowering.
Management Oversight
How often do managers review day-to-day work?
1: Daily review of tasks by management. · 5: Hands-off approach, reviews happen when necessary.
People management philosophy
What kind of people management capability do you have in place?
1: People managers are primarily ICs, handling management tasks like 1:1s and holiday approvals as secondary “side-of-desk” responsibilities. · 5: People managers are fully focused on leadership and team development, with minimal IC responsibilities.
People Management Span Of Control
What is the median span of control?
1: Managers typically oversee more than 10 direct reports. · 5: Managers oversee fewer than 3 direct reports.
Budgeting for Projects
How are project budgets allocated and controlled?
1: Budgeting is centralised with little team autonomy. · 5: Teams fully control project budgets.
Risk Appetite
What is the approach to financial risk in decision-making?
1: Risk-averse approach to financial decisions. · 5: Risk-taking and experimentation are frequent.
Campaign Execution
How are marketing campaigns executed and managed?
1: Campaigns are centrally controlled with long approval processes. · 5: Teams execute campaigns independently and iteratively.
Sales Led vs Product Led
Is the company's go-to-market strategy more sales-led or product-led?
1: Fully sales-led, with minimal product-led growth. · 5: Fully product-led, with minimal reliance on sales teams.
Sales Approach
How would you describe your company's sales approach (e.g., outbound, inbound, hybrid)?
1: Primarily outbound, with little focus on inbound efforts. · 5: Predominantly inbound, with minimal outbound reliance.
Product-Market Fit
How mature is your product-market fit?
1: Product-market fit is still being tested. · 5: Product-market fit is well-established and scalable.
Customer Segmentation
How clearly are your target customer segments defined?
1: Target customers are loosely defined, with significant overlap across segments. · 5: Customer segments are well-defined, specific, and consistently applied.
Sales Enablement
How effective is your sales enablement program (training, tools, resources)?
1: Little or no formal sales enablement program in place. · 5: Comprehensive, highly effective sales enablement program supporting all sales roles.
Pricing Strategy
How developed and aligned is your pricing strategy with your GTM approach?
1: Pricing strategy is inconsistent and needs development. · 5: Pricing strategy is highly optimized, aligned with GTM, and flexible based on customer needs.
Sales<>Marketing Alignment
How well-aligned are your marketing and sales teams on GTM efforts?
1: Marketing and sales operate in silos, with little alignment. · 5: Marketing and sales are fully aligned, with seamless collaboration on GTM initiatives.
Lead Generation
How effective is your lead generation process?
1: Lead generation is inconsistent and largely reliant on ad hoc efforts. · 5: Lead generation is highly effective, with a systematic and scalable approach.
Channel Strategy Maturity
How developed is your channel strategy (e.g., partnerships, third-party sales)?
1: No formal channel strategy in place. · 5: Fully developed, scalable channel strategy with high engagement and revenue contribution.
Market Positioning
How clear and differentiated is your market positioning relative to competitors?
1: Market positioning is unclear and not well-differentiated. · 5: Strong, unique market positioning with clear competitive differentiation.
Customer Retention Strategy
How effective is your strategy for retaining customers and preventing churn?
1: No formal retention strategy, and customer churn is high. · 5: Customer retention strategy is highly effective, with strong proactive measures to reduce churn.
GTM Agility
How adaptable is your GTM strategy to changes in market conditions or customer needs?
1: GTM strategy is rigid and slow to adapt to changes. · 5: Highly adaptable GTM strategy, quickly responds to market changes and customer needs.
Brand Consistency
How consistent are the values and messaging across different teams and departments?
1: Significant variation in brand messaging across teams. · 5: Fully consistent messaging and values alignment.
Product Release Cadence
How frequently are new product features or updates released?
1: Product releases occur quarterly or less frequently. · 5: Continuous deployment of product updates and features.
Issue Response Time
How quickly are operational issues or bugs resolved?
1: Resolution takes over 72 hours. · 5: Immediate response, typically resolved in a few hours.
Accountability and Ownership
How is accountability for outcomes distributed in the company?
1: Accountability is typically on individuals. · 5: Teams are fully accountable for outcomes.
Reinforcing and outlawing behaviours/core values
How are behaviours reinforced?
1: Little emphasis is placed on reinforcing positive behaviours or addressing behaviours that conflict with values. Behaviour management is ad hoc and reactive. · 5: Core values are deeply embedded. Positive behaviours are frequently celebrated, and behaviours conflicting with values are quickly addressed with clear consequences.
Encouraging Cognitive Diversity
How does the company value and encourage diversity in thought, perspectives, and problem-solving approaches?
1: Little emphasis on diversity of thought. · 5: Diversity of thought is central to company culture and operations.
Speed of Hiring
How quickly are new hires made when there is a staffing need?
1: Hiring process takes over 3 months. · 5: Hiring is completed within 30 days.
Firing for Cultural Fit
How often are employees fired due to a misalignment with the company's values or culture?
1: Rarely, employees are only fired for performance reasons. This could indicate strong cultural alignment or tolerance for high performers who don't fit culturally ("brilliant jerks"). · 5: Cultural fit is central to termination decisions. Employees who don't align with values are consistently let go, regardless of performance.
Change Implementation
How quickly are new tools or processes adopted across the organization?
1: New changes take over 6 months to implement. · 5: New processes or tools are adopted within a month.
Goal Clarity
How clearly are individual, team, and company-wide goals defined and communicated?
1: Goals are broad and unclear. · 5: Goals are specific, measurable, and clearly communicated at every level.
Goal Communication Frequency
How frequently are goals communicated or reinforced across the company?
1: Goals are communicated quarterly or less. · 5: Goals are communicated weekly or more frequently.
Conflict Resolution Process
How are conflicts typically resolved within the company?
1: Conflicts are escalated and take time to resolve. · 5: Conflicts are resolved swiftly within teams, often without formal escalation.
Sync vs. Async Balance
What is the balance between synchronous (meetings) and asynchronous (Slack, email) communication in daily work?
1: Communication is primarily synchronous. · 5: Communication is largely asynchronous, with minimal meetings.
Leadership Communication Style
How do leaders communicate across the company (e.g., tone, frequency, approach)?
1: Leadership communication is rare, top-down, and formal. · 5: Leadership communicates frequently, transparently, and in an engaging, informal style.
Leadership Transparency
How transparent is leadership communication?
1: Leadership communication is often opaque, with little information shared. · 5: Leadership is highly transparent, sharing all relevant information openly with employees.
Communication Cascades
How is information cascaded down through the organization?
1: Communication is highly structured and cascades slowly through multiple layers. · 5: Information flows freely across the organization, with minimal layers and direct leadership engagement.
Inter-Team Communication Style
How do teams communicate with each other?
1: Teams operate in silos, with minimal communication across functions. · 5: Teams communicate seamlessly, with open, continuous collaboration across all functions.
Response Expectations
How quickly are responses expected in tools like Slack or email?
1: Immediate response (within an hour). · 5: More than 24 hours for thoughtful, async responses is acceptable.
Feedback Mechanisms
What mechanisms are in place for feedback (peer reviews, one-on-ones, 360-degree feedback)?
1: Few or no formal feedback processes. Feedback is informal, and mechanisms like 1:1s, reviews, or town halls are rare. · 5: Comprehensive feedback system: frequent 1:1s, peer feedback, town halls, semi-annual or more frequent reviews, with additional tools like surveys.
Feedback Frequency
How often is individual feedback exchanged (formal reviews, peer feedback, 1:1 meetings)?
1: Formal feedback is rare, mostly annual reviews. · 5: Feedback is continuous and part of everyday interactions.
Knowledge Documentation
How well-documented are processes, tools, and key decisions?
1: Little to no documentation. · 5: Comprehensive documentation that is well-maintained and accessible.
Knowledge Sharing Frequency
How frequently is knowledge shared between teams and departments?
1: Knowledge is shared reactively, as needed. · 5: Knowledge sharing is frequent and deeply embedded in the culture.
Cross-Functional Collaboration
How often do cross-functional teams work together?
1: Siloed, minimal collaboration across functions. · 5: Cross-functional teams are highly integrated.
Job Architecture
How are roles, levels, and reporting structures defined and aligned?
1: Job roles, levels, and reporting structures are loosely defined, with significant overlaps or gaps in responsibilities and unclear lines of accountability. · 5: Job architecture is fully standardised, with clear roles, levels, and reporting lines that are consistently applied and aligned across the entire organisation, ensuring minimal role overlap or ambiguity.
Career Framework
How clearly are career paths and progression opportunities defined?
1: No formal career frameworks in place; career progression is informal and unclear. · 5: Comprehensive career frameworks are in place and actively used, with transparent progression paths and development plans for all roles.
Performance Incentives
How are performance outcomes rewarded (bonuses, equity, recognition)?
1: Rewards and incentives are rarely used. · 5: Consistent, structured incentive systems for rewarding performance.
Promotions and progression
How are promotions and progression decisions made?
1: Promotions are ad hoc, with no formal process. · 5: Promotions follow a structured, transparent process tied to both performance and career progression goals.
Compensation Philosophy
What is the company's compensation philosophy?
1: Compensation is below the market average, with little focus on competitive pay. · 5: Compensation philosophy is highly competitive, with salaries at or above the 90th percentile and a focus on equity and long-term incentives.
Pay Rise
How are pay raises determined and implemented?
1: Pay raises are rare and inconsistent, with no formal structure. · 5: Pay raises are systematic, regularly scheduled, and based on both performance and market benchmarks.
Success Celebration Frequency
How often are successes (small or large) celebrated?
1: Rarely celebrated. · 5: Successes are consistently celebrated, both large and small wins.
Risk-Taking and Experimentation
How open is the company to experimentation and taking risks in product development or new initiatives?
1: Limited experimentation and risk-taking. · 5: High level of experimentation, with significant risk-taking encouraged.
Tool Compatibility
How compatible are the tools and platforms used across both companies?
1: Tools and systems are largely incompatible. · 5: Tools and systems are fully aligned across companies.
Change Acceptance
How ready are employees for organizational changes (new tools, processes)?
1: Resistance to change is common. · 5: Employees quickly and actively adopt new tools or processes.
Compliance Integration
How quickly can legal and compliance requirements (e.g., GDPR, security) be integrated into day-to-day workflows?
1: Compliance integration (e.g., GDPR, security standards) is slow and fragmented, with significant gaps. · 5: Compliance is fully embedded into daily workflows, with seamless adherence to all regulations.
Customer Communication Cadence
How frequently do teams interact with customers?
1: Rare or minimal customer interaction. · 5: Customer interaction is embedded in daily workflows.
Crisis Response Process
How are operational or team crises handled on a day-to-day basis?
1: Crisis response is slow and reactive. · 5: Crises are resolved swiftly with preemptive action.
Cross-Team Collaboration
How integrated are cross-functional teams and cross-company collaboration post-merger?
1: Collaboration is minimal and siloed. · 5: Seamless collaboration between companies and teams.
Willingness to Adapt
How open is the company to adapting to new cultural norms or operational changes?
1: Resistance to cultural change is common. · 5: Highly adaptable, with active efforts to integrate new cultures and processes.
Vision Alignment
How aligned are leadership teams on long-term goals and strategic vision post-merger?
1: Leadership has significant differences in strategic vision. · 5: Fully aligned on long-term goals and vision.
Process Control and Delegation
How are processes controlled and delegated?
1: Processes are rigid and centrally controlled, with little delegation. · 5: Processes are fully decentralised, with teams empowered to control and adapt them.
Removing Redundant Processes
How quickly are broken or redundant processes fixed or removed?
1: Broken or redundant processes are rarely addressed and take months to fix. · 5: Broken or redundant processes are quickly identified and fixed within hours or days.
Continuum scale · switch company above to score the other side 12345 | |||||
|---|---|---|---|---|---|
| Question | 1 | 2 | 3 | 4 | 5 |
Business Strategy and Planning0/2 | |||||
Work Prioritization How are priorities managed when projects overlap: strategic initiatives or urgent issues? | |||||
Time Allocation for Strategic Work How much time do individual contributors spend on strategic vs. tactical tasks? | |||||
Leadership and Management0/7 | |||||
Founder Decision-Making Involvement What is the founder's involvement in strategic and operational decision-making? | |||||
Decision-making Speed How quickly are decisions made across the organization? | |||||
Layers of Approval for Decisions How many layers or teams are involved in making decisions? | |||||
Leadership Style How would you describe the leadership style in the company? | |||||
Management Oversight How often do managers review day-to-day work? | |||||
People management philosophy What kind of people management capability do you have in place? | |||||
People Management Span Of Control What is the median span of control? | |||||
Financials0/2 | |||||
Budgeting for Projects How are project budgets allocated and controlled? | |||||
Risk Appetite What is the approach to financial risk in decision-making? | |||||
Marketing and Growth0/14 | |||||
Campaign Execution How are marketing campaigns executed and managed? | |||||
Sales Led vs Product Led Is the company's go-to-market strategy more sales-led or product-led? | |||||
Sales Approach How would you describe your company's sales approach (e.g., outbound, inbound, hybrid)? | |||||
Product-Market Fit How mature is your product-market fit? | |||||
Customer Segmentation How clearly are your target customer segments defined? | |||||
Sales Enablement How effective is your sales enablement program (training, tools, resources)? | |||||
Pricing Strategy How developed and aligned is your pricing strategy with your GTM approach? | |||||
Sales<>Marketing Alignment How well-aligned are your marketing and sales teams on GTM efforts? | |||||
Lead Generation How effective is your lead generation process? | |||||
Channel Strategy Maturity How developed is your channel strategy (e.g., partnerships, third-party sales)? | |||||
Market Positioning How clear and differentiated is your market positioning relative to competitors? | |||||
Customer Retention Strategy How effective is your strategy for retaining customers and preventing churn? | |||||
GTM Agility How adaptable is your GTM strategy to changes in market conditions or customer needs? | |||||
Brand Consistency How consistent are the values and messaging across different teams and departments? | |||||
Operations and Product0/2 | |||||
Product Release Cadence How frequently are new product features or updates released? | |||||
Issue Response Time How quickly are operational issues or bugs resolved? | |||||
Behaviors0/2 | |||||
Accountability and Ownership How is accountability for outcomes distributed in the company? | |||||
Reinforcing and outlawing behaviours/core values How are behaviours reinforced? | |||||
Diversity of Thought0/1 | |||||
Encouraging Cognitive Diversity How does the company value and encourage diversity in thought, perspectives, and problem-solving approaches? | |||||
Hiring, Firing, and Change Management0/3 | |||||
Speed of Hiring How quickly are new hires made when there is a staffing need? | |||||
Firing for Cultural Fit How often are employees fired due to a misalignment with the company's values or culture? | |||||
Change Implementation How quickly are new tools or processes adopted across the organization? | |||||
Goal Setting0/2 | |||||
Goal Clarity How clearly are individual, team, and company-wide goals defined and communicated? | |||||
Goal Communication Frequency How frequently are goals communicated or reinforced across the company? | |||||
Conflict Management0/1 | |||||
Conflict Resolution Process How are conflicts typically resolved within the company? | |||||
Communication0/6 | |||||
Sync vs. Async Balance What is the balance between synchronous (meetings) and asynchronous (Slack, email) communication in daily work? | |||||
Leadership Communication Style How do leaders communicate across the company (e.g., tone, frequency, approach)? | |||||
Leadership Transparency How transparent is leadership communication? | |||||
Communication Cascades How is information cascaded down through the organization? | |||||
Inter-Team Communication Style How do teams communicate with each other? | |||||
Response Expectations How quickly are responses expected in tools like Slack or email? | |||||
Feedback0/2 | |||||
Feedback Mechanisms What mechanisms are in place for feedback (peer reviews, one-on-ones, 360-degree feedback)? | |||||
Feedback Frequency How often is individual feedback exchanged (formal reviews, peer feedback, 1:1 meetings)? | |||||
Knowledge Management0/2 | |||||
Knowledge Documentation How well-documented are processes, tools, and key decisions? | |||||
Knowledge Sharing Frequency How frequently is knowledge shared between teams and departments? | |||||
Organizational Design / Team Structure0/2 | |||||
Cross-Functional Collaboration How often do cross-functional teams work together? | |||||
Job Architecture How are roles, levels, and reporting structures defined and aligned? | |||||
Career Development0/1 | |||||
Career Framework How clearly are career paths and progression opportunities defined? | |||||
Compensation and Performance0/4 | |||||
Performance Incentives How are performance outcomes rewarded (bonuses, equity, recognition)? | |||||
Promotions and progression How are promotions and progression decisions made? | |||||
Compensation Philosophy What is the company's compensation philosophy? | |||||
Pay Rise How are pay raises determined and implemented? | |||||
Celebrating Success0/1 | |||||
Success Celebration Frequency How often are successes (small or large) celebrated? | |||||
Innovation0/1 | |||||
Risk-Taking and Experimentation How open is the company to experimentation and taking risks in product development or new initiatives? | |||||
Tooling0/1 | |||||
Tool Compatibility How compatible are the tools and platforms used across both companies? | |||||
Employee Sentiment & Change Readiness0/1 | |||||
Change Acceptance How ready are employees for organizational changes (new tools, processes)? | |||||
Legal & Compliance Alignment0/1 | |||||
Compliance Integration How quickly can legal and compliance requirements (e.g., GDPR, security) be integrated into day-to-day workflows? | |||||
Customer & External Perception0/1 | |||||
Customer Communication Cadence How frequently do teams interact with customers? | |||||
Crisis Management & Resilience0/1 | |||||
Crisis Response Process How are operational or team crises handled on a day-to-day basis? | |||||
Cross-Company Collaboration0/1 | |||||
Cross-Team Collaboration How integrated are cross-functional teams and cross-company collaboration post-merger? | |||||
Cultural Flexibility & Adaptability0/1 | |||||
Willingness to Adapt How open is the company to adapting to new cultural norms or operational changes? | |||||
Leadership Alignment on Future Vision0/1 | |||||
Vision Alignment How aligned are leadership teams on long-term goals and strategic vision post-merger? | |||||
Process Controls0/2 | |||||
Process Control and Delegation How are processes controlled and delegated? | |||||
Removing Redundant Processes How quickly are broken or redundant processes fixed or removed? | |||||
Compatibility results
Builds once both companies have scored the same question. Section risk is the average gap across paired items.
Overall compatibility
—
Score the same questions for both companies to unlock results.
Pair questions with a gap of 2+ to unlock high-priority integration topics.
More open resources
Other free templates and diagnostics from Open Org.
Want help turning gaps into an integration roadmap?
Use Workspace AIUse Workspace AI to draft workshop agendas, owners, and 90-day experiments for your highest-risk culture gaps.
Culture Compatibility Index by Open Org. Free to use and adapt for your organisation. Culture is one M&A workstream; pair this with technology and process diagnostics.