Structural Changes to the Public Sector and Cultural Incompatibility: The Consequences of Inadequate Cultural Integration

Structural changes are commonly undertaken to achieve gains, such as enhanced efficiency and performance. In this paper, we explore the cultural issues associated with a structural change in the Australian Public Service. We argue that cultural differences across merged functions were disruptive and challenging to overcome. We posit, however, that these challenges were exacerbated by the lack of systemic effort to integrate cultures, thus impeding synergy realization. Our findings are consistent with the private sector literature that warns mergers and acquisitions undertaken with too much haste and without adequate planning can lead to cultural issues when not managed appropriately.