A recent M&A engagement in the global insurance sector underscored the pivotal role of company culture in organizational success. Culture is not an abstract concept, it’s the collective behavior, values, and norms that determine how work actually gets done. And while every employee contributes to it, culture is, above all, a leadership legacy.
Leaders set the tone through every decision and behavior. When they “walk the talk,” embodying the company’s values in how they act and communicate, employees mirror that example. When they don’t, misalignment sets in quickly. If leadership prioritizes short-term performance at the expense of people or principles, engagement falters. But when leaders show integrity and consistency, culture becomes a multiplier, reinforcing trust, clarity, and performance across teams.
Nowhere is this more evident than during mergers and acquisitions. Cultural alignment or the lack of it can determine whether deal value is ultimately realized. Misaligned ways of working create friction; roles blur, key people leave, and performance dips. But when leadership identifies cultural differences early and sets clear priorities for the new organization, integration accelerates.
In the insurance industry, where success depends on trust, relationships, and long-term consistency, culture isn’t a “soft” topic. It’s a strategic one. Leaders who treat culture with the same discipline as financials or technology integration tend to outperform, not because they manage people better, but because they shape alignment faster. Culture, in this sense, becomes the invisible infrastructure of post-merger value creation.
Another surprising discovery from this engagement was how a relatively young firm had outsourced many of its non-core functions from IT to administrative support. At first, it seemed unusual for a company still finding its footing. But upon reflection, it was a smart and deliberate choice: a way to stay lean, focused, and agile.
Outsourcing non-core functions allows leadership to concentrate on what truly differentiates the business, growth and strategy. In this case, the company’s advantage lay in underwriting and marketing expertise and client service not IT development, finance functions and other support areas. By contracting out those activities, they freed internal teams to focus on refining products, enhancing customer experience, and be nimble!
Typical outsourced functions in insurance and financial services include:
Administrative support and data processing (policy data entry, records management)
Customer service operations (call centers, inquiries, and claims assistance)
Finance and HR back-office (payroll, accounts payable/receivable, bookkeeping)
Information technology support (helpdesk, infrastructure, and non-core software management)
When managed thoughtfully, outsourcing can complement a company’s cultural strategy. It allows leadership to direct internal attention toward innovation, strategic growth, and relationship-building — the very areas where culture, judgment, and trust matter most.
The intersection of culture and strategic focus reveals a subtle but powerful lesson. Strong leadership builds culture; disciplined focus sustains it. When these forces align, organizations unlock clarity, people understand not only what to do, but why it matters.
For leaders in insurance and beyond, the takeaway is clear: treat culture as a core asset and operational focus as a discipline. Review where your people spend their energy. Ask whether your leadership behaviors reflect the values you want reinforced. And consider which activities could be delegated, outsourced, or simplified to sharpen the company’s focus on what truly drives value.
In a landscape defined by change and consolidation, those who get this balance right — nurturing culture while staying strategically lean — will be the ones to grow stronger through disruption. The next move, as always, belongs to leadership.
About Imagine Capital Group
Imagine Capital Group advises private equity firms, portfolio companies, and financial institutions on strategic execution, value creation, and transformation. We support operating partners, CIOs, and change leaders in optimizing executive structures and driving measurable outcomes.
To discuss M&A, organizational models, leadership structures, or transformation governance, contact us directly.
Tom C. Schapira
Founder and CEO
Imagine Capital Group
E: tom@imaginecapitalgroup.com
Website http://www.imaginecapitalgroup.com
