1、cultural due diligence studywelcomeagenda:presentation of findingsq&a sessioncultural due diligence studypresentation of findingscultural due diligence studydata collected from around the world in both companies:127 individual executive interviews focus groups spanning 1,500 managers and individual

2、contributors in 22 countriescongruence modeloutputinputenvironmentresourceshistorystrategysystemunitindividualworkpeopleformalorganizationinformalorganization3cultural due diligence study1. comparing and contrasting pre-merge hp and compaq2. definitionssimilarities - things that the people in each c

3、ompany perceived about themselves that matched the other companydifferences - things that the people in each company perceived about themselves that were at odds with the other companyunique commentary - things that people in each company expressed very often which those in the other company talked

4、much less about3. the findings reflect perceptionscongruence modeloutputinputenvironmentresourceshistorystrategysystemunitindividualworkpeopleformalorganizationinformalorganization5inputhp on hpsimilaritiesproud about HP legacyindustry consolidatingdisadvantaged in supply chain and overhead costsgoo

5、d productsunique commentarypride in success linked to innovationtechnical/engineering heritagegood reputation with customerspower historically with the business and the back endcompaq on compaqsimilaritiesstrong brand, products and servicesindustry consolidatingdisadvantaged in supply chain and over

6、head costsgood productsunique commentaryhistorically fast, nimble, and able to executetraditionally short-term focusedfast growth through new business modelredefined computing landscape6congruence modeloutputinputenvironmentresourceshistorystrategysystemunitindividualworkpeopleformalorganizationinfo

7、rmalorganization7strategyhp on hpsimilaritiestop-down strategy; mid-management not involvedneed for planning and execution processdifferences strategy is long-term orientedunique commentarystrategy increasingly unclear as you go down the organizationstrategy has to be translated into something concr

8、etecompaq on compaqsimilaritiesstrategy comes through a top-down processlittle/no strategic processdifferencessusceptible to frequent changes in directioncustomer focused with a short-term orientation toward the market; interferes with investing/building for the futureunique commentarytendency to be

9、 influenced more by major customer accounts than technological advancements8congruence modeloutputinputenvironmentresourceshistorystrategysystemunitindividualworkpeopleformalorganizationinformalorganization9workhp on hpdifferencesrespect for processstrong planning and financial processeswork process

10、 is organizationally based, vertically strong, works wellunique commentaryautonomy in managing ones own work is the norm; accountability at individual levelupper management does not seem to be held accountable in the same way as otherspoor cross-functional accountabilities and ownership of workcompa

11、q on compaqdifferencesprocess seen as bureaucracy, aversion to processeslack of clear, disciplined processeswork process: swat teamsunique commentarytechnology is greatinformation systems are not integratedmultitasking is a normwork-life balance is not achieved10congruence modeloutputinputenvironmen

12、tresourceshistorystrategysystemunitindividualworkpeopleformalorganizationinformalorganization11peoplehp on hpsimilaritieslow credibility in leadershipdifferencesleadership focused on relationships (how things get done)unique commentarymulticultural, diverse, dedicated workforceteam-orientedlosing th

13、e “family feelinglower levels of management are informal; top management is more formal and removedrecent changes led to low moralecompaq on compaqsimilaritieslow credibility in leadershipdifferencesleadership achievement-oriented, rugged individualists (what gets done)unique commentarypeople are br

14、ight, committed, and work hard, long hoursgood interpersonal relationshipslearning happens on the jobinsufficient investment in training and developmentpeople do not feel empowered, except in field12congruence modeloutputinputenvironmentresourceshistorystrategysystemunitindividualworkpeopleformalorg

15、anizationinformalorganization13formal organizationhp on hpsimilaritiesgoals change too often; they are unclear, execution not enforcedno consequences for not meeting objectives; performance metrics unclear or absent, differ across “silosfront-end/back-end structure exacerbated problems with accounta

16、bilityhp is horizontally challengedmore power moving to the front-end organizationhp is becoming more centralizeddifferencesno common process for decision making; very top-down, slow, long decision cycle times; but thoughtful and high involvementgeneral perception that decisions are rarely made, but

17、 tend to stick once madecompaq on compaqsimilaritiesgoals change frequently and not synchronized between front-end and back-end organizationspeople are not held accountable; structure and measurement systems cloud accountabilitystrong matrix management leading to fuzzy lines of accountabilitiesperfo

18、rmance management inconsistent, generally poor planning and controlcross-organizational collaboration difficultcountry managers are kingsmany things are very centralizeddifferencesdecisions made quicklya lot of “checking in to make a decision, iterative decisions, top-down14congruence modeloutputinp

19、utenvironmentresourceshistorystrategysystemunitindividualworkpeopleformalorganizationinformalorganization15informal organizationhp on hp as strengthsimilaritiesstrong sense of ethicsstrong customer-focus (make great products)team culture, have to be part of the groupgetting results is rewarded, some

20、times effort without a result gets rewardedhaving big new ideas is valuedtreat people with dignitymultiple subculturesdifferencesconflict avoidance and over-compromise are normaltitles not referenced, egalitarianunique commentary“silo mentalityfailure deserves a second chancediversity and people are

21、 valuedcompaq on compaqsimilaritiesethical behavior is enforcedstrong customer orientation (make what they want)teamwork is valuedhighly results/bottom-line focused, sometimes effort without a results gets rewardedopenness to good/new ideasdont publicly embarrass peoplemultiple subculturesdifference

22、sconflict addressed directly/openly, aggressive, brashtitles are referenced, abundant, hierarchicalunique commentaryinitiative, flexibility, “go for it attitude are valuedrelaxed/flex work environment; long working hourshere and now orientation16concerns about the other company17cultural due diligen

23、ce studyadvice to carly & michael from interviews and focus groups:be inclusivedefine your work and rolesdefine/communicate what you want the new company to bebe boldclarify roles and organization structuretake action quicklycontinue to communicate a lot; be honest, but be sensitive in what you sayc

24、ultural due diligence studyregion-specific findingsComparison of hp with Compaq -North AmericaCultural gap differences are statistically significant.Compaqs AverageHPs Average20Comparison of hp with Compaq -Latin AmericaCultural gap differences are statistically significant.Compaqs AverageHPs Averag

25、e21Comparison of hp with Compaq -EMEACultural gap differences are statistically significant.Compaqs AverageHPs Average22Comparison of hp with Compaq -Asia PacificCultural gap differences are statistically significant.Compaqs AverageHPs Average23Comparison of hp with Compaq -Enterprise wideCultural g

26、ap differences are statistically significant.Compaqs AverageHPs Average24cultural due diligence studyin summary . . .we also heard people say that:both company cultures were in transition before the mergerthe direction that each culture needed to take was, actually, to adopt the strengths of the oth

27、erso, if you integrate well, building on each others strengths, the potential for success is greatcultural due diligence studycultural cornerstonesnew hp cultural cornerstones (release 1.0 )valuespassion for customerstrust & respectachievement & contributionuncompromising integrityteamwork meaningfu

28、l innovationspeed & agilityprofitglobal citizenshipleadershipcapabilityemployeecommitmentcorporateobjectivescustomerloyaltygrowthmarketleadershipmetrics & rewardsstructure & processesstrategies behaviorspolicies &practices27lessons learnedfirst, though there were important differences between the pr

29、e-merge hp and compaq organizations, there were a great many similarities; and, there were a great many positive characteristics that both companies shared (for example, the emphasis on teamwork)to minimize unproductive conflict moving forward, there are several lessons or implications from this study for how we work together:focus and build upon our common strengthscome to agreement about the appr