culturalduediligencestudyweeagenda:presentationoffindingsq&asessionculturalduediligencestudypresentationoffindingsculturalduediligencestudydatacollectedfromaroundtheworldinbothpanies:127individualexecutiveinterviews138focusgroupsspanning1,500managersandindividualcontributorsin22countriescongruencemodeloutputinputenvironmentresourceshistorystrategysystemunitindividualworkpeopleformalorganizationinformalorganizationculturalduediligencestudy1.paringandcontrastingpre-mergehpandpaq2.definitionssimilarities-thingsthatthepeopleineachpanyperceivedaboutthemselvesthatmatchedtheotherpanydifferences-thingsthatthepeopleineachpanyperceivedaboutthemselvesthatwereatoddswiththeotherpanyuniquementary-thingsthatpeopleineachpanyexpressedveryoftenwhichthoseintheotherpanytalkedmuchlessabout3.thefindingsreflectperceptionscongruencemodeloutputinputenvironmentresourceshistorystrategysystemunitindividualworkpeopleformalorganizationinformalorganizationinputhponhpsimilaritiesproudaboutHPlegacyindustryconsolidatingdisadvantagedinsupplychainandoverheadcostsgoodproductsuniquementaryprideinsuccesslinkedtoinnovationtechnical/engineeringheritagegoodreputationwithcustomerspowerhistoricallywiththebusinessandthebackendpaqonpaqsimilaritiesstrongbrand,productsandservicesindustryconsolidatingdisadvantagedinsupplychainandoverheadcostsgoodproductsuniquementaryhistoricallyfast,nimble,andabletoexecutetraditionallyshort-termfocusedfastgrowththroughnewbusinessmodelredefinedputinglandscapecongruencemodeloutputinputenvironmentresourceshistorystrategysystemunitindividualworkpeopleformalorganizationinformalorganizationstrategyhponhpsimilaritiestop-downstrategy;mid-managementnotinvolvedneedforplanningandexecutionprocessdifferences

strategyislong-termorienteduniquementarystrategyincreasinglyunclearasyougodowntheorganizationstrategyhastobetranslatedintosomethingconcretepaqonpaqsimilaritiesstrategyesthroughatop-downprocesslittle/nostrategicprocessdifferencessusceptibletofrequentchangesindirectioncustomerfocusedwithashort-termorientationtowardthemarket;interfereswithinvesting/buildingforthefutureuniquementarytendencytobeinfluencedmorebymajorcustomeraccountsthantechnologicaladvancementscongruencemodeloutputinputenvironmentresourceshistorystrategysystemunitindividualworkpeopleformalorganizationinformalorganizationworkhponhpdifferencesrespectforprocessstrongplanningandfinancialprocessesworkprocessisorganizationallybased,verticallystrong,workswelluniquementaryautonomyinmanagingone’sownworkisthenorm;accountabilityatindividualleveluppermanagementdoesnotseemtobeheldaccountableinthesamewayasotherspoorcross-functionalaccountabilitiesandownershipofworkpaqonpaqdifferencesprocessseenasbureaucracy,aversiontoprocesseslackofclear,disciplinedprocessesworkprocess:swatteamsuniquementarytechnologyisgreatinformationsystemsarenotintegratedmultitaskingisanormwork-lifebalanceisnotachievedcongruencemodeloutputinputenvironmentresourceshistorystrategysystemunitindividualworkpeopleformalorganizationinformalorganizationpeoplehponhpsimilaritieslowcredibilityinleadershipdifferencesleadershipfocusedonrelationships(howthingsgetdone)uniquementarymulticultural,diverse,dedicatedworkforceteam-orientedlosingthe“familyfeeling”lowerlevelsofmanagementareinformal;topmanagementismoreformalandremovedrecentchangesledtolowmoralepaqonpaqsimilaritieslowcredibilityinleadershipdifferencesleadershipachievement-oriented,ruggedindividualists(whatgetsdone)uniquementarypeoplearebright,mitted,andworkhard,longhoursgoodinterpersonalrelationshipslearninghappensonthejobinsufficientinvestmentintraininganddevelopmentpeopledonotfeelempowered,exceptinfieldcongruencemodeloutputinputenvironmentresourceshistorystrategysystemunitindividualworkpeopleformalorganizationinformalorganizationformalorganizationhponhpsimilaritiesgoalschangetoooften;theyareunclear,executionnotenforcednoconsequencesfornotmeetingobjectives;performancemetricsunclearorabsent,differacross“silos”front-end/back-endstructureexacerbatedproblemswithaccountabilityhpishorizontallychallengedmorepowermovingtothefront-endorganizationhpisbingmorecentralizeddifferencesnomonprocessfordecisionmaking;verytop-down,slow,longdecisioncycletimes;butthoughtfulandhighinvolvementgeneralperceptionthatdecisionsarerarelymade,buttendtostickoncemadepaqonpaqsimilaritiesgoalschangefrequentlyandnotsynchronizedbetweenfront-endandback-endorganizationspeoplearenotheldaccountable;structureandmeasurementsystemscloudaccountabilitystrongmatrixmanagementleadingtofuzzylinesofaccountabilitiesperformancemanagementinconsistent,generallypoorplanningandcontrolcross-organizationalcollaborationdifficultcountrymanagersarekingsmanythingsareverycentralizeddifferencesdecisionsmadequicklyalotof“checkingin”tomakeadecision,iterativedecisions,top-downcongruencemodeloutputinputenvironmentresourceshistorystrategysystemunitindividualworkpeopleformalorganizationinformalorganizationinformalorganizationhponhpasstrengthsimilaritiesstrongsenseofethicsstrongcustomer-focus(makegreatproducts)teamculture,havetobepartofthegroupgettingresultsisrewarded,sometimeseffortwithoutaresultgetsrewardedhavingbignewideasisvaluedtreatpeoplewithdignitymultiplesubculturesdifferencesconflictavoidanceandoverpromisearenormaltitlesnotreferenced,egalitarianuniquementary“silomentality”failuredeservesasecondchancediversityandpeoplearevaluedpaqonpaqsimilaritiesethicalbehaviorisenforcedstrongcustomerorientation(makewhattheywant)teamworkisvaluedhighlyresults/bottom-linefocused,sometimeseffortwithoutaresultsgetsrewardedopennesstogood/newideasdon’tpubliclyembarrasspeoplemultiplesubculturesdifferencesconflictaddresseddirectly/openly,aggressive,brashtitlesarereferenced,abundant,hierarchicaluniquementaryinitiative,flexibility,“goforit”attitudearevaluedrelaxed/flexworkenvironment;longworkinghourshereandnoworientationconcernsabouttheotherpanyculturalduediligencestudyadvicetocarly&michaelfrominterviewsandfocusgroups:beinclusivedefineyourworkandrolesdefinemunicatewhatyouwantthenewpanytobebeboldclarifyrolesandorganizationstructuretakeactionquicklycontinuetomunicatealot;behonest,butbesensitiveinwhatyousayculturalduediligencestudyregion-specificfindingsparisonofhpwithpaq--NorthAmericaCulturalgapdifferencesarestatisticallysignificant.paq’sAverageHP’sAverageparisonofhpwithpaq--LatinAmericaCulturalgapdifferencesarestatisticallysignificant.paq’sAverageHP’sAverageparisonofhpwithpaq--EMEACulturalgapdifferencesarestatisticallysignificant.paq’sAverageHP’sAverageparisonofhpwithpaq--AsiaPacificCulturalgapdifferencesarestatisticallysignificant.paq’sAverageHP’sAverageparisonofhpwithpaq--EnterprisewideCulturalgapdifferencesarestatisticallysignificant.paq’sAverageHP’sAverageculturalduediligencestudyinsummary...wealsoheardpeoplesaythat:bothpanycultureswereintransitionbeforethemergerthedirectionthateachcultureneededtotakewas,actually,toadoptthestrengthsoftheotherso,ifyouintegratewell,buildingoneachother’sstrengths,thepotentialforsuccessisgreatculturalduediligencestudyculturalcornerstonesnewhpculturalcornerstones 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valuespassionforcustomerstrust&respectachievement&contributionupromisingintegrityteamworkmeaningfulinnovationspeed&agilityprofitglobal

citizenshipleadershipcapabilityemployeemitmentcorporate

objectivescustomerloyaltygrowthmarketleadershipmetrics&

rewardsstructure&processesstrategiesbehaviorspolicies&practiceslessonslearnedfirst,thoughtherewereimportantdifferencesbetweenthepre-mergehpandpaqorganizations,therewereagreatmanysimilarities;and,therewereagreatmanypositivecharacteristicsthatbothpaniesshared(forexample,theemphasisonteamwork)tominimizeunproductiveconflictmovingforward,thereareseverallessonsorimplicationsfromthisstudyforhowweworktogether:focusandbuilduponourmon