1、cultural due diligence study,welcome agenda: presentation of findings q&a session,cultural due diligence study,presentation of findings,cultural due diligence study,data collected from around the world in both companies: 127 individual executive interviews 138 focus groups spanning 1,500 managers an
2、d individual contributors in 22 countries,congruence model,output,input,environment,resources,history,strategy,system,unit,individual,work,people,formal organization,informal organization,cultural due diligence study,1. comparing and contrasting pre-merge hp and compaq 2. definitions similarities -
3、things that the people in each company perceived about themselves that matched the other company differences - things that the people in each company perceived about themselves that were at odds with the other company unique commentary - things that people in each company expressed very often which
4、those in the other company talked much less about 3. the findings reflect perceptions,congruence model,output,input,environment,resources,history,strategy,system,unit,individual,work,people,formal organization,informal organization,input,hp on hp similarities proud about HP legacy industry consolida
5、ting disadvantaged in supply chain and overhead costs good products unique commentary pride in success linked to innovation technical/engineering heritage good reputation with customers power historically with the business and the back end,compaq on compaq similarities strong brand, products and ser
6、vices industry consolidating disadvantaged in supply chain and overhead costs good products unique commentary historically fast, nimble, and able to execute traditionally short-term focused fast growth through new business model redefined computing landscape,congruence model,output,input,environment
7、,resources,history,strategy,system,unit,individual,work,people,formal organization,informal organization,strategy,hp on hp similarities top-down strategy; mid-management not involved need for planning and execution process differences strategy is long-term oriented unique commentary strategy increas
8、ingly unclear as you go down the organization strategy has to be translated into something concrete,compaq on compaq similarities strategy comes through a top-down process little/no strategic process differences susceptible to frequent changes in direction customer focused with a short-term orientat
9、ion toward the market; interferes with investing/building for the future unique commentary tendency to be influenced more by major customer accounts than technological advancements,congruence model,output,input,environment,resources,history,strategy,system,unit,individual,work,people,formal organiza
10、tion,informal organization,work,hp on hp differences respect for process strong planning and financial processes work process is organizationally based, vertically strong, works well unique commentary autonomy in managing ones own work is the norm; accountability at individual level upper management
11、 does not seem to be held accountable in the same way as others poor cross-functional accountabilities and ownership of work,compaq on compaq differences process seen as bureaucracy, aversion to processes lack of clear, disciplined processes work process: swat teams unique commentary technology is g
12、reat information systems are not integrated multitasking is a norm work-life balance is not achieved,congruence model,output,input,environment,resources,history,strategy,system,unit,individual,work,people,formal organization,informal organization,people,hp on hp similarities low credibility in leade
13、rship differences leadership focused on relationships (how things get done) unique commentary multicultural, diverse, dedicated workforce team-oriented losing the “family feeling” lower levels of management are informal; top management is more formal and removed recent changes led to low morale,comp
14、aq on compaq similarities low credibility in leadership differences leadership achievement-oriented, rugged individualists (what gets done) unique commentary people are bright, committed, and work hard, long hours good interpersonal relationships learning happens on the job insufficient investment i
15、n training and development people do not feel empowered, except in field,congruence model,output,input,environment,resources,history,strategy,system,unit,individual,work,people,formal organization,informal organization,formal organization,hp on hp similarities goals change too often; they are unclea
16、r, execution not enforced no consequences for not meeting objectives; performance metrics unclear or absent, differ across “silos” front-end/back-end structure exacerbated problems with accountability hp is horizontally challenged more power moving to the front-end organization hp is becoming more c
17、entralized differences no common process for decision making; very top-down, slow, long decision cycle times; but thoughtful and high involvement general perception that decisions are rarely made, but tend to stick once made,compaq on compaq similarities goals change frequently and not synchronized
18、between front-end and back-end organizations people are not held accountable; structure and measurement systems cloud accountability strong matrix management leading to fuzzy lines of accountabilities performance management inconsistent, generally poor planning and control cross-organizational colla
19、boration difficult country managers are kings many things are very centralized differences decisions made quickly a lot of “checking in” to make a decision, iterative decisions, top-down,congruence model,output,input,environment,resources,history,strategy,system,unit,individual,work,people,formal or
20、ganization,informal organization,informal organization,hp on hp as strength similarities strong sense of ethics strong customer-focus (make great products) team culture, have to be part of the group getting results is rewarded, sometimes effort without a result gets rewarded having big new ideas is
21、valued treat people with dignity multiple subcultures differences conflict avoidance and over-compromise are normal titles not referenced, egalitarian unique commentary “silo mentality” failure deserves a second chance diversity and people are valued,compaq on compaq similarities ethical behavior is
22、 enforced strong customer orientation (make what they want) teamwork is valued highly results/bottom-line focused, sometimes effort without a results gets rewarded openness to good/new ideas dont publicly embarrass people multiple subcultures differences conflict addressed directly/openly, aggressiv
23、e, brash titles are referenced, abundant, hierarchical unique commentary initiative, flexibility, “go for it” attitude are valued relaxed/flex work environment; long working hours here and now orientation,concerns about the other company,cultural due diligence study,advice to carly be honest, but be
24、 sensitive in what you say,cultural due diligence study,region-specific findings,Comparison of hp with Compaq -North America,Cultural gap differences are statistically significant.,Comparison of hp with Compaq -Latin America,Cultural gap differences are statistically significant.,Comparison of hp wi
25、th Compaq -EMEA,Cultural gap differences are statistically significant.,Comparison of hp with Compaq -Asia Pacific,Cultural gap differences are statistically significant.,Comparison of hp with Compaq -Enterprise wide,Cultural gap differences are statistically significant.,cultural due diligence stud
26、y,in summary . . . we also heard people say that: both company cultures were in transition before the merger the direction that each culture needed to take was, actually, to adopt the strengths of the other so, if you integrate well, building on each others strengths, the potential for success is gr
27、eat,cultural due diligence study,cultural cornerstones,new hp cultural cornerstones (release 1.0 ),valuespassion for customers trust & respect achievement & contribution uncompromising integrity teamwork meaningful innovation speed & agility,profit,global citizenship,leadership capability,employee c
28、ommitment,corporate objectives,customer loyalty,growth,market leadership,metrics & rewards,structure & processes,strategies,behaviors,policies & practices,lessons learned,first, though there were important differences between the pre-merge hp and compaq organizations, there were a great many similar
29、ities; 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 streng
30、ths come to agreement about the appropriate time horizon (long-term vs. short-term) for any business strategy or set of strategies clarify the meaning of terms or language that people are using before making judgments about others - two people may be thinking about different things while talking abo
31、ut the same subject agree up front on an approach to decision making to ensure that everyone is on the same page before entertaining discussion about the subject matter take peoples needs and experience (e.g., comfort dealing with conflict, orientation to hierarchy) into account in how you approach
32、problems and in how you interact to solve problems where gaps or similarities are consistent across the enterprise, use the same approach to closing the gaps and building upon positive similarities,cultural due diligence study,The results of the CDD will be posted on the newhpway webpage. See the following url for more information on CDD and the cultural cornerstones of the new hp:http:/
