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Click to edit Master text styles,Second level,Third level,Fourth level,Fifth level,Click to edit Master title style,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 and individual contributors in,22,countries,congruence model,output,input,environment,resources,history,strategy,system,unit,individual,work,people,formal,organization,informal,organization,3,cultural due diligence study,1. comparing and contrasting pre-merge,hp,and compaq,2. definitions,similarities - 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 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,5,input,hp,on,hp,similarities,proud about HP legacy,industry consolidating,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 services,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,6,congruence model,output,input,environment,resources,history,strategy,system,unit,individual,work,people,formal,organization,informal,organization,7,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 increasingly 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 orientation toward the market; interferes with investing/building for the future,unique commentary,tendency to be influenced more by major customer accounts than technological advancements,8,congruence model,output,input,environment,resources,history,strategy,system,unit,individual,work,people,formal,organization,informal,organization,9,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 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 great,information systems are not integrated,multitasking is a norm,work-life balance is not achieved,10,congruence model,output,input,environment,resources,history,strategy,system,unit,individual,work,people,formal,organization,informal,organization,11,people,hp,on,hp,similarities,low credibility in leadership,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,compaq 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 in training and development,people do not feel empowered, except in field,12,congruence model,output,input,environment,resources,history,strategy,system,unit,individual,work,people,formal,organization,informal,organization,13,formal organization,hp,on,hp,similarities,goals change too often; they are unclear, 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 centralized,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 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 collaboration 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,14,congruence model,output,input,environment,resources,history,strategy,system,unit,individual,work,people,formal,organization,informal,organization,15,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 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 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, aggressive, 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,16,concerns about the other company,17,cultural due diligence study,advice to carly & michael from interviews and focus groups:,be inclusive,define your work and roles,define/communicate what you want the new company to be,be bold,clarify roles and organization structure,take action quickly,continue to communicate a lot; be honest, but be 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.,Compaqs Average,HPs Average,20,Comparison of,hp,with Compaq -Latin America,Cultural gap differences are statistically significant.,Compaqs Average,HPs Average,21,Comparison of,hp,with Compaq -EMEA,Cultural gap differences are statistically significant.,Compaqs Average,HPs Average,22,Comparison of,hp,with Compaq -Asia Pacific,Cultural gap differences are statistically significant.,Compaqs Average,HPs Average,23,Comparison of,hp,with Compaq -Enterprise wide,Cultural gap differences are statistically significant.,Compaqs Average,HPs Average,24,cultural due diligence study,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 great,cultural due diligence study,cultural cornerstones,new,hp,cultural cornerstones,(,release 1.0,),values,passion for customers,trust & respect,achievement & contribution,uncompromising integrity,teamwork,meaningful innovation,speed & agility,profit,global citizenship,leadership,capability,employee,commitment,corporateobjectives,customer,loyalty,growth,market,leadership,metrics & rewards,structure & processes,strategies,behaviors,policies &,practices,27,lessons learned,first, though there were important differences between the pre-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 strengths,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 about 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 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,28,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,:,
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