1、cultural due diligence studywelcomeagenda:presentation of findings q&a sessioncultural due diligence studypresentation of findingscultural due diligence studydata collected from around the world in both companies:127 individual executive interviews138 focus groups spanning 1,500 managers and individ
2、ual contributors in 22 countriescongruence modeloutputinputenvironmentresourceshistorystrategysystemunitindividualworkpeopleformalorganizationinformalorganizationcultural due diligence paring and contrasting pre-merge hp and compaq2.definitions similarities-things that the people in each company per
3、ceived 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 ab
4、out3.the findings reflect perceptionscongruence modeloutputinputenvironmentresourceshistorystrategysystemunitindividualworkpeopleformalorganizationinformalorganizationinputhp on hpsimilaritiesproud about HP legacyindustry consolidatingdisadvantaged in supply chain and overhead costsgood productsuniq
5、ue 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 overhead costsgood
6、productsunique commentaryhistorically fast,nimble,and able to executetraditionally short-term focusedfast growth through new business modelredefined computing landscapecongruence modeloutputinputenvironmentresourceshistorystrategysystemunitindividualworkpeopleformalorganizationinformalorganizationst
7、rategyhp on hpsimilaritiestop-down strategy;mid-management not involvedneed for planning and execution process differences strategy is long-term orientedunique commentarystrategy increasingly unclear as you go down the organizationstrategy has to be translated into something concretecompaq on compaq
8、similaritiesstrategy 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 influenced more by
9、major customer accounts than technological advancementscongruence modeloutputinputenvironmentresourceshistorystrategysystemunitindividualworkpeopleformalorganizationinformalorganizationworkhp on hpdifferencesrespect for processstrong planning and financial processeswork process is organizationally b
10、ased,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 workcompaq on compaqdifferencespro
11、cess 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 achievedcongruence modeloutputinputenvironmentresourceshistorystrategysyste
12、munitindividualworkpeopleformalorganizationinformalorganizationpeoplehp on hpsimilaritieslow credibility in leadershipdifferencesleadership focused on relationships(how things get done)unique commentarymulticultural,diverse,dedicated workforceteam-orientedlosing the“family feeling”lower levels of ma
13、nagement 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 bright,committed,and work hard,long hour
14、sgood interpersonal relationshipslearning happens on the jobinsufficient investment in training and developmentpeople do not feel empowered,except in fieldcongruence modeloutputinputenvironmentresourceshistorystrategysystemunitindividualworkpeopleformalorganizationinformalorganizationformal organiza
15、tionhp on hpsimilaritiesgoals change too often;they are unclear,execution not enforcedno consequences for not meeting objectives;performance metrics unclear or absent,differ across“silos”front-end/back-end structure exacerbated problems with accountabilityhp is horizontally challengedmore power movi
16、ng 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 tend to stick once madecompaq on compaqsimilaritiesgoa
17、ls 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 accountabilitiesperformance management inconsistent,generally poor planning a
18、nd controlcross-organizational collaboration difficultcountry managers are kingsmany things are very centralizeddifferencesdecisions made quicklya lot of“checking in”to make a decision,iterative decisions,top-downcongruence modeloutputinputenvironmentresourceshistorystrategysystemunitindividualworkp
19、eopleformalorganizationinformalorganizationinformal 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,sometimes effort without a result gets rewardedhaving big new ideas is
20、valuedtreat people with dignitymultiple subculturesdifferencesconflict avoidance and over-compromise are normaltitles not referenced,egalitarianunique commentary“silo mentality”failure deserves a second chancediversity and people are valuedcompaq on compaqsimilaritiesethical behavior is enforcedstro
21、ng 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 subculturesdifferencesconflict addressed directly/openly,aggressive,brashtitles are refere
22、nced,abundant,hierarchicalunique commentaryinitiative,flexibility,“go for it”attitude are valuedrelaxed/flex work environment;long working hourshere and now orientationconcerns about the other company31%22%21%19%19%8%32%19%17%11%0%5%10%15%20%25%30%35%Compaqs business operations and performance have
23、beenpoorCompaqs aggressive behavior violates HPs sense of integrityCompaq seems to be taking overlike a reverse acquisitionCompaq has a command and control management styleCompaqs brash and bold style can be offensive to HP peopleCompaq is not what it seemsHP is slow to move and is encumbered by too
24、 much processfocusHP people seem resistant to changeHP doesnt make tough callsHP is not very visible to customersHP InterviewsCompaq Interviewscultural due diligence studyadvice to carly&michael from interviews and focus groups:be inclusive define your work and roles define/communicate what you want
25、 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 saycultural due diligence studyregion-specific findingsComparison of hp with Compaq-North AmericaCultural gap differences are statistically
26、 significant.Compaqs AverageHPs Average Cultural Gaps 1 2 3 4 5 Precedence.Looks to theorganizations rich history as a sourceof knowledge.Inquiry.Focuses on futurepossibilities and learn as they go.Internal Focus.Focuses mostly onimprovement of internal processesand structures;has moderateawareness
27、of our competitors.External Focus.Focuses mostly onpursuit of new markets andcustomers;is very much aware ofcompetitors and closely follows themoves they makeSystematic.Relies heavily onorganized plans for our work.Workprocesses are clearly defined.Spontaneous.Relies on ability torespond to just-in-
28、time opportunities;continually“turns on a dime”to meetdemands.Precision.Getting the job doneright is more important than gettingit done quickly,even though it maytake extra time.Speed.Getting the job done fastmakes“roughly right”outcomesacceptable even though we maysacrifice discipline or rigor.Refl
29、ection.Values review ofsignificant events;debrief events toshare insights and best practices.Iteration.Values a“trial and error”approach;forges ahead withoutlooking back.Cultural SimilaritiesWinner Focused.Conflicts areresolved by debating until there is awinner.Issue Focused.Conflicts areresolved b
30、y exploring the merits ofdiffering points of view.Competition.People tend to befocused on their own advancementand achievement.Cooperation.People tend to offerhelp and support to ensure others aresuccessful.Dominance.Pursues growth throughproduct proliferation/line extensionsand acquisitions.Value.P
31、ursues growth throughproduct innovation and anticipation ofemerging customer needs.Threat.Is anxious about their future.Past successes are not sufficient toensure continued performance.Opportunity.Is excited about theirfuture.Track record has positionedthem well for future success.Reaction.Changes i
32、n response tosignificant events.Initiation.Initiates change inanticipation of significant events.Comparison of hp with Compaq-Latin AmericaCultural gap differences are statistically significant.Compaqs AverageHPs Average Cultural Gaps 1 2 3 4 5Precedence.Looks to theorganizations rich history as a s
33、ourceof knowledge.Inquiry.Focuses on futurepossibilities and learn as they go.Internal Focus.Focuses mostly onimprovement of internal processesand structures;has moderateawareness of our competitors.External Focus.Focuses mostly onpursuit of new markets andcustomers;is very much aware ofcompetitors
34、and closely follows themoves they makeSystematic.Relies heavily onorganized plans for our work.Workprocesses are clearly defined.Spontaneous.Relies on ability torespond to just-in-time opportunities;continually“turns on a dime”to meetdemands.Precision.Getting the job doneright is more important than
35、 gettingit done quickly,even though it maytake extra time.Speed.Getting the job done fastmakes“roughly right”outcomesacceptable even though we maysacrifice discipline or rigor.Emphasis on Consistency.Exceptions to policies and proceduresare discouraged;generally it is betterto act as others do.Lever
36、aging Differences.Policiesand procedures are often tailored to fitthe circumstances;generally it isacceptable to act in unique ways.Cultural SimilaritiesWinner Focused.Conflicts areresolved by debating until there is awinner.Issue Focused.Conflicts areresolved by exploring the merits ofdiffering poi
37、nts of view.Inspiring Performance.Praise andpublic acknowledgement from leadersis an important part of how people arerecognized.Enticing performance.The use ofcontests,cash rewards,bonuses,etc.,are important mechanisms forrecognition.Dominance.Pursues growth throughproduct proliferation/line extensi
38、onsand acquisitions.Value.Pursues growth throughproduct innovation and anticipation ofemerging customer needs.Threat.Is anxious about their future.Past successes are not sufficient toensure continued performance.Opportunity.Is excited about theirfuture.Track record has positionedthem well for future
39、 success.Integrated.Change efforts attempt toreach the entire organizationsimultaneouslyInsular.Change efforts focus ondiscreet segments or functions of thebusiness.Comparison of hp with Compaq-EMEACultural gap differences are statistically significant.Compaqs AverageHPs Average Cultural Gaps 1 2 3
40、4 5Precedence.Looks to theorganizations rich history as a sourceof knowledge.Inquiry.Focuses on futurepossibilities and learn as they go.Internal Focus.Focuses mostly onimprovement of internal processesand structures;has moderateawareness of our competitors.External Focus.Focuses mostly onpursuit of
41、 new markets andcustomers;is very much aware ofcompetitors and closely follows themoves they make Cost.Is heavily focused onmaximizing efficiency,maintainingstrong expense management,andcost reductionService.Is heavily focused onunderstanding and exceedingcustomer requirements throughdelivering grea
42、t products&services.Precision.Getting the job doneright is more important than gettingit done quickly,even though it maytake extra time.Speed.Getting the job done fastmakes“roughly right”outcomesacceptable even though we maysacrifice discipline or rigor.Emphasis on Consistency.Exceptions to policies
43、 and proceduresare discouraged;generally it is betterto act as others do.Leveraging Differences.Policiesand procedures are often tailored to fitthe circumstances;generally it isacceptable to act in unique ways.Cultural SimilaritiesIndependence.People tend to bemore comfortable workingindividually.In
44、terdependence.People tend to bemore comfortable workingcollaboratively.Targeted Focus.Pursues a vital fewgoals;typically headed in a clearlyfocused direction.Broad Reach.Pursues many goalssimultaneously;is broad reaching andmulti-focused.Dominance.Pursues growth throughproduct proliferation/line ext
45、ensionsand acquisitions.Value.Pursues growth throughproduct innovation and anticipation ofemerging customer needs.Designed.When implementingchange initiatives,involves only keypeople to coordinate/implement plans.Emergent.When implementingchange initiatives,involves manypeople to coordinate/implemen
46、t plans.Integrated.Change efforts attempt toreach the entire organizationsimultaneouslyInsular.Change efforts focus ondiscreet segments or functions of thebusiness.Cultural Gaps 1 2 3 4 5Precedence.Looks to theorganizations rich history as a sourceof knowledge.Inquiry.Focuses on futurepossibilities
47、and learn as they go.Internal Focus.Focuses mostly onimprovement of internal processesand structures;has moderateawareness of our competitors.External Focus.Focuses mostly onpursuit of new markets andcustomers;is very much aware ofcompetitors and closely follows themoves they makeCost.Is heavily foc
48、used onmaximizing efficiency,maintainingstrong expense management,andcost reductionService.Is heavily focused onunderstanding and exceedingcustomer requirements throughdelivering great products&services.Threat.Is anxious about their future.Past successes are not sufficient toensure continued perform
49、ance.Opportunity.Is excited about theirfuture.Track record has positionedthem well for future success.Replication.Takes solutions thatworked in one place and applies themin others;“safe bets”are encouraged.Experimentation.Consistently triesto find new ways of solving problems;risk taking is encourag
50、ed.Cultural Similarities Independence.People tend to bemore comfortable workingindividually.Interdependence.People tend to bemore comfortable workingcollaboratively.Inspiring Performance.Praise andpublic acknowledgement from leadersis an important part of how people arerecognized.Enticing performanc
