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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 interviews138 focus groups spanning 1,500 managers and individu
2、al contributors in 22 countriescongruence modeloutputinputenvironmentresourceshistorystrategysystemunitindividualworkpeopleformalorganizationinformalorganization3cultural due diligence paring and contrasting pre-merge hp and compaq2.definitionssimilarities-things that the people in each company perc
3、eived 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 much less about
4、3.the findings reflect perceptionscongruence modeloutputinputenvironmentresourceshistorystrategysystemunitindividualworkpeopleformalorganizationinformalorganization5inputhp on hpsimilaritiesproud about HP legacyindustry consolidatingdisadvantaged in supply chain and overhead costsgood productsunique
5、 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 pr
6、oductsunique commentaryhistorically fast,nimble,and able to executetraditionally short-term focusedfast growth through new business modelredefined computing landscape6congruence modeloutputinputenvironmentresourceshistorystrategysystemunitindividualworkpeopleformalorganizationinformalorganization7st
7、rategyhp 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 concretecompaq on compaqs
8、imilaritiesstrategy 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 m
9、ajor customer accounts than technological advancements8congruence modeloutputinputenvironmentresourceshistorystrategysystemunitindividualworkpeopleformalorganizationinformalorganization9workhp on hpdifferencesrespect for processstrong planning and financial processeswork process is organizationally
10、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 workcompaq on compaqdifferencespr
11、ocess 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 modeloutputinputenvironmentresourceshistorystrategysy
12、stemunitindividualworkpeopleformalorganizationinformalorganization11peoplehp on hpsimilaritieslow credibility in leadershipdifferencesleadership focused on relationships(how things get done)unique commentarymulticultural,diverse,dedicated workforceteam-orientedlosing the“family feeling”lower levels
13、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 bright,committed,and work hard,long
14、 hoursgood interpersonal relationshipslearning happens on the jobinsufficient investment in training and developmentpeople do not feel empowered,except in field12congruence modeloutputinputenvironmentresourceshistorystrategysystemunitindividualworkpeopleformalorganizationinformalorganization13formal
15、 organizationhp 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 p
16、ower 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 tend to stick once madecompaq on compaqsimila
17、ritiesgoals 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 p
18、lanning 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 modeloutputinputenvironmentresourceshistorystrategysystemunitindi
19、vidualworkpeopleformalorganizationinformalorganization15informal 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
20、new ideas is 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
21、 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 subculturesdifferencesconflict addressed directly/openly,aggressive,brashtitl
22、es 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 diligence studyadvice to carly&michael from interviews and focus group
23、s: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 saycultural due diligence studyregion-specific findingsComparison of hp
24、 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 Average21Comparison of hp with Compaq-EMEACultural gap differences are stat
25、istically significant.Compaqs AverageHPs Average22Comparison of hp with Compaq-Asia PacificCultural gap differences are statistically significant.Compaqs AverageHPs Average23Comparison of hp with Compaq-Enterprise wideCultural gap differences are statistically significant.Compaqs AverageHPs Average2
26、4cultural 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 otherso,if you integrate well,building on each others strengths,the potential for
27、success is greatcultural due diligence studycultural cornerstonesnew hp cultural cornerstones(release 1.0)valuespassion for customerstrust&respectachievement&contributionuncompromising integrityteamwork meaningful innovationspeed&agilityprofitglobal citizenshipleadershipcapabilityemployeecommitmentc
28、orporateobjectivescustomerloyaltygrowthmarketleadershipmetrics&rewardsstructure&processesstrategies behaviorspolicies&practices27lessons learnedfirst,though there were important differences between the pre-merge hp and compaq organizations,there were a great many similarities;and,there were a great
29、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 appro
30、priate time horizon(long-term vs.short-term)for any business strategy or set of strategiesclarify 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 subjectagree up front on an app
31、roach to decision making to ensure that everyone is on the same page before entertaining discussion about the subject mattertake 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 problem
32、swhere gaps or similarities are consistent across the enterprise,use the same approach to closing the gaps and building upon positive similarities28cultural due diligence studyThe 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:/