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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 interviews 138 focus groups spanning 1,500 managers and indivi
2、dual contributors in 22 countriescongruence modeloutput inputenvironmentresourceshistorystrategysystemunitindividualworkpeopleformalorganizationinformalorganization3cultural due diligence paring and contrasting pre-merge hp and compaq2.definitions similarities-things that the people in each company
3、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
4、 about3.the findings reflect perceptionscongruence modeloutput inputenvironmentresourceshistorystrategysystemunitindividualworkpeopleformalorganizationinformalorganization5inputhp on hpsimilarities proud about HP legacy industry consolidating disadvantaged in supply chain and overhead costs good pro
5、ductsunique commentary pride in success linked to innovation technical/engineering heritage good reputation with customers power historically with the business and the back endcompaq on compaqsimilarities strong brand,products and services industry consolidating disadvantaged in supply chain and ove
6、rhead costs good productsunique commentary historically fast,nimble,and able to execute traditionally short-term focused fast growth through new business model redefined computing landscape6congruence modeloutput inputenvironmentresourceshistorystrategysystemunitindividualworkpeopleformalorganizatio
7、ninformalorganization7strategyhp on hpsimilarities top-down strategy;mid-management not involved need for planning and execution process differences strategy is long-term orientedunique commentary strategy increasingly unclear as you go down the organization strategy has to be translated into someth
8、ing concretecompaq on compaqsimilarities strategy comes through a top-down process little/no strategic processdifferences susceptible to frequent changes in direction customer focused with a short-term orientation toward the market;interferes with investing/building for the futureunique commentary t
9、endency to be influenced more by major customer accounts than technological advancements8congruence modeloutput inputenvironmentresourceshistorystrategysystemunitindividualworkpeopleformalorganizationinformalorganization9workhp on hpdifferences respect for process strong planning and financial proce
10、sses work process is organizationally based,vertically strong,works wellunique 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 owner
11、ship of workcompaq on compaqdifferences process seen as bureaucracy,aversion to processes lack of clear,disciplined processes work process:swat teamsunique commentary technology is great information systems are not integrated multitasking is a norm work-life balance is not achieved10congruence model
12、output inputenvironmentresourceshistorystrategysystemunitindividualworkpeopleformalorganizationinformalorganization11peoplehp on hpsimilarities low credibility in leadershipdifferences leadership focused on relationships(how things get done)unique commentary multicultural,diverse,dedicated workforce
13、 team-oriented losing the“family feeling”lower levels of management are informal;top management is more formal and removed recent changes led to low moralecompaq on compaqsimilarities low credibility in leadershipdifferences leadership achievement-oriented,rugged individualists(what gets done)unique
14、 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 field12congruence modeloutput inputenvironmentresourceshistorystrategysystemunitind
15、ividualworkpeopleformalorganizationinformalorganization13formal organizationhp on hpsimilarities 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 exacerbate
16、d problems with accountability hp is horizontally challenged more power moving to the front-end organization hp is becoming more centralizeddifferences no common process for decision making;very top-down,slow,long decision cycle times;but thoughtful and high involvement general perception that decis
17、ions are rarely made,but tend to stick once madecompaq on compaqsimilarities 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 line
18、s of accountabilities performance management inconsistent,generally poor planning and control cross-organizational collaboration difficult country managers are kings many things are very centralizeddifferences decisions made quickly a lot of“checking in”to make a decision,iterative decisions,top-dow
19、n14congruence modeloutput inputenvironmentresourceshistorystrategysystemunitindividualworkpeopleformalorganizationinformalorganization15informal organizationhp on hp as strengthsimilarities strong sense of ethics strong customer-focus(make great products)team culture,have to be part of the group get
20、ting results is rewarded,sometimes effort without a result gets rewarded having big new ideas is valued treat people with dignity multiple subculturesdifferences conflict avoidance and over-compromise are normal titles not referenced,egalitarianunique commentary“silo mentality”failure deserves a sec
21、ond chance diversity and people are valuedcompaq on compaqsimilarities 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 embarras
22、s people multiple subculturesdifferences conflict addressed directly/openly,aggressive,brash titles are referenced,abundant,hierarchicalunique commentary initiative,flexibility,“go for it”attitude are valued relaxed/flex work environment;long working hours here and now orientation16concerns about th
23、e other company17cultural due diligence studyadvice 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 h
24、onest,but be sensitive in what you saycultural due diligence studyregion-specific findingsComparison of hp with Compaq-North AmericaCultural gap differences are statistically significant.Compaqs AverageHPs Average20Comparison of hp with Compaq-Latin AmericaCultural gap differences are statistically
25、significant.Compaqs AverageHPs Average21Comparison of hp with Compaq-EMEACultural gap differences are statistically significant.Compaqs AverageHPs Average22Comparison of hp with Compaq-Asia PacificCultural gap differences are statistically significant.Compaqs AverageHPs Average23Comparison of hp wit
26、h Compaq-Enterprise wideCultural gap differences are statistically significant.Compaqs AverageHPs Average24cultural due diligence studyin 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 otherso,if you integrate well,building on each others strengths,the potential for success is greatcultural due diligence studycultural cornerstones