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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 indi

2、vidual contributors in 22 countriescongruence modeloutputinputenvironmentresourceshistorystrategysystemunitindividualworkpeopleformalorganizationinformalorganization3cultural due diligence study1. comparing and contrasting pre-merge hp and compaq2. definitions similarities - things that the people i

3、n 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 compa

4、ny talked much less about3. the findings reflect perceptionscongruence modeloutputinputenvironmentresourceshistorystrategysystemunitindividualworkpeopleformalorganizationinformalorganization5inputhp on hpsimilaritiesproud about HP legacyindustry consolidatingdisadvantaged in supply chain and overhea

5、d costsgood productsunique 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 chai

6、n and overhead costsgood productsunique commentaryhistorically fast, nimble, and able to executetraditionally short-term focusedfast growth through new business modelredefined computing landscape6congruence modeloutputinputenvironmentresourceshistorystrategysystemunitindividualworkpeopleformalorgani

7、zationinformalorganization7strategyhp 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 some

8、thing concretecompaq on compaqsimilaritiesstrategy 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 commentaryten

9、dency to be influenced more by major customer accounts than technological advancements8congruence modeloutputinputenvironmentresourceshistorystrategysystemunitindividualworkpeopleformalorganizationinformalorganization9workhp on hpdifferencesrespect for processstrong planning and financial processesw

10、ork process is organizationally 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 o

11、f workcompaq on compaqdifferencesprocess 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 modeloutputinpu

12、tenvironmentresourceshistorystrategysystemunitindividualworkpeopleformalorganizationinformalorganization11peoplehp on hpsimilaritieslow credibility in leadershipdifferencesleadership focused on relationships (how things get done)unique commentarymulticultural, diverse, dedicated workforceteam-orient

13、edlosing the “family feeling”lower levels 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 commentaryp

14、eople are bright, committed, and work hard, long hoursgood interpersonal relationshipslearning happens on the jobinsufficient investment in training and developmentpeople do not feel empowered, except in field12congruence modeloutputinputenvironmentresourceshistorystrategysystemunitindividualworkpeo

15、pleformalorganizationinformalorganization13formal 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

16、with accountabilityhp is horizontally challengedmore power 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 rar

17、ely made, but tend to stick once madecompaq on compaqsimilaritiesgoals 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 accounta

18、bilitiesperformance management inconsistent, generally poor planning 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

19、modeloutputinputenvironmentresourceshistorystrategysystemunitindividualworkpeopleformalorganizationinformalorganization15informal organizationhp on hp as strengthsimilaritiesstrong sense of ethicsstrong customer-focus (make great products)team culture, have to be part of the groupgetting results is

20、rewarded, sometimes effort without a result gets rewardedhaving big 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

21、 and people are valuedcompaq on compaqsimilaritiesethical behavior is 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 subcul

22、turesdifferencesconflict addressed directly/openly, aggressive, brashtitles are referenced, abundant, hierarchicalunique commentaryinitiative, flexibility, “go for it” attitude are valuedrelaxed/flex work environment; long working hourshere and now orientation16concerns about the other company31%22%

23、21%19%19%8%32%19%17%11%0%5%10%15%20%25%30%35%Compaqs business operations and performance have 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 b

24、e offensive to HP peopleCompaq is not what it seemsHP is slow to move and is encumbered by too much processfocusHP people seem resistant to changeHP doesnt make tough callsHP is not very visible to customersHP InterviewsCompaq Interviews17cultural due diligence studyadvice to carly & michael fro

25、m 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 saycultural due diligence studyreg

26、ion-specific findingsComparison of hp with Compaq -North AmericaCultural gap differences are statistically 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 th

27、ey 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 makeSystematic. Relies heavily on

28、organized 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 gettingit done quickly, even though it maytake extra time.Sp

29、eed. Getting the job done fastmakes “roughly right” outcomesacceptable even though we maysacrifice discipline or rigor.Reflection. Values review ofsignificant events; debrief events toshare insights and best practices.Iteration. Values a “trial and error”approach; forges ahead withoutlooking back.Cu

30、ltural SimilaritiesWinner Focused. Conflicts areresolved by debating until there is awinner.Issue Focused. Conflicts areresolved by exploring the merits ofdiffering points of view.Competition. People tend to befocused on their own advancementand achievement.Cooperation. People tend to offerhelp and

31、support to ensure others aresuccessful.Dominance. Pursues growth throughproduct proliferation/line extensionsand acquisitions.Value. Pursues growth throughproduct innovation and anticipation ofemerging customer needs.Threat. Is anxious about their future.Past successes are not sufficient toensure co

32、ntinued performance.Opportunity. Is excited about theirfuture. Track record has positionedthem well for future success.Reaction. Changes in response tosignificant events.Initiation. Initiates change inanticipation of significant events.20Comparison of hp with Compaq -Latin AmericaCultural gap differ

33、ences are statistically significant.Compaqs AverageHPs Average Cultural Gaps 1 2 3 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 structur

34、es; has moderateawareness 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 o

35、n ability torespond to just-in-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

36、 maysacrifice discipline or rigor.Emphasis on Consistency.Exceptions to policies 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.Cultura

37、l SimilaritiesWinner Focused. Conflicts areresolved by debating until there is awinner.Issue Focused. Conflicts areresolved by exploring the merits ofdiffering points of view.Inspiring Performance. Praise andpublic acknowledgement from leadersis an important part of how people arerecognized.Enticing

38、 performance. The use ofcontests, cash rewards, bonuses,etc., are important mechanisms forrecognition.Dominance. Pursues growth throughproduct proliferation/line extensionsand acquisitions.Value. Pursues growth throughproduct innovation and anticipation ofemerging customer needs.Threat. Is anxious a

39、bout their future.Past successes are not sufficient toensure continued performance.Opportunity. Is excited about theirfuture. Track record has positionedthem well for future success.Integrated. Change efforts attempt toreach the entire organizationsimultaneouslyInsular. Change efforts focus ondiscre

40、et segments or functions of thebusiness.21Comparison of hp with Compaq -EMEACultural gap differences are statistically significant.Compaqs AverageHPs Average Cultural Gaps 1 2 3 4 5Precedence. Looks to theorganizations rich history as a sourceof knowledge.Inquiry. Focuses on futurepossibilities and

41、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 make Cost. Is heavily f

42、ocused onmaximizing efficiency, maintainingstrong expense management, andcost reductionService. Is heavily focused onunderstanding and exceedingcustomer requirements throughdelivering great products & services.Precision. Getting the job doneright is more important than gettingit done quickly, ev

43、en 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.Leveraging Differences. Pol

44、iciesand procedures are often tailored to fitthe circumstances; generally it isacceptable to act in unique ways.Cultural SimilaritiesIndependence. People tend to bemore comfortable workingindividually.Interdependence. People tend to bemore comfortable workingcollaboratively.Targeted Focus. Pursues a

45、 vital fewgoals; typically headed in a clearlyfocused direction.Broad Reach. Pursues many goalssimultaneously; is broad reaching andmulti-focused.Dominance. Pursues growth throughproduct proliferation/line extensionsand acquisitions.Value. Pursues growth throughproduct innovation and anticipation of

46、emerging customer needs.Designed. When implementingchange initiatives, involves only keypeople to coordinate/implement plans.Emergent. When implementingchange initiatives, involves manypeople to coordinate/implement plans.Integrated. Change efforts attempt toreach the entire organizationsimultaneous

47、lyInsular. Change efforts focus ondiscreet segments or functions of thebusiness.22 Cultural Gaps 1 2 3 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 p

48、rocessesand 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 focused onmaximizing efficiency, maintainingstrong expense management, andcos

49、t 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 performance.Opportunity. Is excited about theirfuture. Track record has

50、 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 encouraged.Cultural Similarities Independence. People tend to bemo

51、re comfortable workingindividually.Interdependence. People tend to bemore comfortable workingcollaboratively.Inspiring Performance. Praise andpublic acknowledgement from leadersis an important part of how people arerecognized.Enticing performance. The use ofcontests, cash rewards, bonuses,etc., are

52、important mechanisms forrecognition.Competition. People tend to befocused on their own advancementand achievement.Cooperation. People tend to offerhelp and support to ensure others aresuccessful.Designed. When implementingchange initiatives, involves only keypeople to coordinate/implement plans.Emer

53、gent. When implementingchange initiatives, involves manypeople to coordinate/implement plans.Winner Focused. Conflicts areresolved by debating until there is awinner.Issue Focused. Conflicts areresolved by exploring the merits ofdiffering points of view.Comparison of hp with Compaq -Asia PacificCult

54、ural gap differences are statistically significant.Compaqs AverageHPs Average23Comparison of hp with Compaq -Enterprise wideCultural gap differences are statistically significant.Compaqs AverageHPs Average Cultural Gaps 1 2 3 4 5Precedence. Looks to theorganizations rich history as a sourceof knowle

55、dge.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 and close

56、ly 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 ge

57、ttingit done quickly, even though it maytake extra time.Speed. Getting the job done fastmakes “roughly right” outcomesacceptable even though we maysacrifice discipline or rigor.Reflection. Values review ofsignificant events; debrief events toshare insights and best practices.Iteration. Values a “tri

58、al and error”approach; forges ahead withoutlooking back.Cultural Similarities Winner Focused. Conflicts areresolved by debating until there is awinner.Issue Focused. Conflicts areresolved by exploring the merits ofdiffering points of view.Competition. People tend to befocused on their own advancemen

59、tand achievement.Cooperation. People tend to offerhelp and support to ensure others aresuccessful.Dominance. Pursues growth throughproduct proliferation/line extensionsand acquisitions.Value. Pursues growth throughproduct innovation and anticipation ofemerging customer needs.Threat. Is anxious about

60、 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 in response tosignificant events.Initiation. Initiates change inanticipation of significant events.24cultural due diligence studyin summary

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