××公司合并和獲得的文化整合的重要41張課件

1、Kwan Chee WeiDirector Human Capital GroupWatson Wyatt SingaporeThe Importance of Cultural Integration in Mergers and Acquisitions The Importance of Cultural IntAgenda M & A Statistics A Case Study WWs Approach to Cultural IntegrationWhat is Culture?Q & A 2Agenda M & A Statistics A CaseAgendaM & A St

2、atistics A Case Study WWs Approach to Cultural IntegrationWhat is Culture?Q & A 3AgendaM & A Statistics A Case Cultural & People Issues Often Present the Biggest Challenges“The hard stuff is easy - its the soft stuff thats so hard to change.”-Frederick SmithCEO, Federal Express4Cultural & People Iss

3、ues OftWatson Wyatt M & A Survey 2019(190 CEOs, CFO, Top Executives) 75% are clearly disappointing or outright failuresSource: Watson Wyatt Worldwide M&A Survey, November 201950% suffer an overall drop-off in productivity in first 4-8 months47% of acquired company executives leave within the first y

4、ear; 75% within the first three years“People problems” are cited as the top integration failure factor by a sample of 45 CFOs from Fortune 500 companies who have recently merged/acquiredOnly 23% of all acquisitions earn their cost of capitalOn average, management grade the financial performance of t

5、heir alliances as a “C minus” (on a scale of A to E)5Watson Wyatt M & A Survey 2019Corporate culture is identified as one of the most important integration issues Source: Watson Wyatt Worldwide M&A Survey, November 2019Activities required for “successful” integrationDownsizingRedeployment of workers

6、Recruitment of new staffRetraining workforceAlignment of comp & ben progLabor relationsManaging resistanceIntegration of corporate culturesRetention of key managersRetention of key talentCommunication37%40%59%57%36%63%78%88%91%90%010203040506070809010036%6Corporate culture is identifieCultural incom

7、patibility is the biggest problem, yet results indicate that it is the area least likely researched during due diligence.46%47%54%56%72%72%82%86%01020304050607080Organizational culture and dynamics of changeWorkforce potentialHR policy mattersMajor shareholdersManagement capabilities and willingness

8、 to cooperateFinancial aspects of HR functionMarket share, distributionHard assets90100Technological and business competencies75%Percentage of companies citing the type of information gathered during due diligenceSource: Watson Wyatt Worldwide M&A Survey, November 20197Cultural incompatibility is th

9、Reasons for successful integrationSource: Watson Wyatt Worldwide M&A Survey, November 2019Percentage of companies citing reason for success8%41%31%37%52%70%Shared responsibility of costs involvedEarly mgt of “What will happen to me?” employee issuesCultural compatibilityMutual agreement of road map

10、by partnersExpedient integrationWell planned communication throughout the deal processLeadership010203040506070809010035%8Reasons for successful integraAdditional M & A Statistics 1992 (Coopers & Lybrand) :- In 100 failed or troubled mergers, 85% of executives who were surveyed said the major proble

11、m was differences in management style and practices.2019 (British Institute of Management) :- reported the difficulties involved in merging two cultures to be a major factor in M & A failures.2019 (A.T Kearney) :- reviewed 155 M & A deals and determined most failures to be people-related.Hewitt Asso

12、ciates - 69% of respondents in 162 organizations involved in M & A reported the top challenge to be integrating two organizational cultures. 9Additional M & A Statistics 19How integration is handled will make the difference between success or failure .Earlier realization of financial “deal” goals (e

13、.g. cost synergy, strategic initiatives)Protect productivityMaintain customer focusSmoother transitionEmployees are focused on their jobs and not on personal issues10How integration is handled wilOrganizational Effectiveness Levers CareerDevelopment PerformanceManagementStaffingCompensation,Benefits

14、 &RewardsEmployeeCommunication OrganizationDesign & StructureBusinessStrategy & AlignedCulture LeadershipEffectiveness11Organizational Effectiveness LAgendaM & A Statistics A Case Study WWs Approach to Cultural IntegrationWhat is Culture?Q & A 12AgendaM & A Statistics A Case What is culture?Definiti

15、on of Culture:The attitudes and benefits about something that are shared by a particular group of a people or in a particular organization (Longman)The set of important assumptions that members of a community share in common (e.g Schein)Simply put :“ Corporate Culture is the way you do things in you

16、r organization”13What is culture?Definition of Reflects “What is tangible”, e.g. Organisational structure & processes Policies & procedures Physical environmentReflects the “Way we do things”, e.g. Degrees of collaboration Decision-making patterns Approaches to process improvementComponents of Cultu

17、reValues have little meaning unless they bring about specific behaviors .VISIBLECore ValuesBehaviourINVISIBLEattitude14Reflects “What is tangible”, eImplementation PlanImplementation PlanImplementation PlanThe implementation plan will encompass initiatives to create and support these behaviors.Core

18、ValuesBehaviourThe best way to achieve culture change is to focus on desired behaviors .15Implementation PlanImplementaAgendaM & A Statistics A Case Study WWs Approach to Cultural IntegrationWhat is Culture?Q & A 16AgendaM & A Statistics A Case Our Approach to Cultural IntegrationPerformGapAnalysisD

19、esign DesiredCulture-Top Team WorkshopValidation/ OwnershipCustomer StrategyAssess Current Culture-Interviews Focus GroupsCulture AuditBusiness ObjectivesDISCOVERDefiningOrganizationalCultureImplement Culture Change Programs-Training Org. Dev. CommunicationMeasurementDELIVERReinforcingOrganizational

20、CultureKnowledge sharing, involvement, and communicationsDevelop Culture Change Programs-Leadership Development,Culture Change Teams & Learning & DevelopmentINVENTDevelopingOrganizationalCulture17Our Approach to Cultural IntegAgenda M & A Statistics A Case Study WWs Approach to Cultural IntegrationW

21、hat is Culture?Q & A 18Agenda M & A Statistics A CaseA Case Study: Background InformationTwo organizations merged to form a new entityBoth organizations existed as government statutory boards with regulatory functionsNew company got listed on the local stock exchange with a clear bottom-line objecti

22、veNew company aims to be performance-driven, improve competitiveness and grow through strategic partnerships19A Case Study: Background InforInterviews Focus GroupsManagement WorkshopBest Practice ResearchInterviewsFocus GroupsCorporate Culture AuditCurrent Culture List of Desired Values Behaviour In

23、dicatorsCulture Development Programs Desired CultureThe Process of Culture Development 20Interviews Best Practice InterMission# 1 in the regionCustomer FocusedProfit DrivenInternal EnvironmentProfessional and flexibleBetter decision making processClear Performance - based rewardsMore Inter-departmen

24、t collaborationTailored employee communicationStrategyBottom-Line orientationProfitable products and servicesCost efficiencyMarket confidenceExpansion into other marketsStrategic alliancesService efficiencyTechnology is importantExternal EnvironmentIntense competitionIncreasing customer demands and

25、sophisticationLeveraging leading-edge technologyCore Values?What is the Current Culture?21MissionInternal EnvironmentStrDefining the new Core ValuesStrategyMissionInternal EnvironmentExternal EnvironmentCore Values?22Defining the new Core ValuesCCore Values:Customer service qualityBottom-line driven

26、Defining the Core Values# 1 in the regionCustomer focusedProfit drivenMissionCore ValuesMissionStrategyExternal EnvironmentInternal Environment23Core Values:Defining the Core Core Values:Bottom-line drivenObjectivity and integrityProduct innovationCustomer service qualityTechnology leveragedDefining

27、 the Core ValuesBottom-line orientationProfitable products and servicesCost efficiencyMarket confidenceExpansion into other marketsStrategic alliancesService efficiencyTechnology is importantStrategyCore ValuesMissionStrategyExternal EnvironmentInternal Environment24Core Values:Defining the Core Int

28、ense competitionIncreasing customer demands and sophisticationLeveraging leading-edge technologyCustomer service qualitySpeed and efficiencyFlexibilityTechnology leveragedCore Values:External EnvironmentDefining the Core ValuesCore ValuesMissionStrategyExternal EnvironmentInternal Environment25Custo

29、mer service qualityCore VProfessional and flexibleBetter decision making processClear performance - based rewardsMore inter-department collaborationTailored employee communicationInternal EnvironmentDefining the Core ValuesCore Values:Core Values:Employee of choice Efficient decision making - initia

30、tive, flexibilityObjectivity and integrityOpen communicationTeamworkCore ValuesMissionStrategyExternal EnvironmentInternal Environment26Internal EnvironmentDefining tMissionCustomer service qualityBottom-line drivenNew set of Core ValuesInternal EnvironmentEmployer of choiceEfficient decision making

31、 - initiative, flexibilityObjectivity and integrityOpen communicationTeamworkStrategyBottom-line drivenObjectivity and integrityProduct innovationCustomer service quality Technology leveragedExternal EnvironmentCustomer service qualitySpeed and efficiencyFlexibilityTechnology leveragedNew Set of Cor

32、e Values27MissionNew set of Core ValuesINew Core ValuesOrganisationBottom-line drivenEmployee orientedTeamwork Technology leveragedCustomers / StakeholdersCustomer service quality Objectivity and integrityProduct innovation28New Core ValuesOrganisation28Interviews Focus GroupsManagement WorkshopBest

33、 Practice ResearchInterviewsFocus GroupsCorporate Culture AuditCurrent Culture List of Desired Values Behaviour IndicatorsCulture Development Programs Desired CultureThe Process of Culture Development 29Interviews Best Practice InterReinforcing New CultureDesired CultureCommunicationPerformance Mana

34、gementCulture Development InitiativesPerformance Mgmt PlanTotal Rewards StrategyCulture Development TeamLearning& Development PlanCommunication PlanLeadership Development Plan30Reinforcing New CultureDesiredEmployee acceptance and support was enhanced through a comprehensive communication planKnowle

35、dge sharing, involvement, and communications Phase ScopePurposePhase 1Awareness BuildingThis is what is happeningCompany-wide* Link change initiatives with strategic plans* Give specific information about the process.* Announce senior managements involvementPhase 2Program StatusThis is where we are

36、going.Company-wide* Demonstrate senior management commitment.* Identify managers and employees issues.* Gain information from pilot tests.* Provide the big picture.Phase 3Roll-OutThis is what it means to you.Program Specific* Provide specific information on the changes being made and how they will a

37、ffect people.* Provide training in new roles skills and methods.Phase 4Follow-UpThis is how we will make it work.Team Specific* Listen to and act on managers and employees needs to implement changes.* Refine changes to ensure success.31Employee acceptance and supporCommunication PlanCommunication of

38、 Core Values to ALL employeesCore Values statementVideo from CEODivisional briefingsIncorporate into orientation for new staffIncorporate into Performance Management training via competency model32Communication PlanCommunicatioPerformance ManagementUsing the Balanced Scorecard approach, we helped de

39、velop the organisation scorecarddevelop the departmental scorecardsdefine the performance targets Developed a competency model based on Core ValuesPerformance management training for all employees33Performance ManagementUsing thRecognition ProgramsBonuses/IncentivesIndividual MeritBase PayBenefitsPe

40、rformanceResults-RelatedProgramsCoreProgramsStockTotal Rewards Strategy34Recognition Bonuses/IncentivesCulture Development InitiativesLearning & Development PlanIdentify organisational development needsDevelop learning and development plans that link to business and strategic objectivesLeadership De

41、velopment PlanConduct one-to-one sessions with management team members to develop individual leadership development plan Culture Development TeamsBuild cross-functional teams WW facilitates the interactions, planning and decision making of the teamsEncourage and appraise the demonstration of desired

42、 behaviours35Culture Development InitiativeLeadership Development Plan“Leaders walk the talk.”The degree to which the TopTeam accepts the change plan as the best one under the circumstancesThe degree to which the TopTeam accepts the new culture as being in line with their personal goals.The competen

43、ce of the organization, in terms of abilities, systems, infrastructure in achieving the change plan.The extent to which the Top Team shares the interpretation of the new culture.In any change initiative, the critical point is to give people the competencies they need to make change happen. This shou

44、ld start from the leadership team who needs to act as Role Models.Through a self assessment, we assisted members of the senior management team to build an individualized leadership development plan.36Leadership Development Plan“LeLearning and Development PlanLEARNING AND DEVELOPMENT provides the kno

45、wledge, skills and the information sharing forum to help employees change their behaviors to match the culture and vision. Tackles the areas needing development in the whole organization. The training or development might take several forms: project work, customer visits as well as classroom training.We identified the organization-wide gaps and a development plan to bridge them. We then monitored the impl