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1、cultural due diligence study,welcomeagenda:presentation of findingsq&a session,cultural due diligence study,presentation of findings,cultural due diligence study,data collected from around the world in both compan
2、ies:127 individual executive interviews138 focus groups spanning 1,500 managers and individual contributors in 22 countries,congruence model,,,,output,,input,,,environment,resources,history,strategy,system,unit,individ
3、ual,,work,,people,,formalorganization,,informalorganization,,,,,,,,,,cultural due diligence study,1. comparing and contrasting pre-merge hp and compaq2. definitionssimilarities - things that the people in each compan
4、y perceived 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
5、in each company expressed very often which those in the other company talked much less about3. the findings reflect perceptions,congruence model,,,,output,,input,,,environment,resources,history,strategy,system,unit,indi
6、vidual,,work,,people,,formalorganization,,informalorganization,,,,,,,,,,input,hp on hpsimilaritiesproud about HP legacyindustry consolidatingdisadvantaged in supply chain and overhead costsgood productsunique com
7、mentarypride in success linked to innovationtechnical/engineering heritagegood reputation with customerspower historically with the business and the back end,compaq on compaqsimilaritiesstrong brand, products and s
8、ervicesindustry consolidatingdisadvantaged in supply chain and overhead costsgood productsunique commentaryhistorically fast, nimble, and able to executetraditionally short-term focusedfast growth through new busi
9、ness modelredefined computing landscape,congruence model,,,,output,,input,,,environment,resources,history,strategy,system,unit,individual,,work,,people,,formalorganization,,informalorganization,,,,,,,,,,strategy,hp on
10、 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 organ
11、izationstrategy has to be translated into something concrete,compaq on compaqsimilaritiesstrategy comes through a top-down processlittle/no strategic processdifferencessusceptible to frequent changes in directionc
12、ustomer focused with a short-term orientation toward the market; interferes with investing/building for the futureunique commentarytendency to be influenced more by major customer accounts than technological advancemen
13、ts,congruence model,,,,output,,input,,,environment,resources,history,strategy,system,unit,individual,,work,,people,,formalorganization,,informalorganization,,,,,,,,,,work,hp on hpdifferencesrespect for processstrong
14、 planning and financial processeswork process is organizationally based, vertically strong, works wellunique commentaryautonomy in managing one’s own work is the norm; accountability at individual levelupper manageme
15、nt does not seem to be held accountable in the same way as otherspoor cross-functional accountabilities and ownership of work,compaq on compaqdifferencesprocess seen as bureaucracy, aversion to processeslack of clear
16、, disciplined processeswork process: swat teamsunique commentarytechnology is greatinformation systems are not integratedmultitasking is a normwork-life balance is not achieved,congruence model,,,,output,,input,,,e
17、nvironment,resources,history,strategy,system,unit,individual,,work,,people,,formalorganization,,informalorganization,,,,,,,,,,people,hp on hpsimilaritieslow credibility in leadershipdifferencesleadership focused on
18、 relationships (how things get done)unique commentarymulticultural, diverse, dedicated workforceteam-orientedlosing the “family feeling”lower levels of management are informal; top management is more formal and remo
19、vedrecent changes led to low morale,compaq on compaqsimilaritieslow credibility in leadershipdifferencesleadership achievement-oriented, rugged individualists (what gets done)unique commentarypeople are bright, co
20、mmitted, and work hard, long hoursgood interpersonal relationshipslearning happens on the jobinsufficient investment in training and developmentpeople do not feel empowered, except in field,congruence model,,,,output
21、,,input,,,environment,resources,history,strategy,system,unit,individual,,work,,people,,formalorganization,,informalorganization,,,,,,,,,,formal organization,hp on hpsimilaritiesgoals change too often; they are unclea
22、r, 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
23、 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 invol
24、vementgeneral perception that decisions are rarely made, but tend to stick once made,compaq on compaqsimilaritiesgoals change frequently and not synchronized between front-end and back-end organizationspeople are not
25、 held accountable; structure and measurement systems cloud accountabilitystrong matrix management leading to fuzzy lines of accountabilitiesperformance management inconsistent, generally poor planning and controlcross
26、-organizational collaboration difficultcountry managers are kingsmany things are very centralizeddifferencesdecisions made quicklya lot of “checking in” to make a decision, iterative decisions, top-down,congruence m
27、odel,,,,output,,input,,,environment,resources,history,strategy,system,unit,individual,,work,,people,,formalorganization,,informalorganization,,,,,,,,,,informal organization,hp on hp as strengthsimilaritiesstrong sen
28、se 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 valuedtreat people
29、 with dignitymultiple subculturesdifferencesconflict avoidance and over-compromise are normaltitles not referenced, egalitarianunique commentary“silo mentality”failure deserves a second chancediversity and people
30、 are valued,compaq on compaqsimilaritiesethical behavior is enforcedstrong customer orientation (make what they want)teamwork is valuedhighly results/bottom-line focused, sometimes effort without a results gets rewa
31、rdedopenness to good/new ideasdon’t publicly embarrass peoplemultiple subculturesdifferencesconflict addressed directly/openly, aggressive, brashtitles are referenced, abundant, hierarchicalunique commentaryiniti
32、ative, flexibility, “go for it” attitude are valuedrelaxed/flex work environment; long working hourshere and now orientation,concerns about the other company,cultural due diligence study,advice to carly & michael f
33、rom interviews and focus groups:be inclusivedefine your work and rolesdefine/communicate what you want the new company to bebe boldclarify roles and organization structuretake action quicklycontinue to communicate
34、 a lot; be honest, but be sensitive in what you say,cultural due diligence study,region-specific findings,Comparison of hp with Compaq --North America,Cultural gap differences are statistically significant.,Comparison of
35、 hp with Compaq --Latin America,Cultural gap differences are statistically significant.,Comparison of hp with Compaq --EMEA,Cultural gap differences are statistically significant.,Comparison of hp with Compaq --Asia Paci
36、fic,Cultural gap differences are statistically significant.,Comparison of hp with Compaq --Enterprise wide,Cultural gap differences are statistically significant.,cultural due diligence study,in summary . . .we also hea
37、rd 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
38、 other’s strengths, the potential for success is great,cultural due diligence study,cultural cornerstones,new hp cultural cornerstones (release 1.0 ),,,valuespassion for customerstrust & respectachievement &
39、 contributionuncompromising integrityteamwork meaningful innovationspeed & agility,profit,global citizenship,leadershipcapability,employeecommitment,corporateobjectives,customerloyalty,growth,marketleadersh
40、ip,metrics & rewards,structure & processes,strategies,behaviors,policies &practices,lessons learned,first, though there were important differences between the pre-merge hp and compaq organizations, there we
41、re a great many similarities; and, there were a great many positive characteristics that both companies shared (for example, the emphasis on teamwork)to minimize unproductive conflict moving forward, there are several l
42、essons or implications from this study for how we work together:focus and build upon our common strengthscome to agreement about the appropriate time horizon (long-term vs. short-term) for any business strategy or set
43、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 o
44、n an approach to decision making to ensure that everyone is on the same page before entertaining discussion about the subject mattertake people’s needs and experience (e.g., comfort dealing with conflict, orientation to
45、 hierarchy) into account in how you approach problems and in how you interact to solve problemswhere gaps or similarities are consistent across the enterprise, use the same approach to closing the gaps and building upon
46、 positive similarities,cultural due diligence study,The 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://h
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