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1、cultural due diligence studywelcome agenda: 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 ind
2、ividual contributors in 22 countriesinputenvironmentresources historystrategyworkpeopleformalorganizationinformalorganizationcongruence modelindividualunitsystemoutputcultural due diligence study1. comparing and contrasting pre-merge hp and compaq2. definitions similarities - things that the people
3、in 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 comp
4、any talked much less about3. the findings reflect perceptionsinputenvironmentresources historystrategyworkpeopleformalorganizationinformalorganizationcongruence modelindividualunitsystemoutputinputhp on hpsimilarities proud about HP legacy industry consolidating disadvantaged in supply chain and ove
5、rhead costs good productsunique 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
6、 supply chain and overhead costs good productsunique commentary historically fast, nimble, and able to execute traditionally short-term focused fast growth through new business model redefined computing landscapeinputenvironmentresources historystrategyworkpeopleformalorganizationinformalorganizatio
7、ncongruence modelindividualunitsystemoutputstrategyhp 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
8、translated into something 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 fu
9、tureunique commentary tendency to be influenced more by major customer accounts than technological advancementsinputenvironmentresources historystrategyworkpeopleformalorganizationinformalorganizationcongruence modelindividualunitsystemoutputcompaq on compaqdifferences process seen as bureaucracy, a
10、version 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 achievedworkdifferenceshp on hp respect for process strong planning and financial processes w
11、ork 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 ownershi
12、p of workinputenvironmentresources historystrategyworkpeopleformalorganizationinformalorganizationcongruence modelindividualunitsystemoutputpeoplesimilaritieshp on hpcompaq on compaqsimilarities low credibility in leadershipdifferences leadership focused on relationships (how things get done)unique
13、commentary multicultural, diverse, dedicatedworkforce team-oriented losing the “family feeling” lower levels of management are informal; top management is more formal and removed recent changes led to low morale low credibility in leadershipdifferences leadership achievement-oriented, rugged individ
14、ualists (what gets done)unique commentary people are bright, committed, and workhard, long hours good interpersonal relationships learning happens on the job insufficient investment in training and development people do not feel empowered, except in fieldinputenvironmentresources historystrategywork
15、peopleformalorganizationinformalorganizationcongruence modelindividualunitsystemoutputformal organizationsimilaritieshp on hpcompaq on compaqsimilarities goals change too often; they are unclear, execution not enforced no consequences for not meeting objectives; performance metrics unclear or absent
16、, differ across “silos” front-end/back-end structure exacerbated 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
17、; but thoughtful and high involvement general perception that decisions are rarely made, but tend to stick once made goals change frequently and not synchronized between front-end and back-end organizations people are not held accountable; structure and measurement systems cloud accountability stron
18、g matrix management leading to fuzzy lines 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
19、 make a decision,iterative decisions, top-downinputenvironmentresources historystrategyworkpeopleformalorganizationinformalorganizationcongruence modelindividualunitsystemoutputinformal organizationhp on hpsimilarities strong sense of ethics strong customer-focus (make great products) team culture,
20、have to be part of the group getting 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 “si
21、lo mentality” failure deserves a second 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 t
22、o good/new ideas dont publicly embarrass people multiple subculturesdifferences conflict addressed directly/openly, aggressive, brash titles are referenced, abundant, hierarchicalunique commentary initiative, flexibility, “go for it” attitude arevalued relaxed/flex work environment; long working hou
23、rs11%17%19%32%8%19%19%21%22%31%concerns about the other companyHP is not very visible to customersHP doesnt make tough callsHP people seem resistant to changeHP is slow to move and is encumbered by too much process focusCompaq is not what it seemsCompaqs brash and bold style can be offensive to HP p
24、eopleCompaq has a command and control management styleCompaq seems to be taking overlike a reverse acquisitionCompaqs aggressive behavior violates HPs sense of integrityCompaqs business operations and performance have been poor0%5%10%15%20%25%30%35%HP InterviewsCompaq Interviewscultural due diligenc
25、e 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 honest, but be sensitive in what yo
26、u saycultural due diligence studyregion-specific findingsCultural Gaps12345Precedence. Looks to theorganizations rich history as a source of knowledge.Inquiry. Focuses on future possibilities and learn as they go.Internal Focus. Focuses mostly on improvement of internal processes and structures; has
27、 moderate awareness of our competitors.External Focus. Focuses mostly on pursuit of new markets and customers; is very much aware ofcompetitors and closely follows the moves they makeSystematic. Relies heavily on organized plans for our work. Work processes are clearly defined.Spontaneous. Relies on
28、 ability to respond to just-in-time opportunities; continually “turns on a dime” to meetdemands.Precision. Getting the job done right is more important than getting it done quickly, even though it maytake extra time.Speed. Getting the job done fast makes “roughly right” outcomes acceptable even thou
29、gh we maysacrifice discipline or rigor.Reflection. Values review of significant events; debrief events to share insights and best practices.Iteration. Values a “trial and error” approach; forges ahead without looking back.Compariso n of hp with Compaq - North AmericaCultural gap differences are stat
30、istically significant.Cultural SimilaritiesHPs AverageCompaqs AverageWinner Focused. Conflicts areresolved by debating until there is a winner.Issue Focused. Conflicts areresolved by exploring the merits of differing points of view.Competition. People tend to befocused on their own advancement and a
31、chievement.Cooperation. People tend to offerhelp and support to ensure others are successful.Dominance. Pursues growth throughproduct proliferation/line extensions and acquisitions.Value. Pursues growth throughproduct innovation and anticipation of emerging customer needs.Threat. Is anxious about th
32、eir future. Past successes are not sufficient to ensure continued performance.Opportunity. Is excited about their future. Track record has positioned them well for future success.Reaction. Changes in response to significant events.Initiation. Initiates change in anticipation of significant events.Cu
33、ltural Gaps12345Precedence. Looks to theorganizations rich history as a source of knowledge.Inquiry. Focuses on future possibilities and learn as they go.Internal Focus. Focuses mostly onimprovement of internal processes and structures; has moderate awareness of our competitors.External Focus. Focus
34、es mostly onpursuit of new markets and customers; is very much aware of competitors and closely follows themoves they makeSystematic. Relies heavily on organized plans for our work. Work processes are clearly defined.Spontaneous. Relies on ability to respond to just-in-time opportunities; continuall
35、y “turns on a dime” to meetdemands.Precision. Getting the job done right is more important than getting it done quickly, even though it maytake extra time.Speed. Getting the job done fast makes “roughly right” outcomes acceptable even though we maysacrifice discipline or rigor.Emphasis on Consistenc
36、y. Exceptions to policies and procedures are discouraged; generally it is betterto act as others do.Leveraging Differences. Policies and procedures are often tailored to fit the circumstances; generally it isacceptable to act in unique ways.Compariso n of hp with Compaq - Latin AmericaCultural gap d
37、ifferences are statistically significant.Cultural SimilaritiesHPs AverageCompaqs AverageWinner Focused. Conflicts areresolved by debating until there is a winner.Issue Focused. Conflicts areresolved by exploring the merits of differing points of view.Inspiring Performance. Praise andpublic acknowled
38、gement from leaders is an important part of how people arerecognized.Enticing performance. The use ofcontests, cash rewards, bonuses, etc., are important mechanisms forrecognition.Dominance. Pursues growth throughproduct proliferation/line extensions and acquisitions.Value. Pursues growth throughpro
39、duct innovation and anticipation of emerging customer needs.Threat. Is anxious about their future.Past successes are not sufficient to ensure continued performance.Opportunity. Is excited about their future. Track record has positioned them well for future success.Integrated. Change efforts attempt
40、toreach the entire organization simultaneouslyInsular. Change efforts focus ondiscreet segments or functions of the business.Cultural Gaps12345Precedence. Looks to theorganizations rich history as a source of knowledge.Inquiry. Focuses on future possibilities and learn as they go.Internal Focus. Foc
41、uses mostly on improvement of internal processes and structures; has moderate awareness of our competitors.External Focus. Focuses mostly on pursuit of new markets and customers; is very much aware ofcompetitors and closely follows the moves they makeCost. Is heavily focused onmaximizing efficiency,
42、 maintaining strong expense management, and cost reductionService. Is heavily focused onunderstanding and exceeding customer requirements through delivering great products & services.Precision. Getting the job done right is more important than gettingit done quickly, even though it may take extra ti
43、me.Speed. Getting the job done fast makes “roughly right” outcomesacceptable even though we may sacrifice discipline or rigor.Emphasis on Consistency. Exceptions to policies and procedures are discouraged; generally it is betterto act as others do.Leveraging Differences. Policies and procedures are
44、often tailored to fit the circumstances; generally it isacceptable to act in unique ways.Compariso n of hp with Compaq - EMEACultural gap differences are statistically significant.Cultural SimilaritiesHPs AverageCompaqs AverageIndependence. People tend to bemore comfortable working individually.Inte
45、rdependence. People tend to bemore comfortable working collaboratively.Targeted Focus. Pursues a vital few goals; typically headed in a clearly focused direction.Broad Reach. Pursues many goals simultaneously; is broad reaching and multi-focused.Dominance. Pursues growth throughproduct proliferation
46、/line extensions and acquisitions.Value. Pursues growth throughproduct innovation and anticipation of emerging customer needs.Designed. When implementingchange initiatives, involves only key people to coordinate/implement plans.Emergent. When implementingchange initiatives, involves many people to c
47、oordinate/implement plans.Integrated. Change efforts attempt toreach the entire organization simultaneouslyInsular. Change efforts focus ondiscreet segments or functions of the business.Cultural Gaps12345Precedence. Looks to theorganizations rich history as a source of knowledge.Inquiry. Focuses on
48、future possibilities and learn as they go.Internal Focus. Focuses mostly on improvement of internal processes and structures; has moderate awareness of our competitors.External Focus. Focuses mostly on pursuit of new markets and customers; is very much aware of competitors and closely follows themov
49、es they makeCost. Is heavily focused on maximizing efficiency, maintaining strong expense management, andcost reductionService. Is heavily focused on understanding and exceeding customer requirements throughdelivering great products & services.Threat. Is anxious about their future. Past successes ar
50、e not sufficient to ensure continued performance.Opportunity. Is excited about their future. Track record has positioned them well for future success.Replication. Takes solutions thatworked in one place and applies them in others; “safe bets” are encouraged.Experimentation. Consistently triesto find
51、 new ways of solving problems; risk taking is encouraged.Comparison of hp with Compaq - Asia PacificCultural gap differences are statistically significant.Cultural SimilaritiesHPs AverageCompaqs AverageIndependence. People tend to bemore comfortable working individually.Interdependence. People tend
52、to bemore comfortable working collaboratively.Inspiring Performance. Praise and public acknowledgement from leaders is an important part of how people are recognized.Enticing performance. The use of contests, cash rewards, bonuses, etc., are important mechanisms for recognition.Competition. People tend to befocused on their own advancement and achievement.Cooperation. People tend to offerhelp and support to ensure others are successful.Designed. When implement
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