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culturalduediligencestudywelcomeagenda:presentationoffindingsq&asession
culturalduediligencestudypresentationoffindings
culturalduediligencestudydatacollectedfromaroundtheworldinbothcompanies:127individualexecutiveinterviews138focusgroupsspanning1,500managersandindividualcontributorsin22countries
congruencemodeloutputinputenvironmentresourceshistorystrategysystemunitindividualworkpeopleformalorganizationinformalorganization3
culturalduediligencestudy1.comparingandcontrastingpre-mergehpandcompaq2.definitionssimilarities-thingsthatthepeopleineachcompanyperceivedaboutthemselvesthatmatchedtheothercompanydifferences-thingsthatthepeopleineachcompanyperceivedaboutthemselvesthatwereatoddswiththeothercompanyuniquecommentary-thingsthatpeopleineachcompanyexpressedveryoftenwhichthoseintheothercompanytalkedmuchlessabout3.thefindingsreflectperceptions
congruencemodeloutputinputenvironmentresourceshistorystrategysystemunitindividualworkpeopleformalorganizationinformalorganization5
inputhponhpsimilaritiesproudaboutHPlegacyindustryconsolidatingdisadvantagedinsupplychainandoverheadcostsgoodproductsuniquecommentaryprideinsuccesslinkedtoinnovationtechnical/engineeringheritagegoodreputationwithcustomerspowerhistoricallywiththebusinessandthebackendcompaqoncompaqsimilaritiesstrongbrand,productsandservicesindustryconsolidatingdisadvantagedinsupplychainandoverheadcostsgoodproductsuniquecommentaryhistoricallyfast,nimble,andabletoexecutetraditionallyshort-termfocusedfastgrowththroughnewbusinessmodelredefinedcomputinglandscape6
congruencemodeloutputinputenvironmentresourceshistorystrategysystemunitindividualworkpeopleformalorganizationinformalorganization7
strategyhponhpsimilaritiestop-downstrategy;mid-managementnotinvolvedneedforplanningandexecutionprocessdifferencesstrategyislong-termorienteduniquecommentarystrategyincreasinglyunclearasyougodowntheorganizationstrategyhastobetranslatedintosomethingconcretecompaqoncompaqsimilaritiesstrategycomesthroughatop-downprocesslittle/nostrategicprocessdifferencessusceptibletofrequentchangesindirectioncustomerfocusedwithashort-termorientationtowardthemarket;interfereswithinvesting/buildingforthefutureuniquecommentarytendencytobeinfluencedmorebymajorcustomeraccountsthantechnologicaladvancements8
congruencemodeloutputinputenvironmentresourceshistorystrategysystemunitindividualworkpeopleformalorganizationinformalorganization9
workhponhpdifferencesrespectforprocessstrongplanningandfinancialprocessesworkprocessisorganizationallybased,verticallystrong,workswelluniquecommentaryautonomyinmanagingone’sownworkisthenorm;accountabilityatindividualleveluppermanagementdoesnotseemtobeheldaccountableinthesamewayasotherspoorcross-functionalaccountabilitiesandownershipofworkcompaqoncompaqdifferencesprocessseenasbureaucracy,aversiontoprocesseslackofclear,disciplinedprocessesworkprocess:swatteamsuniquecommentarytechnologyisgreatinformationsystemsarenotintegratedmultitaskingisanormwork-lifebalanceisnotachieved10
congruencemodeloutputinputenvironmentresourceshistorystrategysystemunitindividualworkpeopleformalorganizationinformalorganization11
peoplehponhpsimilaritieslowcredibilityinleadershipdifferencesleadershipfocusedonrelationships(howthingsgetdone)uniquecommentarymulticultural,diverse,dedicatedworkforceteam-orientedlosingthe“familyfeeling”lowerlevelsofmanagementareinformal;topmanagementismoreformalandremovedrecentchangesledtolowmoralecompaqoncompaqsimilaritieslowcredibilityinleadershipdifferencesleadershipachievement-oriented,ruggedindividualists(whatgetsdone)uniquecommentarypeoplearebright,committed,andworkhard,longhoursgoodinterpersonalrelationshipslearninghappensonthejobinsufficientinvestmentintraininganddevelopmentpeopledonotfeelempowered,exceptinfield12
congruencemodeloutputinputenvironmentresourceshistorystrategysystemunitindividualworkpeopleformalorganizationinformalorganization13
formalorganizationhponhpsimilaritiesgoalschangetoooften;theyareunclear,executionnotenforcednoconsequencesfornotmeetingobjectives;performancemetricsunclearorabsent,differacross“silos”front-end/back-endstructureexacerbatedproblemswithaccountabilityhpishorizontallychallengedmorepowermovingtothefront-endorganizationhpisbecomingmorecentralizeddifferencesnocommonprocessfordecisionmaking;verytop-down,slow,longdecisioncycletimes;butthoughtfulandhighinvolvementgeneralperceptionthatdecisionsarerarelymade,buttendtostickoncemadecompaqoncompaqsimilaritiesgoalschangefrequentlyandnotsynchronizedbetweenfront-endandback-endorganizationspeoplearenotheldaccountable;structureandmeasurementsystemscloudaccountabilitystrongmatrixmanagementleadingtofuzzylinesofaccountabilitiesperformancemanagementinconsistent,generallypoorplanningandcontrolcross-organizationalcollaborationdifficultcountrymanagersarekingsmanythingsareverycentralizeddifferencesdecisionsmadequicklyalotof“checkingin”tomakeadecision,iterativedecisions,top-down14
congruencemodeloutputinputenvironmentresourceshistorystrategysystemunitindividualworkpeopleformalorganizationinformalorganization15
informalorganizationhponhpasstrengthsimilaritiesstrongsenseofethicsstrongcustomer-focus(makegreatproducts)teamculture,havetobepartofthegroupgettingresultsisrewarded,sometimeseffortwithoutaresultgetsrewardedhavingbignewideasisvaluedtreatpeoplewithdignitymultiplesubculturesdifferencesconflictavoidanceandover-compromisearenormaltitlesnotreferenced,egalitarianuniquecommentary“silomentality”failuredeservesasecondchancediversityandpeoplearevaluedcompaqoncompaqsimilaritiesethicalbehaviorisenforcedstrongcustomerorientation(makewhattheywant)teamworkisvaluedhighlyresults/bottom-linefocused,sometimeseffortwithoutaresultsgetsrewardedopennesstogood/newideasdon’tpubliclyembarrasspeoplemultiplesubculturesdifferencesconflictaddresseddirectly/openly,aggressive,brashtitlesarereferenced,abundant,hierarchicaluniquecommentaryinitiative,flexibility,“goforit”attitudearevaluedrelaxed/flexworkenvironment;longworkinghourshereandnoworientation16
concernsabouttheothercompany17
culturalduediligencestudyadvicetocarly&michaelfrominterviewsandfocusgroups:beinclusivedefineyourworkandrolesdefine/communicatewhatyouwantthenewcompanytobebeboldclarifyrolesandorganizationstructuretakeactionquicklycontinuetocommunicatealot;behonest,butbesensitiveinwhatyousay
culturalduediligencestudyregion-specificfindings
ComparisonofhpwithCompaq--NorthAmericaCulturalgapdifferencesarestatisticallysignificant.Compaq’sAverageHP’sAverage20
ComparisonofhpwithCompaq--LatinAmericaCulturalgapdifferencesarestatisticallysignificant.Compaq’sAverageHP’sAverage21
ComparisonofhpwithCompaq--EMEACulturalgapdifferencesarestatisticallysignificant.Compaq’sAverageHP’sAverage22
ComparisonofhpwithCompaq--AsiaPacificCulturalgapdifferencesarestatisticallysignificant.Compaq’sAverageHP’sAverage23
ComparisonofhpwithCompaq--EnterprisewideCulturalgapdifferencesarestatisticallysignificant.Compaq’sAverageHP’sAverage24
culturalduediligencestudyinsummary...wealsoheardpeoplesaythat:bothcompanycultureswereintransitionbeforethemergerthedirectionthateachcultureneededtotakewas,actually,toadoptthestrengthsoftheotherso,ifyouintegratewell,buildingoneachother’sstrengths,thepotentialforsuccessisgreat
culturalduediligencestudyculturalcornerstones
newhpculturalcornerstones(release1.0)valuespassionforcustomerstrust&respectachievement&contributionuncompromisingintegrityteamworkmeaningfulinnovationspeed&agilityprofitglobalcitizenshipleadershipcapabilityemployeecommitmentcorporateobjectivescustomerloyaltygrowthmarketleadershipmetrics&rewardsstructure&processesstrategiesbehaviorspolicies&practices27
lessonslearnedfirst,thoughtherewereimportantdifferencesbetweenthepre-mergehpandcompaqorganizations,therewereagreatmanysimilarities;and,therewereagreatmanypositivecharacteristicsthatbothcompaniesshared(forexample,theemphasisonteamwork)tominimizeunproductiveconflictmovingforward,thereareseverallessonsorimplicationsfromthisstudyforhowweworktogether:focusandbuilduponourcommonstrengthscometoagreementabouttheappropriatetimehorizon(long-termvs.short-term)foranybusinessstrategyorsetofstrategiesclarifythemeaningoftermsorlanguagethatpeopleareusingbeforemakingjudgmentsaboutothers--twopeoplemaybethinkingaboutdifferentthingswhiletalkingaboutthesamesubjectagreeupfrontonanapproachtodecisionmakingtoensurethateveryoneisonthesamepagebeforeentertainingdiscussionaboutthesubjectmattertakepeople’sneedsandexperience(e.g.,comfortdealingwithconflict,orientationtohierarchy)intoaccountinhowyouapproachproblemsandinhowyouinteracttosolveproblemswheregapsorsimilaritiesareconsistentacrosstheenterprise,usethesameapproachtoclosingthegapsandbuildinguponpositivesimilarities28
culturalduediligencestudyTheresultsoftheCDDwillbepostedonthenewhpwaywebpage.SeethefollowingurlformoreinformationonCDDandtheculturalcornerstonesofthenewhp:http://hpnow.hp.com/vision-strategy/newhpway
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