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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 companies: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,individual,work,people,formalorganization,informalorganization,cultural due diligence study,1. comparing and contrasting pre-merge hp and compaq2. definitionssimilarities - things that the people in each company 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 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,individual,work,people,formalorganization,informalorganization,input,hp on hpsimilaritiesproud about HP legacyindustry consolidatingdisadvantaged in supply chain and overhead costsgood productsunique commentarypride in success linked to innovationtechnical/engineering heritagegood reputation with customerspower historically with the business and the back end,compaq on compaqsimilaritiesstrong brand, products and servicesindustry consolidatingdisadvantaged in supply chain and overhead costsgood productsunique commentaryhistorically fast, nimble, and able to executetraditionally short-term focusedfast growth through new business modelredefined computing landscape,congruence model,output,input,environment,resources,history,strategy,system,unit,individual,work,people,formalorganization,informalorganization,strategy,hp on 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 organizationstrategy has to be translated into something concrete,compaq 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 commentarytendency to be influenced more by major customer accounts than technological advancements,congruence model,output,input,environment,resources,history,strategy,system,unit,individual,work,people,formalorganization,informalorganization,work,hp on hpdifferencesrespect for processstrong planning and financial processeswork 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 of work,compaq 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 achieved,congruence model,output,input,environment,resources,history,strategy,system,unit,individual,work,people,formalorganization,informalorganization,people,hp on hpsimilaritieslow credibility in leadershipdifferencesleadership focused on 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 removedrecent changes led to low morale,compaq on compaqsimilaritieslow credibility in leadershipdifferencesleadership achievement-oriented, rugged individualists (what gets done)unique commentarypeople 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 field,congruence model,output,input,environment,resources,history,strategy,system,unit,individual,work,people,formalorganization,informalorganization,formal organization,hp 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 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 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 held accountable; structure and measurement systems cloud accountabilitystrong matrix management leading to fuzzy lines of accountabilitiesperformance 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-down,congruence model,output,input,environment,resources,history,strategy,system,unit,individual,work,people,formalorganization,informalorganization,informal organization,hp on hp as strengthsimilaritiesstrong sense 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 with dignitymultiple subculturesdifferencesconflict avoidance and over-compromise are normaltitles not referenced, egalitarianunique commentary“silo mentality”failure deserves a second chancediversity and people 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 rewardedopenness to good/new ideasdont publicly embarrass peoplemultiple subculturesdifferencesconflict 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 orientation,concerns about the other company,cultural due diligence study,advice to carly 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 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 Pacific,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 heard 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 others strengths, the potential for success is great,cultural due diligence study,cultural cornerstones,new hp cultural cornerstones (release 1.0 ),valuespassion for customerstrust & respectachievement & contributionuncompromising integrityteamwork meaningful innovationspeed & agility,profit,global citizenship,leadershipcapability,employeecommitment,corporateobjectives,customerloyalty,growth,marketleadership,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 were 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 lessons 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 v

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