cultural due diligence study welcome agenda: • presentation of findings • q&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 interviews • 138 focus groups spanning 1,500 managers and individual contributors in 22 countries congruence model informal organization input environment resources strategy output system work formal organization history unit individual people 1. comparing and contrasting pre-merge hp and compaq 2. definitions cultural due diligence study • similarities - things that the people 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 company talked much less about 3. the findings reflect perceptions congruence model informal organization input environment resources strategy output system work formal organization history unit individual people input hp on hp compaq on compaq similarities similarities •proud about HP legacy •strong brand, products and services •industry consolidating •industry consolidating •disadvantaged in supply chain and overhead costs •disadvantaged in supply chain and overhead costs •good products •good products unique commentary unique commentary •pride in success linked to innovation •technical/engineering heritage •good reputation with customers •power historically with the business and the back end •historically fast, nimble, and able to execute •traditionally short-term focused •fast growth through new business model •redefined computing landscape congruence model informal organization input environment resources strategy output system work formal organization history unit individual people strategy hp on hp similarities •top-down strategy; mid-management not involved •need for planning and execution process •differences •strategy is long-term oriented unique commentary •strategy increasingly unclear as you go down the organization •strategy has to be translated into something concrete compaq on compaq similarities •strategy comes through a top-down process •little/no strategic process differences •susceptible to frequent changes in direction •customer focused with a short-term orientation toward the market; interferes with investing/building for the future unique commentary •tendency to be influenced more by major customer accounts than technological advancements congruence model informal organization input environment resources strategy output system work formal organization history unit individual people work hp on hp differences •respect for process •strong planning and financial processes •work process is organizationally based, vertically strong, works well unique commentary •autonomy in managing one’s 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 ownership of work compaq on compaq differences •process seen as bureaucracy, aversion to processes •lack of clear, disciplined processes •work process: swat teams unique commentary •technology is great •information systems are not integrated •multitasking is a norm •work-life balance is not achieved congruence model informal organization input environment resources strategy output system work formal organization history unit individual people people hp on hp compaq on compaq similarities similarities •low credibility in leadership •low credibility in leadership differences differences •leadership focused on relationships (how things get done) unique commentary •multicultural, diverse, dedicated workforce •leadership achievement-oriented, rugged individualists (what gets done) unique commentary •people are bright, committed, and work hard, long hours •team-oriented •good interpersonal relationships •losing the “family feeling” •learning happens on the job •lower levels of management are informal; top management is more formal and removed •recent changes led to low morale •insufficient investment in training and development •people do not feel empowered, except in field congruence model informal organization