culturalduediligencestudywelcomeagenda:presentationoffindingsq&asessionculturalduediligencestudypresentationoffindingsculturalduediligencestudydatacollectedfromaroundtheworldinbothcompanies:127individualexecutiveinterviews138focusgroupsspanning1,500managersandindividualcontributorsin22countriescongruencemodeloutputinputenvironmentresourceshistorystrategysystemunitindividualworkpeopleformalorganizationinformalorganization3culturalduediligencestudy1.comparingandcontrastingpre-mergehpandcompaq2.definitionssimilarities-thingsthatthepeopleineachcompanyperceivedaboutthemselvesthatmatchedtheothercompanydifferences-thingsthatthepeopleineachcompanyperceivedaboutthemselvesthatwereatoddswiththeothercompanyuniquecommentary-thingsthatpeopleineachcompanyexpressedveryoftenwhichthoseintheothercompanytalkedmuchlessabout3.thefindingsreflectperceptionscongruencemodeloutputinputenvironmentresourceshistorystrategysystemunitindividualworkpeopleformalorganizationinformalorganization5inputhponhpsimilaritiesproudaboutHPlegacyindustryconsolidatingdisadvantagedinsupplychainandoverheadcostsgoodproductsuniquecommentaryprideinsuccesslinkedtoinnovationtechnical/engineeringheritagegoodreputationwithcustomerspowerhistoricallywiththebusinessandthebackendcompaqoncompaqsimilaritiesstrongbrand,productsandservicesindustryconsolidatingdisadvantagedinsupplychainandoverheadcostsgoodproductsuniquecommentaryhistoricallyfast,nimble,andabletoexecutetraditionallyshort-termfocusedfastgrowththroughnewbusinessmodelredefinedcomputinglandscape6congruencemodeloutputinputenvironmentresourceshistorystrategysystemunitindividualworkpeopleformalorganizationinformalorganization7strategyhponhpsimilaritiestop-downstrategy;mid-managementnotinvolvedneedforplanningandexecutionprocessdifferences

strategyislong-termorienteduniquecommentarystrategyincreasinglyunclearasyougodowntheorganizationstrategyhastobetranslatedintosomethingconcretecompaqoncompaqsimilaritiesstrategycomesthroughatop-downprocesslittle/nostrategicprocessdifferencessusceptibletofrequentchangesindirectioncustomerfocusedwithashort-termorientationtowardthemarket;interfereswithinvesting/buildingforthefutureuniquecommentarytendencytobeinfluencedmorebymajorcustomeraccountsthantechnologicaladvancements8congruencemodeloutputinputenvironmentresourceshistorystrategysystemunitindividualworkpeopleformalorganizationinformalorganization9workhponhpdifferencesrespectforprocessstrongplanningandfinancialprocessesworkprocessisorganizationallybased,verticallystrong,workswelluniquecommentaryautonomyinmanagingone’sownworkisthenorm;accountabilityatindividualleveluppermanagementdoesnotseemtobeheldaccountableinthesamewayasotherspoorcross-functionalaccountabilitiesandownershipofworkcompaqoncompaqdifferencesprocessseenasbureaucracy,aversiontoprocesseslackofclear,disciplinedprocessesworkprocess:swatteamsuniquecommentarytechnologyisgreatinformationsystemsarenotintegratedmultitaskingisanormwork-lifebalanceisnotachieved10congruencemodeloutputinputenvironmentresourceshistorystrategysystemunitindividualworkpeopleformalorganizationinformalorganization11peoplehponhpsimilaritieslowcredibilityinleadershipdifferencesleadershipfocusedonrelationships(howthingsgetdone)uniquecommentarymulticultural,diverse,dedicatedworkforceteam-orientedlosingthe“familyfeeling”lowerlevelsofmanagementareinformal;topmanagementismoreformalandremovedrecentchangesledtolowmoralecompaqoncompaqsimilaritieslowcredibilityinleadershipdifferencesleadershipachievement-oriented,ruggedindividualists(whatgetsdone)uniquecommentarypeoplearebright,committed,andworkhard,longhoursgoodinterpersonalrelationshipslearninghappensonthejobinsufficientinvestmentintraininganddevelopmentpeopledonotfeelempowered,exceptinfield12congruencemodeloutputinputenvironmentresourceshistorystrategysystemunitindividualworkpeopleformalorganizationinformalorganization13formalorganizationhponhpsimilaritiesgoalschangetoooften;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-down14congruencemodeloutputinputenvironmentresourceshistorystrategysystemunitindividualworkpeopleformalorganizationinformalorganization15informalorganizationhponhpasstrengthsimilaritiesstrongsenseofethicsstrongcustomer-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;longworkinghourshereandnoworientation16concernsabouttheothercompany17culturalduediligencestudyadvicetocarly&michaelfrominterviewsandfocusgroups:beinclusivedefineyourworkandrolesdefine/communicatewhatyouwantthenewcompanytobebeboldclarifyrolesandorganizationstructuretakeactionquicklycontinuetocommunicatealot;behonest,butbesensitiveinwhatyousayculturalduediligencestudyregion-specificfindingsComparisonofhpwithCompaq--NorthAmericaCulturalgapdifferencesarestatisticallysignificant.Compaq’sAverageHP’sAverage20ComparisonofhpwithCompaq--LatinAmericaCulturalgapdifferencesarestatisticallysignificant.Compaq’sAverageHP’sAverage21ComparisonofhpwithCompaq--EMEACulturalgapdifferencesarestatisticallysignificant.Compaq’sAverageHP’sAverage22ComparisonofhpwithCompaq--AsiaPacificCulturalgapdifferencesarestatisticallysignificant.Compaq’sAverageHP’sAverage23ComparisonofhpwithCompaq--EnterprisewideCulturalgapdifferencesarestatisticallysignificant.Compaq’sAverageHP’sAverage24culturalduediligencestudyinsummary...wealsoheardpeoplesaythat:bothcompanycultureswereintransitionbeforethemergerthedirectionthateachcultureneededtotakewas,actually,toadoptthestrengthsoftheotherso,ifyouintegratewell,buildingoneachother’sstrengths,thepotentialforsuccessisgreatculturalduediligencestudyculturalcornerstonesnewhpculturalcornerstones 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valuespassionforcustomerstrust&respectachievement&contributionuncompromisingintegrityteamworkmeaningfulinnovationspeed&agilityprofitglobal

citizenshipleadershipcapabilityemployeecommitmentcorporate

objectivescustomerloyaltygrowthmarketleadershipmetrics&

rewardsstructure&processesstrategies

behaviorspolicies&practices27lessonslearnedfirst,thoughtherewereimportantdifferencesbetweenthepre-mergehpandcompaqorganizations,therewereagreatmanysimilarities;and,therewereagreatmanypositivecharacteristicsthatbothcompaniesshared(forexample,theemphasisonteamwork)tominimizeunproductiveconflictmovingforward,thereareseverallessonsorimplicationsfromthisstudyforhowweworktogether:focusandbuilduponourcommonstrengthscometoagreementabouttheappropriatetimehorizon(long-termvs.short-term)foranybusinessstrategyorsetofstrategiesclarifythemeaningoftermsorlanguagethatpeopleareusingbeforemakingjudgmentsaboutothers--twopeoplemaybethinkingaboutdifferentthingswhiletalkingaboutthesamesubjectagreeupfrontonanapproachtodecisionmakingtoensurethateveryoneisonthesamepagebeforeentertainingdiscussionaboutthesubjectmattertakepeople’sneedsandexperience(e.g.,comfortdealingwithconflict,orientationtohierarchy)intoaccountinhowyouapproachproblemsandinhowyouinteracttosolveproblemswheregapsorsimilaritiesareconsistentacrosstheenterprise,usethesameapproachtoclosingthegapsandbuildinguponpositivesimilarities28cultur