華信惠悅咨詢公司TheImportanceofCultppt課件

1、14 March 2002, ShanghaiKwan Chee WeiDirector Human Capital GroupWatson Wyatt SingaporeThe Importance of Cultural Integration in Mergers and Acquisitions Agenda M & A Statistics A Case Study WWs Approach to Cultural IntegrationWhat is Culture?Q & A 2AgendaM & A Statistics A Case Study WWs Approach to

2、 Cultural IntegrationWhat is Culture?Q & A 3Cultural & People Issues Often Present the Biggest Challenges“The hard stuff is easy - its the soft stuff thats so hard to change.-Frederick SmithCEO, Federal Express4Watson Wyatt M & A Survey 1998(190 CEOs, CFO, Top Executives) 75% are clearly disappointi

3、ng or outright failuresSource: Watson Wyatt Worldwide M&A Survey, November 199850% suffer an overall drop-off in productivity in first 4-8 months47% of acquired company executives leave within the first year; 75% within the first three years“People problems are cited as the top integration failure f

4、actor by a sample of 45 CFOs from Fortune 500 companies who have recently merged/acquiredOnly 23% of all acquisitions earn their cost of capitalOn average, management grade the financial performance of their alliances as a “C minus (on a scale of A to E)5Corporate culture is identified as one of the

5、 most important integration issues Source: Watson Wyatt Worldwide M&A Survey, November 1998Activities required for “successful integrationDownsizingRedeployment of workersRecruitment of new staffRetraining workforceAlignment of comp & ben progLabor relationsManaging resistanceIntegration of corporat

6、e culturesRetention of key managersRetention of key talentCommunication37%40%59%57%36%63%78%88%91%90%010203040506070809010036%6Cultural incompatibility is the biggest problem, yet results indicate that it is the area least likely researched during due diligence.46%47%54%56%72%72%82%86%01020304050607

7、080Organizational culture and dynamics of changeWorkforce potentialHR policy mattersMajor shareholdersManagement capabilities and willingness to cooperateFinancial aspects of HR functionMarket share, distributionHard assets90100Technological and business competencies75%Percentage of companies citing

8、 the type of information gathered during due diligenceSource: Watson Wyatt Worldwide M&A Survey, November 19987Reasons for successful integrationSource: Watson Wyatt Worldwide M&A Survey, November 1998Percentage of companies citing reason for success8%41%31%37%52%70%Shared responsibility of costs in

9、volvedEarly mgt of “What will happen to me? employee issuesCultural compatibilityMutual agreement of road map by partnersExpedient integrationWell planned communication throughout the deal processLeadership010203040506070809010035%8Additional M & A Statistics 1992 (Coopers & Lybrand) :- In 100 faile

10、d or troubled mergers, 85% of executives who were surveyed said the major problem was differences in management style and practices.1996 (British Institute of Management) :- reported the difficulties involved in merging two cultures to be a major factor in M & A failures.1997 (A.T Kearney) :- review

11、ed 155 M & A deals and determined most failures to be people-related.Hewitt Associates - 69% of respondents in 162 organizations involved in M & A reported the top challenge to be integrating two organizational cultures. 9How integration is handled will make the difference between success or failure

12、 .Earlier realization of financial “deal goals (e.g. cost synergy, strategic initiatives)Protect productivityMaintain customer focusSmoother transitionEmployees are focused on their jobs and not on personal issues10Organizational Effectiveness Levers CareerDevelopment PerformanceManagementStaffingCo

13、mpensation,Benefits &RewardsEmployeeCommunication OrganizationDesign & StructureBusinessStrategy & AlignedCulture LeadershipEffectiveness11AgendaM & A Statistics A Case Study WWs Approach to Cultural IntegrationWhat is Culture?Q & A 12What is culture?Definition of Culture:The attitudes and benefits

14、about something that are shared by a particular group of a people or in a particular organization (Longman)The set of important assumptions that members of a community share in common (e.g Schein)Simply put :“ Corporate Culture is the way you do things in your organization13Reflects “What is tangibl

15、e, e.g. Organisational structure & processes Policies & procedures Physical environmentReflects the “Way we do things, e.g. Degrees of collaboration Decision-making patterns Approaches to process improvementComponents of CultureValues have little meaning unless they bring about specific behaviors .V

16、ISIBLECore ValuesBehaviourINVISIBLEattitude14Implementation PlanImplementation PlanImplementation PlanThe implementation plan will encompass initiatives to create and support these behaviors.Core ValuesBehaviourThe best way to achieve culture change is to focus on desired behaviors .15AgendaM & A St

17、atistics A Case Study WWs Approach to Cultural IntegrationWhat is Culture?Q & A 16Our Approach to Cultural IntegrationPerformGapAnalysisDesign DesiredCulture-Top Team WorkshopValidation/ OwnershipCustomer StrategyAssess Current Culture-Interviews Focus GroupsCulture AuditBusiness ObjectivesDISCOVERD

18、efiningOrganizationalCultureImplement Culture Change Programs-Training Org. Dev. CommunicationMeasurementDELIVERReinforcingOrganizationalCultureKnowledge sharing, involvement, and communicationsDevelop Culture Change Programs-Leadership Development,Culture Change Teams & Learning & DevelopmentINVENT

19、DevelopingOrganizationalCulture17Agenda M & A Statistics A Case Study WWs Approach to Cultural IntegrationWhat is Culture?Q & A 18A Case Study: Background InformationTwo organizations merged to form a new entityBoth organizations existed as government statutory boards with regulatory functionsNew co

20、mpany got listed on the local stock exchange with a clear bottom-line objectiveNew company aims to be performance-driven, improve competitiveness and grow through strategic partnerships19Interviews Focus GroupsManagement WorkshopBest Practice ResearchInterviewsFocus GroupsCorporate Culture AuditCurr

21、ent Culture List of Desired Values Behaviour IndicatorsCulture Development Programs Desired CultureThe Process of Culture Development 20Mission# 1 in the regionCustomer FocusedProfit DrivenInternal EnvironmentProfessional and flexibleBetter decision making processClear Performance - based rewardsMor

22、e Inter-department collaborationTailored employee communicationStrategyBottom-Line orientationProfitable products and servicesCost efficiencyMarket confidenceExpansion into other marketsStrategic alliancesService efficiencyTechnology is importantExternal EnvironmentIntense competitionIncreasing cust

23、omer demands and sophisticationLeveraging leading-edge technologyCore Values?What is the Current Culture?21Defining the new Core ValuesStrategyMissionInternal EnvironmentExternal EnvironmentCore Values?22Core Values:Customer service qualityBottom-line drivenDefining the Core Values# 1 in the regionC

24、ustomer focusedProfit drivenMissionCore ValuesMissionStrategyExternal EnvironmentInternal Environment23Core Values:Bottom-line drivenObjectivity and integrityProduct innovationCustomer service qualityTechnology leveragedDefining the Core ValuesBottom-line orientationProfitable products and servicesC

25、ost efficiencyMarket confidenceExpansion into other marketsStrategic alliancesService efficiencyTechnology is importantStrategyCore ValuesMissionStrategyExternal EnvironmentInternal Environment24Intense competitionIncreasing customer demands and sophisticationLeveraging leading-edge technologyCustom

26、er service qualitySpeed and efficiencyFlexibilityTechnology leveragedCore Values:External EnvironmentDefining the Core ValuesCore ValuesMissionStrategyExternal EnvironmentInternal Environment25Professional and flexibleBetter decision making processClear performance - based rewardsMore inter-departme

27、nt collaborationTailored employee communicationInternal EnvironmentDefining the Core ValuesCore Values:Core Values:Employee of choice Efficient decision making - initiative, flexibilityObjectivity and integrityOpen communicationTeamworkCore ValuesMissionStrategyExternal EnvironmentInternal Environme

28、nt26MissionCustomer service qualityBottom-line drivenNew set of Core ValuesInternal EnvironmentEmployer of choiceEfficient decision making - initiative, flexibilityObjectivity and integrityOpen communicationTeamworkStrategyBottom-line drivenObjectivity and integrityProduct innovationCustomer service

29、 quality Technology leveragedExternal EnvironmentCustomer service qualitySpeed and efficiencyFlexibilityTechnology leveragedNew Set of Core Values27New Core ValuesOrganisationBottom-line drivenEmployee orientedTeamwork Technology leveragedCustomers / StakeholdersCustomer service quality Objectivity

30、and integrityProduct innovation28Interviews Focus GroupsManagement WorkshopBest Practice ResearchInterviewsFocus GroupsCorporate Culture AuditCurrent Culture List of Desired Values Behaviour IndicatorsCulture Development Programs Desired CultureThe Process of Culture Development 29Reinforcing New Cu

31、ltureDesired CultureCommunicationPerformance ManagementCulture Development InitiativesPerformance Mgmt PlanTotal Rewards StrategyCulture Development TeamLearning& Development PlanCommunication PlanLeadership Development Plan30Employee acceptance and support was enhanced through a comprehensive commu

32、nication planKnowledge sharing, involvement, and communications Phase ScopePurposePhase 1Awareness BuildingThis is what is happeningCompany-wide* Link change initiatives with strategic plans* Give specific information about the process.* Announce senior managements involvementPhase 2Program StatusTh

33、is is where we are going.Company-wide* Demonstrate senior management commitment.* Identify managers and employees issues.* Gain information from pilot tests.* Provide the big picture.Phase 3Roll-OutThis is what it means to you.Program Specific* Provide specific information on the changes being made

34、and how they will affect people.* Provide training in new roles skills and methods.Phase 4Follow-UpThis is how we will make it work.Team Specific* Listen to and act on managers and employees needs to implement changes.* Refine changes to ensure success.31Communication PlanCommunication of Core Value

35、s to ALL employeesCore Values statementVideo from CEODivisional briefingsIncorporate into orientation for new staffIncorporate into Performance Management training via competency model32Performance ManagementUsing the Balanced Scorecard approach, we helped develop the organisation scorecarddevelop t

36、he departmental scorecardsdefine the performance targets Developed a competency model based on Core ValuesPerformance management training for all employees33Recognition ProgramsBonuses/IncentivesIndividual MeritBase PayBenefitsPerformanceResults-RelatedProgramsCoreProgramsStockTotal Rewards Strategy

37、34Culture Development InitiativesLearning & Development PlanIdentify organisational development needsDevelop learning and development plans that link to business and strategic objectivesLeadership Development PlanConduct one-to-one sessions with management team members to develop individual leadersh

38、ip development plan Culture Development TeamsBuild cross-functional teams WW facilitates the interactions, planning and decision making of the teamsEncourage and appraise the demonstration of desired behaviours35Leadership Development Plan“Leaders walk the talk.The degree to which the TopTeam accept

39、s the change plan as the best one under the circumstancesThe degree to which the TopTeam accepts the new culture as being in line with their personal goals.The competence of the organization, in terms of abilities, systems, infrastructure in achieving the change plan.The extent to which the Top Team

40、 shares the interpretation of the new culture.In any change initiative, the critical point is to give people the competencies they need to make change happen. This should start from the leadership team who needs to act as Role Models.Through a self assessment, we assisted members of the senior manag

41、ement team to build an individualized leadership development plan.36Learning and Development PlanLEARNING AND DEVELOPMENT provides the knowledge, skills and the information sharing forum to help employees change their behaviors to match the culture and vision. Tackles the areas needing development in the whole organization. The training or development might take several forms: project work, customer visits as well as classroom training.We identified the organization-wide gaps and a development plan to bridge them. We then monitored