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culturalduediligencestudywelcomeagenda:presentationoffindingsq&asessionculturalduediligencestudypresentationoffindingsculturalduediligencestudydatacollectedfromaroundtheworldinbothcompanies:127individualexecutiveinterviews138focusgroupsspanning1,500managersandindividualcontributorsin22countriescongruencemodeloutputinputenvironmentresourceshistorystrategysystemunitindividualworkpeopleformalorganizationinformalorganizationculturalduediligencestudy1.comparingandcontrastingpre-mergehpandcompaq2.definitionssimilarities-thingsthatthepeopleineachcompanyperceivedaboutthemselvesthatmatchedtheothercompanydifferences-thingsthatthepeopleineachcompanyperceivedaboutthemselvesthatwereatoddswiththeothercompanyuniquecommentary-thingsthatpeopleineachcompanyexpressedveryoftenwhichthoseintheothercompanytalkedmuchlessabout3.thefindingsreflectperceptionscongruencemodeloutputinputenvironmentresourceshistorystrategysystemunitindividualworkpeopleformalorganizationinformalorganizationinputhponhpsimilaritiesproudaboutHPlegacyindustryconsolidatingdisadvantagedinsupplychainandoverheadcostsgoodproductsuniquecommentaryprideinsuccesslinkedtoinnovationtechnical/engineeringheritagegoodreputationwithcustomerspowerhistoricallywiththebusinessandthebackendcompaqoncompaqsimilaritiesstrongbrand,productsandservicesindustryconsolidatingdisadvantagedinsupplychainandoverheadcostsgoodproductsuniquecommentaryhistoricallyfast,nimble,andabletoexecutetraditionallyshort-termfocusedfastgrowththroughnewbusinessmodelredefinedcomputinglandscapecongruencemodeloutputinputenvironmentresourceshistorystrategysystemunitindividualworkpeopleformalorganizationinformalorganizationstrategyhponhpsimilaritiestop-downstrategy;mid-managementnotinvolvedneedforplanningandexecutionprocessdifferences
strategyislong-termorienteduniquecommentarystrategyincreasinglyunclearasyougodowntheorganizationstrategyhastobetranslatedintosomethingconcretecompaqoncompaqsimilaritiesstrategycomesthroughatop-downprocesslittle/nostrategicprocessdifferencessusceptibletofrequentchangesindirectioncustomerfocusedwithashort-termorientationtowardthemarket;interfereswithinvesting/buildingforthefutureuniquecommentarytendencytobeinfluencedmorebymajorcustomeraccountsthantechnologicaladvancementscongruencemodeloutputinputenvironmentresourceshistorystrategysystemunitindividualworkpeopleformalorganizationinformalorganizationworkhponhpdifferencesrespectforprocessstrongplanningandfinancialprocessesworkprocessisorganizationallybased,verticallystrong,workswelluniquecommentaryautonomyinmanagingone’sownworkisthenorm;accountabilityatindividualleveluppermanagementdoesnotseemtobeheldaccountableinthesamewayasotherspoorcross-functionalaccountabilitiesandownershipofworkcompaqoncompaqdifferencesprocessseenasbureaucracy,aversiontoprocesseslackofclear,disciplinedprocessesworkprocess:swatteamsuniquecommentarytechnologyisgreatinformationsystemsarenotintegratedmultitaskingisanormwork-lifebalanceisnotachievedcongruencemodeloutputinputenvironmentresourceshistorystrategysystemunitindividualworkpeopleformalorganizationinformalorganizationpeoplehponhpsimilaritieslowcredibilityinleadershipdifferencesleadershipfocusedonrelationships(howthingsgetdone)uniquecommentarymulticultural,diverse,dedicatedworkforceteam-orientedlosingthe“familyfeeling”lowerlevelsofmanagementareinformal;topmanagementismoreformalandremovedrecentchangesledtolowmoralecompaqoncompaqsimilaritieslowcredibilityinleadershipdifferencesleadershipachievement-oriented,ruggedindividualists(whatgetsdone)uniquecommentarypeoplearebright,committed,andworkhard,longhoursgoodinterpersonalrelationshipslearninghappensonthejobinsufficientinvestmentintraininganddevelopmentpeopledonotfeelempowered,exceptinfieldcongruencemodeloutputinputenvironmentresourceshistorystrategysystemunitindividualworkpeopleformalorganizationinformalorganizationformalorganizationhponhpsimilaritiesgoalschangetoooften;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-downcongruencemodeloutputinputenvironmentresourceshistorystrategysystemunitindividualworkpeopleformalorganizationinformalorganizationinformalorganizationhponhpasstrengthsimilaritiesstrongsenseofethicsstrongcustomer-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;longworkinghourshereandnoworientationconcernsabouttheothercompanyculturalduediligencestudyadvicetocarly&michaelfrominterviewsandfocusgroups:beinclusivedefineyourworkandrolesdefine/communicatewhatyouwantthenewcompanytobebeboldclarifyrolesandorganizationstructuretakeactionquicklycontinuetocommunicatealot;behonest,butbesensitiveinwhatyousayculturalduediligencestudyregion-specificfindingsComparisonofhpwithCompaq--NorthAmericaCulturalgapdifferencesarestatisticallysignificant.Compaq’sAverageHP’sAverageComparisonofhpwithCompaq--LatinAmericaCulturalgapdifferencesarestatisticallysignificant.Compaq’sAverageHP’sAverageComparisonofhpwithCompaq--EMEACulturalgapdifferencesarestatisticallysignificant.Compaq’sAverageHP’sAverageComparisonofhpwithCompaq--AsiaPacificCulturalgapdifferencesarestatisticallysignificant.Compaq’sAverageHP’sAverageComparisonofhpwithCompaq--EnterprisewideCulturalgapdifferencesarestatisticallysignificant.Compaq’sAverageHP’sAverageculturalduediligencestudyinsummary...wealsoheardpeoplesaythat:bothcompanycultureswereintransitionbeforethemergerthedirectionthateachcultureneededtotakewas,actually,toadoptthestrengthsoftheotherso,ifyouintegratewell,buildingoneachother’sstrengths,thepotentialforsuccessisgreatculturalduediligencestudyculturalcornerstonesnewhpculturalcornerstones (release1.0)
valuespassionforcustomerstrust&respectachievement&contributionuncompromisingintegrityteamworkmeaningfulinnovationspeed&agilityprofitglobal
citizenshipleadershipcapabilityemployeecommitmentcorporate
objectivescustomerloyaltygrowthmarketleadershipmetrics&
rewardsstructure&processesstrategiesbehaviorspolicies&practiceslessonslearnedfirst,thoughtherewereimportantdifferencesbetweenthepre-mergehpandcompaqorganizations,therewereagreatmanysimilarities;and,therewereagreatmanypositivecharacteristicsthatbothcompaniesshared(forexample,theemphasisonteamwork)tominimizeunproductiveconflictmovingforward,thereareseverallessonsorimplicationsfromthisstudyforhowweworktogether:focusandbuild
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