culturalduediligencestudy welcomeagenda presentationoffindingsq asession culturalduediligencestudy presentationoffindings culturalduediligencestudy datacollectedfromaroundtheworldinbothcompanies 127individualexecutiveinterviews138focusgroupsspanning1 500managersandindividualcontributorsin22countries congruencemodel output input environment resources history strategy system unit individual work people formalorganization informalorganization culturalduediligencestudy paringandcontrastingpre mergehpandcompaq2 definitionssimilarities thingsthatthepeopleineachcompanyperceivedaboutthemselvesthatmatchedtheothercompanydifferences thingsthatthepeopleineachcompanyperceivedaboutthemselvesthatwereatoddswiththeothercompanyuniquecommentary thingsthatpeopleineachcompanyexpressedveryoftenwhichthoseintheothercompanytalkedmuchlessabout3 thefindingsreflectperceptions congruencemodel output input environment resources history strategy system unit individual work people formalorganization informalorganization input hponhpsimilaritiesproudaboutHPlegacyindustryconsolidatingdisadvantagedinsupplychainandoverheadcostsgoodproductsuniquecommentaryprideinsuccesslinkedtoinnovationtechnical engineeringheritagegoodreputationwithcustomerspowerhistoricallywiththebusinessandthebackend compaqoncompaqsimilaritiesstrongbrand productsandservicesindustryconsolidatingdisadvantagedinsupplychainandoverheadcostsgoodproductsuniquecommentaryhistoricallyfast nimble andabletoexecutetraditionallyshort termfocusedfastgrowththroughnewbusinessmodelredefinedcomputinglandscape congruencemodel output input environment resources history strategy system unit individual work people formalorganization informalorganization strategy hponhpsimilaritiestop downstrategy mid managementnotinvolvedneedforplanningandexecutionprocessdifferencesstrategyislong termorienteduniquecommentarystrategyincreasinglyunclearasyougodowntheorganizationstrategyhastobetranslatedintosomethingconcrete compaqoncompaqsimilaritiesstrategycomesthroughatop downprocesslittle nostrategicprocessdifferencessusceptibletofrequentchangesindirectioncustomerfocusedwithashort termorientationtowardthemarket interfereswithinvesting buildingforthefutureuniquecommentarytendencytobeinfluencedmorebymajorcustomeraccountsthantechnologicaladvancements congruencemodel output input environment resources history strategy system unit individual work people formalorganization informalorganization work hponhpdifferencesrespectforprocessstrongplanningandfinancialprocessesworkprocessisorganizationallybased verticallystrong workswelluniquecommentaryautonomyinmanagingone sownworkisthenorm accountabilityatindividualleveluppermanagementdoesnotseemtobeheldaccountableinthesamewayasotherspoorcross functionalaccountabilitiesandownershipofwork compaqoncompaqdifferencesprocessseenasbureaucracy aversiontoprocesseslackofclear disciplinedprocessesworkprocess swatteamsuniquecommentarytechnologyisgreatinformationsystemsarenotintegratedmultitaskingisanormwork lifebalanceisnotachieved congruencemodel output input environment resources history strategy system unit individual work people formalorganization informalorganization people hponhpsimilaritieslowcredibilityinleadershipdifferencesleadershipfocusedonrelationships howthingsgetdone uniquecommentarymulticultural diverse dedicatedworkforceteam orientedlosingthe familyfeeling lowerlevelsofmanagementareinformal topmanagementismoreformalandremovedrecentchangesledtolowmorale compaqoncompaqsimilaritieslowcredibilityinleadershipdifferencesleadershipachievement oriented ruggedindividualists whatgetsdone uniquecommentarypeoplearebright committed andworkhard longhoursgoodinterpersonalrelationshipslearninghappensonthejobinsufficientinvestmentintraininganddevelopmentpeopledonotfeelempowered exceptinfield congruencemodel output input environment resources history strategy system unit individual work people formalorganization informalorganization formalorganization hponhpsimilaritiesgoalschangetoooften theyareunclear executionnotenforcednoconsequencesfornotmeetingobjectives performancemetricsunclearorabsent differacross silos front end back endstructureexacerbatedproblemswithaccountabilityhpishorizontallychallengedmorepowermovingtothefront endorganizationhpisbecomingmorecentralizeddifferencesnocommonprocessfordecisionmaking verytop down slow longdecisioncycletimes butthoughtfulandhighinvolvementgeneralperceptionthatdecisionsarerarelymade buttendtostickoncemade compaqoncompaqsimilaritiesgoalschangefrequentlyandnotsynchronizedbetweenfront endandback endorganizationspeoplearenotheldaccountable structureandmeasurementsystemscloudaccountabilitystrongmatrixmanagementleadingtofuzzylinesofaccountabilitiesperformancemanagementinconsistent generallypoorplanningandcontrolcross organizationalcollaborationdifficultcountrymanagersarekingsmanythingsareverycentralizeddifferencesdecisionsmadequicklyalotof checkingin tomakeadecision iterativedecisions top down congruencemodel output input environment resources history strategy system unit individual work people formalorganization informalorganization informalorganization hponhpasstrengthsimilaritiesstrongsenseofethicsstrongcustomer focus makegreatproducts teamculture havetobepartofthegroupgettingresultsisrewarded sometimeseffortwithoutaresultgetsrewardedhavingbignewideasisvaluedtreatpeoplewithdignitymultiplesubculturesdifferencesconflictavoidanceandover compromisearenormaltitlesnotreferenced egalitarianuniquecommentary silomentality failuredeservesasecondchancediversityandpeoplearevalued compaqoncompaqsimilaritiesethicalbehaviorisenforcedstrongcustomerorientation makewhattheywant teamworkisvaluedhighlyresults bottom linefocused sometimeseffortwithoutaresultsgetsrewardedopennesstogood newideasdon tpubliclyembarrasspeoplemultiplesubculturesdifferencesconflictaddresseddirectly openly aggressive brashtitlesarereferenced abundant hierarchicaluniquecommentaryinitiative flexibility goforit attitudearevaluedrelaxed flexworkenvironment longworkinghourshereandnoworientation concernsabouttheothercompany culturalduediligencestudy advicetocarlybehonest butbesensitiveinwhatyousay culturalduediligencestudy region specificfindings ComparisonofhpwithCompaq NorthAmerica Culturalgapdifferencesarestatisticallysignificant ComparisonofhpwithCompaq LatinAmerica Culturalgapdifferencesarestatisticallysignificant ComparisonofhpwithCompaq EMEA Culturalgapdifferencesarestatisticallysignificant ComparisonofhpwithCompaq AsiaPacific Culturalgapdifferencesarestatisticallysignificant ComparisonofhpwithCompaq Enterprisewide Culturalgapdifferencesarestatisticallysignificant culturalduediligencestudy insummary wealsoheardpeoplesaythat bothcompanycultureswereintransitionbeforethemergerthedirectionthateachcultureneededtotakewas actually toadoptthestrengthsoftheotherso ifyouintegratewell buildingoneachother sstrengths thepotentialforsuccessisgreat culturalduediligencestudy culturalcornerstones newhpculturalcornerstones release1 0 valuespassionforcustomerstrust respectachievement contributionuncompromisingintegrityteamworkmeaningfulinnovationspeed agility profit globalcitizenship leadershipcapability employeecommitment corporateobjectives customerloyalty growth marketleadership metrics rewards structure processes strategies behaviors policies practices lessonslearned first thoughtherewereimportantdifferencesbetweenthepre mergehpandcompaqorganizations therewereagreatmanysimilarities and therewereagreatmanypositivecharacteristicsthatbothcompaniesshared forexample theemphasisonteamwork tominimizeunproductiveconflictmovingforward thereareseverallessonsorimplicationsfromthisstudyforhowweworktogether focusandbu