hp solution

8/3/2019 HP Solution

1/18

Agata Stachowicz-StanuschPolitechnika lska

Culture Due Diligence based on HP/Compaq

Merger case study

O course the merger was a success. Neither company could have lost

that much money on its own.

Steve Case, Former Chairman o the BoardAOL/ime Warner

1. Introduction

From the smallest businesses to the worlds largest corporate titans, the searchor synergy oten leads people to seek new markets and new partners. Tevast majority o these eorts are driven by business actors, but according tonumerous experts, they succeed or ail more oten because o cultural actorsthan or any other reason. As a result, the organization that understands its corevalues is much more likely to reach the kind o growth and success that nearly allbusinesses seek [Gallangher 2003, p. 165].

Mergers and acquisitions, or M&A as they are known in the trade, serve as

a prime example o how intangible aspects such as corporate culture can holdsway over billions o dollars and thousands o careers. When done well, theyhave the potential to grow markets, build on complementary strengths, andeliminate ineciency. But because they involve human beings, it is impossibleto predict their success on a balance sheet solely through tangible actors suchas inrastructure, head count, or market share. What ultimately matters in anacquisition is what happens in the hearts and minds o the people who remainwith the new organization and what culture these ormerly distinct entities-choose to build while moving orward [Gallangher 2003, p. 201].

Te sad truth is that nearly two-thirds o corporate mergers do not worn outas well as expected, even in the short term, and the reasons oten have little to

Journal of Intercultural Management

Vol. 1, No. 1, April 2009, pp. 6481


2/18

65

do with business issues. In the Mercer Consulting Groups study, gures showthat even leveraged buyouts (which oten lack the business synergies o othermergers) do better than merged companies taken as a whole. In explanation, theystate bluntly that many o these ailures are caused by not conducting the samekind o due diligence on the culture, structure, and processes o an acquisitiontarget as they do on the nancial balance sheet [Gallangher 2003, p. 200].

Due diligence is one o the methods used to study, investigate, and evaluatebusiness opportunities. Although the term was popularized in the 1980s, theactivity has been a part o business transactions or years [Bouchard, Pellet2002, p. 167].

Historically, due diligence has ocused on the legal and nancial aspects o anorganization and its operations.

Due diligence is typically done beore major decisions are made or shortlyater they are announced to the public. Te scope o due diligence determinesthe length and cost o the procedure and typically varies with actors such as thesize and complexity o the organization or businesses that are under scrutiny;the size o the deal; the relative risk to all parties involved; and time and budgetconstraints.

What is due, or sucient, diligence varies with every situation. At a minimum,due diligence typically analyzes the ollowing: Historical activity (prior ve years worth, i available). Ownership and structure o entity.

Management team. Products and services, including market share by category. Assets and liabilities. Inormation systems and technology. Organizational culture [Bouchard, Pellet 2002, p. 168].

Due diligence is universally conducted as part o the analysis or mergersand acquisitions, increasingly, it is used when evaluating all types o businesscombinations or aliation agreements. However, the ocus o due diligencecontinues to be on the so-called hard data. However, this sot side o personal

due diligence still seems to be lacking in organizational due diligence.In a 1997 position paper, J. Robert Carleton, management consultant and

senior partner o the Vector Group, says, Unortunately, little or no time isgenerally spent analyzing the nature, demeanor, and belies o the people whowill be involved in carrying out the business plan. He believes that standarddue diligence does not address some o the key questions that must be asked toaccurately assess organizational readiness or a major change, such as a mergeror acquisition. Even when some o the right questions are asked, Carletonargues, they are oten limited to brie interviews with key executives, who

likely have diering views rom the rest o the employee group. Te people inthe trenches, the ones doing much o the actual work are not even involved. He



3/18

66

nds it interesting that in nancial and legal due diligence no such act o aith isacceptable in terms o the investigative procedure [Bouchard, Pellet 2002, p. 171].

Companies must examine organizational cultures as well as the other keyelements.

Cultural due diligence is a term borrowed rom the nancial due diligencethat is part o any merger or acquisition, when the acquiring rm pores over the/books and balance sheets o the company it is acquiring to assess its nancialhealth. No one would ever think o moving orward with a merger without thisdetailed nancial check, but i it did the same or assessing a partners businessculture, it would get to examine actors that oten loom ar larger in the successo a new partnership. By adding this cultural due diligence to your own processor growth by acquisition, you gain a substantial competitive advantage overthose rms who do not, and in the process, preserve the values that make yousuccessul as you grow [Gallangher 2003, p. 204].

Cultural Due Diligence is the process which analyzes key cultural domainsthat include: leadership and management practices, styles, and relationships, governing principles, ormal procedures, inormal practices, employee satisaction, customer satisaction, key business drivers, organizational characteristics, perceptions and expectations, and how the work gets done in your organization [Bouchard, Pellet 2002, s. 173; seealso Carleton, Lineberry 2004, pp. 5358].

2. Culture Due Diligence during HP/Compaq Merger case study1

During the HP-CPQ merger, we claimed that values hold one more benecialpower they are a source o democracy in the organization. Why? An

organization is a child o a society. During the HP and CPQ merger we oundthat our organizations were not only children o democratic societies, but also,that even in the period o sudden changes, they were champions o democracy.Senge stated that the more stress we put into an organization, the strongera tendency to return to its most primitive behaviour shall be, and values, orin other words, this that species an identity o an organization, may be therst thing to be thrown out o the window. In case o the HP and CPQ merger,it was the values that enabled the realization o all the process, making it

Based on internal materials o HP and direct quality research in HP/COMPAQ Post-MergerIntegration ofce Munich, 2002/2003.

Agata Stachowicz-Stanusch


4/18

67Culture Due Diligence based on HP/Compaq

possible to recover rom a crisis and build a new organization. Tus orminga new organizational society meant discovering common values, which thenacted as a platorm or our new organization. Tis process may be called a processo value democratisation, because discovering and dening values engaged allour organizational society. In our case, we did not deal with ever so prevailingdictatorship o organization values, where core values o an organization aresimply imposed on employees by top management. Te process o discovering,dening, and adjusting organization activities to its main values has made eachNew HP employee identiy with the values and goals o the organization. Ouremployees are aware o the act that they are entities possessing their own valuesand needs, but it is sharing common core values that harmonises them withgoals o the whole organization. Both all the society, as well as its individual parts,understand that in their best interest is to stick together and they believe theNew HP will enable them to achieve their individual objectives. Te employeesshall then grow with the help o the organization and the organization with thehelp o its employees. Values are not about what is said about them to employees,but how they work. In that case, we shall present a short description o theprocess that made it possible not only to maintain, but also develop democracyduring the CPQ and HP merger [Stachowicz-Stanusch 2004, pp. 9192].

HP has been guided by a strong value system since the inception o thecompany. Company values were rst documented in 1961 and were reerred to asthe ramework or the corporate objectives. In 1989, John Young, the CEO oHP, rewrote the introduction to the Te HP Way document and identied vevalues o the HP Way. Tese values remained unchanged until the CompaqHPmerger in 2002.

Corporate objectivesTe common objectives were established in 1957 at the rst annual managersmeeting and have been modied rom time to time to refect the changing natureo our business and environment. Tere have been our modications where theobjectives, not just the supporting documentation, were changed.

Evolution chartTe chart below shows past changes in HPs values and corporate objectives.Some years, only changes to the supporting documentation were made. Te yearthese minor modications were made are captured in parentheses at the bottomo each list.


5/18

68

Corevalu

es

Corporateobjectives

Note:Yearswithminorupdatesorrepublicatio

nsinparentheses.

Selectthe

mostcapable

peopleforeachassignment

Ahighde

greeofenthusiasm

mustbeencouragedatall

levels

Workinu

nisontoward

commonobjectives

Highlycapable,innovative

peoplethroughoutthe

organization

andprovide

opportunityforskill

development

Objectivesandleadership

whichgenerateenthusiasm

Conductaffairswith

uncompromisinghonestyand

integrity

Workinunisontoward

commonobjectives

Wehavetrustandrespect

forindividuals

Wefocusonahighlevelof

achievementandcontribition

Weconducto

urbusiness

withuncompro

mising

integrity

Weachieveo

urcommon

objectivesthro

ughteamwork

Weencourag

eflexibility

andinnovation

Wearepassionateabout

ourcustomers

Wehavetrusta

ndrespect

forindividuals

Weperformatahigh

levelofachievem

entand

contribution

Weachieveourresults

throughteamwork

Weactwithspeedand

agility

Wedelivermeaningful

innovation

Weconductbusinesswith

uncompromising

integrity

1961

1

977

1989

1989

Profit

ProductContribution

InexpensiveQuality

Employee

Importance

Corporate

Citizenship

StableGro

wth

(59)

1957

ProductContribution

Profit

Employees

CorporateCitizenship

StrenghtforFuture

1961

Profit

Customers

FieldofIntrest

Growth

Employees

Organization

Citizenship19

66

P

rofit

C

ustomers

F

ieldofIntrest

G

rowthOurPeople

M

anagement

C

itizenship

(74,77,80.82,86,

89,97)1

969

Customer

Loyalty

Profit

MarketLeadership

Growth

Employee

Commitm

ent

LeadershipCapability

GlobalCitizenship

2002

Figure1.EvolutionoHPscorevalue

sandcorporateobjectives.



6/18

69

Much shorter history o the Compaq Company has hindered evolution o itsvalues and thereore at the moment o the merger, the companys main valuesincluded:

whereas, its strategic goals were:

4. Discovering new ater-merger values

At the announcement o the merger, there was an instant response rom themerger opponents. One o the key issues raised by the adversaries was that thetwo corporations presented completely dierent cultures. Analysing the historyo both companies we have a eeling that their roots, management styles, aswell as employees attitudes were so much diverse. Tereore, one o the majorsteps undertaken straight ater the declaration o the merger was conductinga comparable analysis o their organizational cultures. It was believed that theanalysis results would provide signicant inormation to help the integrationo both companies, and most o all, the integration o their organizationalcultures. Te analysis project was approved and agreed by managers o the twocompanies. Te research sample covered 127 executive directors and 138 ocusgroups including altogether 1,600 managers and employees rom 22 countries.Te research was eventually conducted in autumn, 2001. Te subject o thestudy was the companies organizational culture, dierences and similaritiesbetween the two corporations, as well as its individual eatures or each o the

Compaq values (2001)

Listening and solving customer problems

Being passionate about everything we do

Driving innovation and building cool stuff

Partnering for our customers advantage

Communicating openly and honestly

Doing what we say

Having fun

Compaq objectives (2001)

Extend our enterprise

Capabilities

Growand achieve critical

mass in services

Improve PC economics

and increase supply chain

velocity



7/18

70

companies. It also dealt with each companys own as well as mutual perception othe environment, resources, history, people, ormal and inormal organization.

Te ndings were organized using the model o organizational unctioning:every company has input (on the let hand side o this model) that ormsa starting point or the company its environment, available resources, andhistory. Companies seek to transorm various inputs, like raw materials, intodesired outputs (on the right hand side o the model). However, the quantityand quality o those outputs depend on a number o actors, internal to thecompany.

Te rst is how well the strategy is articulated and how well it positions thecompany to deal with the realities o its inputs, like the competitive landscapeor the cost o resources to the company. Also, there are our additional actorsthat must be in harmony, or congruence, in order to translate that strategy intodesired output.

Tose actors include the nature o the work, the people and quality oleadership to accomplish the work, the ormal structures and processes toorganize to do the work, and the inormal organization or the unwritten ruleso the road or how work actually gets done.

When these actors are in harmony, or congruence, a company has the greatestlikelihood o executing on its strategy and producing desired results.

Figure 2.

Source: HP internal materials.

Most results were presented in the orm o comparing similarities anddierences between both companies, as well as their individual characteristics.Te chart below shows the enterprise wide biggest gaps and similarities rom

the ocus groups or HP and Compaq or both companies as a whole.

outputinput

environment

resources

history

strategy

system

unit

individual

work

people

formal

organization

informal

organization



8/18

71

CulturalGaps

Precedence.Lookstothe

organizationsrichhistory

asasourceofkno

wledge.

Inquiry.Focusesonfuturepossibilities

andlearnastheygo.

InternalFocus.F

ocuses

mostlyonimprovement

ofinternalprocessesand

structures;hasmo

derate

awarenessofourcompetitors.

ExternalFocus.Focusesmostlyon

pursuitofnewmarketsandcu

stomers;

isverymuchawareofcompetitorsand

closelyfollowsthemovestheymake.

Systematic.Relie

sheavily

onorganizedplansforour

work.Workproce

ssesare

clearlydefined.

Spontaneous.Reliesonabilityto

respondtojust-in-timeopportunities;

continuallyturnsonadime

tomeet

demands.

Precision.Gettingthejobdone

rightismoreim

portantthan

gettingitdonequickly,even

thoughitmaytakeextratime.

Speed.Gettingthejobdonefastmakes

roughlyrightoutcomesacceptable

eventhoughwemaysacrifice

discipline

orrigor.

Reflection.Valuesreview

ofsignificantevents;debrief

eventstoshareinsightsand

bestpractices.

Iteration.Valuesatrialanderror

approach;forgesaheadwithoutlooking

back.

1

2

3

4

5

Figure

3.

ComparisonohpwithCompaqEnterprisewide.

Culturalgapdierencesarestatisticallysignif

ant.



9/18

72

CulturalSimilarities

WinnerFocused.

Conflicts

areresolved

bydebatinguntilthere

isawinner.

IssueFocused.

Conflictsareresolved

byexploringthemeritsofdiffering

pointsofview.

Competition.

People

tendtobefocusedontheir

own

advancement

andachievement.

Cooperation.

Peopletendtooffer

helpandsupporttoensureoth

ersare

succesful.

Dominance.

Persues

growththroughproduct

proliferation/lineextensions

andacquisitions.

Value.Persuesgrowththroug

hproduct

innovationandanticipationofemerging

customerneeds.

Threat.Isanxiousabouttheir

future.

Pastsuccesses

arenot

sufficienttoensurecontinued

performance.

Opportunity.Isexcitedabou

ttheir

future.

Trackrecordhaspositionedthem

wellforfutureseccess.

Reaction.

Changes

inresponsetosignificant

events.

Initiation.

Initiateschange

inanticipationofsignificante

vents.

1

2

3

4

5

HPsAverage

CompaqsAverage



10/18

73

5. New Values

One o the rst steps in bringing HP and Compaq together as one team wasconducting a detailed review o both companies to gure out what employeesvalued, what moved them and what motivated them. Tis eort includedinterviews with more than 120 employees and ocus group sessions with another1,500 employees across the globe.

Te objectives o this review were to identiy the key attributes o both HPand Compaq, recognize the strengths o each organization and nd a sharedpoint o reerence or the new HP. Preserving the best, reinventing the rest.

Te new HP Way adopted HPs concentric circle ramework. Te selection othe cultural cornerstones (the rst two circles o the ramework) was evolutionaryin nature, not revolutionary, leveraging the rich historical traditions, strengths,values and objectives o both Compaq and HP. Tey are also consistent with

the Rules o the Garage, a document drated by HPs executive team in 1999 toreconnect HPs employees with the spirit and intent o the companys ounders(see Fig. 4, next page).

New values ormed oundations or the specication o strategic goals,strategies, processes, structures, measures, policies, practices and behaviours.

Each o the main values was dened and presented by the means o bestpractices instances. Underneath, I shall present a denition o a value as well asexamples o New HP best practices.

Value: we are passionate about customers.

Value defnition: We put the customer rst in everything we do and in everydecision we make. We create a culture and management process that motivatesand empowers employees to act in the best interests o the customer.

Practices: Examples o how this shows up Measure otal Customer Experience (CE) perormance across customersegments and product/service categories. Living the HP Customer Experience Standard. Employees take ownership o customer issues brought to them and know whoto contact to resolve them. Clear line-o-sight accountability and direct link to compensation and

perormance management. We honor our commitments to customers [Stachowicz-Stanusch 2007,pp. 213219].

On the basis o dened values the strategic companys objectives weregenerated.

In addition to examples o practices, each corporate objective has a list ounderlying belies that add meaning to the objective statement. Oten the wordsmean dierent things to dierent people. Te belies are meant to give insightinto what we mean as a leadership team with the words we chose to describe our

objectives.



11/18

74

HPvalues(1989)

Trustandrespectforindividuals

Ahighlevel

ofachievement

andcontribu

tion

Uncomprom

isingintegrity

Teamwork

Flexibilityandinnovation

The

newHPvalues(2002)

We

arepassionateaboutourcustom

ers

We

havetrustandrespectforindividuals

We

performathighlevelofachievement

and

contribution

We

achieveourresultsthroughteam

work

We

actwithspeedandagility

We

delivermeaningfulinnovation

We

conductbusinesswith

unc

ompromisingintegrity

HPobjectives

(1997)

Profit

Customers

FieldofInteres

t

Growth

OurPeople

Management

Citizenship

Compaqva

lues(2001)

Listeningan

dsolving

customerproblems

Beingpassionateabout

everythimgwedo

Drivinginnovation

andbuilding

coolstuff

Partneringforourcustomers

advantage

Communica

tingopenly

andhonestly

Doingwhat

wesay

Havingfun

The

newHpcorporateobjective(

2002)

CustomerLoyalty

Profit

Mar

ketLeadership

Growth

EmployeeCommitment

LeadershipCapability

GlobalCitizenship

Compaqobjectives(2001)

Extendourenterpise

Capabilities

Growandachievecritical

massinservices

ImprovePCeconomics

andincreasesupplychain

velocity

Figure

4.Te

valuesandcorporateobjectivesotheNewHP.

IntegratingtheBestoBothCompaqand

HP.



12/18

75

Objective: customer loyalty.Explanation: o provide products, services and solutions o the highest

quality and the greatest possible value to our customers, thereby gaining andholding their respect and loyalty.

Practices: Strong CE-measured competitive perormance (balanced scorecard). Focus on delivering real customer value, ocused outside not inside belies. Our continued success is dependent on increasing loyalty o our customers. We must listen attentively to customers to truly understand their needs, thentake the appropriate action. Competitive total cost o ownership, quality and the way we do business drivescustomer loyalty. Our products, solutions, and services work better together.

Te values, corporate objectives, strategies and practices were presentedat the cultural cornerstones or the new HP model:

Figure 5.

valuespassion for customers

trust and respect

achievement and contribution

teamwork

speed and aguility

meaningful innovationuncompromising integrity

corporateobjectives

leadership

capability

employee

commitment

global

citizenship

profit

market

leadership

growth

customer

loyalty

strategies

and practices

structuresand processstrategies

behavioursmetrics

and rewards

policies

and practicies



13/18

76

6. Fast Start

o liven up the Core Values o New HP, the company developed a dedicatedprogram: FAS SAR. Fast Start is two-days business meeting or intact teams

designed to speed execution excellence. Tey are a vital communication vehicleor transmitting, interpreting, and incorporating inormation about the new HPstrategy, organization model, brand, culture, and transition plan.

Fast Start provides the structure and content o every teams rst stameeting in the new HP. It was designed to: provide clarity o direction and roles so that people can execute eectively inthe new company, engage managers and their teams in taking action to assure smooth, rapid, andsuccessul integration.

Fast Start had our key objectives: accelerate leadership readiness throughout HP, building on Leadership ReadinessSummit, deploy critical business inormation through line-driven meetings, establish team agreements that drive execution excellence and build the newHP culture, review, understand, and action plan or change and HP integration management.

Every manager was required to conduct a Fast Start meeting or his/her intactteam. Tereore, all employees had an opportunity to participate in a Fast Start

meeting.Tere were certain requirements or Fast Start. Tese requirements had tomet in order or the session to be counted as a Fast Start. Tey included: the Fast Start session had to be completed within 30 days o when the teamwas announced, there had to be a majority o team members present, the team had to devote workshop time to inormation sharing, discussion, anddialogue on the ollowing: the new HP strategy, structure, brand, and culture and its implications or ownunit, the Cultural Cornerstones and culture-in-action exercises, the establishment o the team agreement, team norms, and key goals, the development o their organization architecture and roles and responsibilities(Decision Rights matrix), producing an Integration Plan o Record (I-POR).Fast Start meetings had specic deliverables, including: understanding o new hp direction,organization and business context, organization design and selection plan, integration plan, meet new team members,



14/18

77

team agreement, integration issues identied.Te whole Fast Start Process was presented at the chart below:

Figure 6.

ipor inormation od&s matl team interviews team charter &roles (i existing) leadership ideas logistics andresources or

s session

*consultants have attended orientation/hr traningast start consultant may be hr managers or other oe proessionals

Reporting and racking:Te HP Executive Committee elt so strongly about the importance o Fast Startto the success o the merger that the completion o Fast Starts at all levels o theorganization was a measure on its Balanced Scorecard.

Each Fast Start consultant was responsible or entering the results o theirFast Start session into the Fast Start data capture tool located at HP intranet.

o make Fast Start more ecient, several valuable resources were created toacilitate Fast Start sessions. Tese included:Fast Start Overview A summary presentation on Fast Start. It highlights

the purpose, objectives, proposed agenda, and deployment process. Facilitation Guide or Managers and Consultants Tis guide provides thespecications or a Fast Start session and includes new guidelines or in--personand virtual delivery. It replaces the Consultants Guide. Te guide incorporatesthe learning and experience o HR managers and consultants who have deliveredthese modules during the initial months o integration (prior to launch). We

identiy the core topics to be discussed, and actions to be taken in preparing orand completing a Fast Start session.

meeting objectivesand agenda

review o modules anticipated toughissues or momentstruthmeeting planningagreements (roles,logistics, subjectmatter expertsto be included)

per agenda line manager/aststart consultant

debrie/planning line manager w/ownline manager debrie ast start consultantwith local hrcoordinator (teamagreement, ast startchecklist) team members leadsessions with theirteams

meetingpreparation

planningmeetingline manager,ast startconsultant*

ast startworkshop(line manager,ast startconsultant)

meetingdebriesand ollowthrough



15/18

78

Fast Start Checklist and Discussion Guide Te checklist and discussion guideis a tool to acilitate the initial planning meetings between a line manager andFast Start consultant, and to capture eedback rom the Fast Start session toassist the Fast Start team in continuously improving the ormat o and materialsupporting the running o a session. Fast Start line managers presentation Te presentation template includes thekey slides all Fast Start meetings should include. Te template also provides slideplace holders to cut and paste slides rom the supplemental slides presentationand partially completed slides that require managers to provide their owncontent. Tis template makes it easy or managers to customize the content otheir Fast Start sessions. Printable version or black and white printer A version o the line managerspresentation or printing with a black and white printer. Fast Start Supplemental Slides Te supplemental slides are a compilation oslides rom the owners manual (a group o clean room presentations on variousintegration topics) and other sources that will enable line managers to easilycustomize their Fast Starts to their businesses, unctions and/or regions. Tesupplemental slides include such things as organizational charts and additionalgroup exercises. Fast Start FAQs Commonly asked questions about Fast Start. Fast Start Perormance racker Tis spreadsheet will track who has completedand who has yet to complete their Fast Start sessions. Te sheet will alsosummarize the perormance o the cascade o Fast Start through each leaderand leadership level.

Supplemental Resources:Tis section includes links to additional leadership and change management

tools and resources that can assist managers in the team development andintegration process. Fast Start Consultants Best Practices An HP change management web sitededicated to helping managers, change agents and individuals lead and deal withorganization change.

HP and Compaq culture due diligence executive summary Succeeding in the New HP, an online training solution that accelerates integrationthrough the development o a personal call to action plan. Managers andemployees will build their understanding o the HP values, corporate objectives,strategies, our customer value proposition and the HP organizational design. Merger Background Reading Te background reading includes articlesabout better practices related to merger integration. Tese articles will helpmanagers understand some o the challenges related to the integration o twoorganizations and equip them with tools and ideas or pre-empting or addressing

these challenges.



16/18

79

Merger Case Studies Tese case studies highlight some o the successes andailures in the area o corporate mergers and acquisitions. Tey enable managersto learn rom the experiences, both positive and negative, o other organizations. Culture Slides.Te main element o Fast Start was two-days workshop consists with 10 modules.We present roughly the content o every module below:Module 1: Welcome and Meeting Objectives Review agenda, objectives, and desired outcomes. Logistics covered: including break processes, phones, support. Address any logistical questions.Module 2: Introductions Provide an opportunity or group members to get to know each other. Get inormation/input which helps shape two-day experience to meet groupmembers needs (by stating participants objectives). Prioritize member requests and needs in terms o contribution toward groupeectiveness.Module 3: Te HP Business Context Provide inormation and understanding about the HP vision, mission, strategy,and brand. Set the business context or own teams work. Generate sense o material to be covered.Module 4: Leadership Session

Provide a line manager an opportunity to shape direct reports understandingabout himsel/hersel. Provide a venue or line manager to state expectations and preerences orworking style. Oer team members an opportunity to get to know their line manager. Oer team members an opportunity to shape expectations or the managerrelationships. Share inormation on business context, team agreement. Have team identiy positives in business strategy/situation.

Module 5: New HP Culture in Action Provide ace-to-ace cascade o new HP cultural cornerstones. Discuss what cultural cornerstones mean to us. Raise awareness o potential confict and disconnects on the team. Create clarity about the teams goals and roles. Develop Operating Principles to guide team member behavior.Module 6: eam Agreement Development Review team purpose rom morning. Co-create team processes.

Build a team agreement document. Clariy eam Operating Principles (Values).



17/18

80

Module 7: Organization Design and Selection Share the corporate selection approach. Share and align team members design and selection processes. Review and nalize own teams process and timeline. Structuring choices.Module 8: Management Resources High level review o key HR practices and resources in New HP. Understand groups needs and potential resources to address them.Module 9: Review o Integration Implementation Plans Inorm team o work done in the clean room and translate into implicationsor us. Build understanding o corporate Integration Plan o Record (I-POR). Develop team plan o record. Prepare deliverables or management, integration team.Module 10: Action Planning and eam Debrie Review action items that have been generated during two days; consolidateinto streams o work. Be clear on who is accountable or doing what. Give team time to refect on how the meeting went things to do again, thingsto try dierently. Discuss what will be shared rom this meeting (and what will not)Follow-Up Meeting

Discuss meeting outcomes and eectiveness. Review action items and determine plans to ollow up. Discuss Fast Start report back to Integration Steering Committee; linemanagement; HR.

We must remember that no organization is immune rom external orcessuch as market pressures, or internal ones such as changes o leadership. And nocorporate culture guarantees your success in the uture. No single organizationin existence today can aord to stop listening to both its employees and themarketplace, and, is a result, every business culture requires constant ne-

tuning to survive and fourish. And while no corporate culture represents anironclad guarantee against ailure, the right core values still remain the biggestactors in your success.

What prots a man i he gains the world but losses his soul?

Abstract

Te paper presents problems o organizations occurring in mergers and acquisitions

processes in connection to adjusting organization cultures o joined companies. Te Due

Diligence method was described as a tool enabled to solve given above problems. Te

author pays special attention to the cultural dimension o due diligence and presents

its application in relation to values in case o HP and Compaq Computer merger.



18/18

81

Reerences

Gallangher, R.S. 2003, Te Soul o an Organization, Dearborn rade Publishing, Chicago.

Bouchard, P.J., Pellet, L. 2002, Getting you Shit ogether. Making Sense o organization

Culture Change, CCI Press.Carleton, J.R., Lineberry, C.S. 2004,Achieving Post-Merger Success. A Stakeholders Guideto Culture Due Diligence, Assessment, and Integration, Peier, New York

Stachowicz-Stanusch, A. 2004, Zarzdzanie poprzez wartoci. Perspektywa rozwojuwspczesnego przedsibiorstwa, Wydawnictwo Politechniki lskiej, Gliwice.

Stachowicz-Stanusch, A. 2007, Potga wartoci. Jak zbudowa niemierteln frm, Helion,Gliwice.


hp solution

Documents