华信惠悦咨询公司TheImportanceofCultbnlu.pptx

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1、W W W.W A T S O N W Y A T T.C O M14 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

2、Case Study WWs Approach to 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 SmithFrederick SmithCEO,Federal ExpressCEO,Federal Express4Watson Wyatt M&A Survey 1998(190 CE

3、Os,CFO,Top Executives)n75%are clearly disappointing or outright failuresSource:Watson Wyatt Worldwide M&A Survey,November 1998n50%suffer an overall drop-off in productivity in first 4-8 monthsn47%of acquired company executives leave within the first year;75%within the first three yearsn“People probl

4、ems”are cited as the top integration failure factor by a sample of 45 CFOs from Fortune 500 companies who have recently merged/acquirednOnly 23%of all acquisitions earn their cost of capitalnOn average,management grade the financial performance of their alliances as a“C minus”(on a scale of A to E)5

5、Corporate culture is identified as one of the 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 relationsMa

6、naging resistanceIntegration of corporate culturesRetention of key managersRetention of key talentCommunication37%40%59%57%36%63%78%88%91%90%0102030405060708090 10036%6Cultural incompatibility is the biggest problem,yet results indicate that it is the area least likely researched during due diligenc

7、e.46%47%54%56%72%72%82%86%01020304050607080Organizational culture and dynamics of changeWorkforce potentialHR policy mattersMajor shareholdersManagement capabilities and willingness to cooperateFinancial aspects of HR functionMarket share,distributionHard assets90 100Technological and business compe

8、tencies75%Percentage of companies citing 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%

9、70%Shared responsibility of costs involvedEarly mgt of“What will happen to me?”employee issuesCultural compatibilityMutual agreement of road map by partnersExpedient integrationWell planned communication throughout the deal processLeadership0102030405060708090 10035%8Additional M&A Statistics n1992(

10、Coopers&Lybrand):-In 100 failed or troubled mergers,85%of executives who were surveyed said the major problem was differences in management style and practices.n1996(British Institute of Management):-reported the difficulties involved in merging two cultures to be a major factor in M&A failures.n199

11、7(A.T Kearney):-reviewed 155 M&A deals and determined most failures to be people-related.nHewitt 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 suc

12、cess or failure.nEarlier realization of financial“deal”goals(e.g.cost synergy,strategic initiatives)nProtect productivitynMaintain customer focusnSmoother transitionnEmployees are focused on their jobs and not on personal issues10Organizational Effectiveness Levers CareerCareerDevelopmentDevelopment

13、 PerformancePerformanceManagementManagementStaffingStaffingCompensation,Compensation,Benefits&Benefits&RewardsRewardsEmployeeEmployeeCommunicationCommunication OrganizationOrganizationDesignDesign&Structure&StructureBusinessBusinessStrategy&Strategy&AlignedAlignedCultureCulture LeadershipLeadershipE

14、ffectivenessEffectiveness11AgendaM&A Statistics A Case Study WWs Approach to Cultural IntegrationWhat is Culture?Q&A 12What is culture?Definition of Culture:8The attitudes and benefits about something that are shared by a particular group of a people or in a particular organization(Longman)8The set

15、of important assumptions that members of a community share in common(e.g Schein)Simply put:Simply put:“Corporate Culture is the way you Corporate Culture is the way you do things in your organization”do things in your organization”13Reflects“What is tangible”,e.g.Organisational structure&processes P

16、olicies&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.VISIBLECore ValuesBehaviourINVISIBLEattitude14Implem

17、entation Implementation PlanPlanImplementation Implementation PlanPlanImplementation Implementation PlanPlanThe 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

18、 Statistics 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

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

20、ngOrganizationalCulture17Agenda M&A Statistics A Case Study WWs Approach to Cultural IntegrationWhat is Culture?Q&A 18A Case Study:Background InformationnTwo organizations merged to form a new entitynBoth organizations existed as government statutory boards with regulatory functionsnNew company got

21、listed on the local stock exchange with a clear bottom-line objectivenNew company aims to be performance-driven,improve competitiveness and grow through strategic partnerships19Interviews Focus GroupsManagement WorkshopBest Practice Best Practice ResearchResearchInterviewsFocus GroupsCorporate Cultu

22、re AuditCurrent Culture Current Culture List of Desired ValuesList of Desired Values Behaviour Indicators Behaviour IndicatorsCulture Development Culture Development Programs Programs Desired CultureDesired CultureThe Process of Culture Development 20Mission#1 in the regionCustomer FocusedProfit Dri

23、venInternal EnvironmentProfessional and flexibleBetter decision making processClear Performance-based rewardsMore Inter-department collaborationTailored employee communicationStrategyBottom-Line orientationProfitable products and servicesCost efficiencyMarket confidenceExpansion into other marketsSt

24、rategic alliancesService efficiencyTechnology is importantExternal EnvironmentIntense competitionIncreasing customer demands and sophisticationLeveraging leading-edge technologyCore Values?What is the Current Culture?21Defining the new Core ValuesStrategyMissionInternal EnvironmentExternal Environme

25、ntCore Values?22Core Values:Customer service qualityBottom-line drivenDefining the Core Values#1 in the regionCustomer focusedProfit drivenMissionCore ValuesMissionStrategyExternal EnvironmentInternal Environment23Core Values:Bottom-line drivenObjectivity and integrityProduct innovationCustomer serv

26、ice qualityTechnology leveragedDefining the Core ValuesBottom-line orientationProfitable products and servicesCost efficiencyMarket confidenceExpansion into other marketsStrategic alliancesService efficiencyTechnology is importantStrategyCore ValuesMissionStrategyExternal EnvironmentInternal Environ

27、ment24Intense competitionIncreasing customer demands and sophisticationLeveraging leading-edge technologyCustomer service qualitySpeed and efficiencyFlexibilityTechnology leveragedCore Values:External EnvironmentDefining the Core ValuesCore ValuesMissionStrategyExternal EnvironmentInternal Environme

28、nt25Professional and flexibleBetter decision making processClear performance-based rewardsMore inter-department collaborationTailored employee communicationInternal EnvironmentDefining the Core ValuesCore Values:Core Values:Employee of choice Efficient decision making-initiative,flexibilityObjectivi

29、ty and integrityOpen communicationTeamworkCore ValuesMissionStrategyExternal EnvironmentInternal Environment26MissionCustomer service qualityBottom-line drivenNew set of Core ValuesInternal EnvironmentEmployer of choiceEfficient decision making-initiative,flexibilityObjectivity and integrityOpen com

30、municationTeamworkStrategyBottom-line drivenObjectivity and integrityProduct innovationCustomer service quality Technology leveragedExternal EnvironmentCustomer service qualitySpeed and efficiencyFlexibilityTechnology leveragedNew Set of Core Values27New Core ValuesOrganisationnBottom-line drivennEm

31、ployee orientednTeamwork nTechnology leveragedCustomers/StakeholdersnCustomer service quality nObjectivity and integritynProduct innovation28Interviews Focus GroupsManagement WorkshopBest Practice Best Practice ResearchResearchInterviewsFocus GroupsCorporate Culture AuditCurrent Culture Current Cult

32、ure List of Desired ValuesList of Desired Values Behaviour Indicators Behaviour IndicatorsCulture Development Culture Development Programs Programs Desired CultureDesired CultureThe Process of Culture Development 29Reinforcing New CultureDesired Desired CultureCultureCommunicationCommunicationPerfor

33、mance Performance ManagementManagementCulture Culture Development Development InitiativesInitiativesPerformance Performance Mgmt PlanMgmt PlanTotal Total Rewards Rewards StrategyStrategyCulture Culture Development Development TeamTeamLearning&Learning&Development Development PlanPlanCommunication Co

34、mmunication Communication PlanPlanPlanLeadership Leadership Development Development PlanPlan30Employee acceptance and support was enhanced through a comprehensive communication planKnowledge sharing,involvement,and communications Phase ScopePurposePhase 1Awareness BuildingThis is what is happeningCo

35、mpany-wide*Link change initiatives with strategic plans*Give specific information about the process.*Announce senior managements involvementPhase 2Program StatusThis is where we are going.Company-wide*Demonstrate senior management commitment.*Identify managers and employees issues.*Gain information

36、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 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 Specif

37、ic*Listen to and act on managers and employees needs to implement changes.*Refine changes to ensure success.31Communication PlannCommunication of Core Values to ALL employees=Core Values statement=Video from CEO=Divisional briefings=Incorporate into orientation for new staffnIncorporate into Perform

38、ance Management training via competency model32Performance ManagementnUsing the Balanced Scorecard approach,we helped develop the organisation scorecarddevelop the departmental scorecardsdefine the performance targets nDeveloped a competency model based on Core ValuesnPerformance management training

39、 for all employees33Recognition ProgramsBonuses/IncentivesIndividual MeritBase PayBenefitsPerformanceResults-RelatedProgramsCoreProgramsStockTotal Rewards Strategy34Culture Development InitiativesLearning&Development PlanIdentify organisational development needsDevelop learning and development plans

40、 that link to business and strategic objectivesLeadership Development PlanConduct one-to-one sessions with management team members to develop individual leadership development plan Culture Development TeamsBuild cross-functional teams WW facilitates the interactions,planning and decision making of t

41、he teamsEncourage and appraise the demonstration of desired behaviours35Leadership Development Plan“Leaders walk the talk.”The degree to which the TopTeam accepts the change plan as the best one under the circumstancesThe degree to which the TopTeam accepts the new culture as being in line with thei

42、r 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 shares the interpretation of the new culture.In any change initiative,the critical point is to give people the competencies they need to make

43、 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 management team to build an individualized leadership development plan.36Learning and Development PlanLEARNING AND DEVELOPMENT provides the knowledge,

44、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 identif

45、ied the organization-wide gaps and a development plan to bridge them.We then monitored the implementation of the plan.37Teams created within each Business Unit to address existing barriers that prevent the desired culture from being demonstrated.Issues may involve:rules and policies goals and measur

46、es physical environment organizational structure HR culture teams can address these issues:staffing and selection training and development ceremonies and events rewards and recognitionCulture Development TeamsCULTURE DEVELOPMENT TEAMS instill new culture,values and behaviors by solving critical busi

47、ness problems,caused by old work culture and thinking,that prevent us from most effectively supporting the strategy.38Organization MeasurementSurveys“We keep a continual pulse check on whether we are staying true to our culture/vision.”MEASUREMENT Regularly tracks the current state and progress to e

48、nable readjustment of goals and methodsMethods might include:Culture Audits360 Degree FeedbackEmployee Opinion SurveysCustomers Surveys 39Lessons LearnedlImportant to get the CEOs personal involvement in culture development or any other major HR initiativeslUnderstand the CEOs style and personality

49、and adapting the approach accordingly.lIntimate involvement of client(HR team)at all stages of project e.g.getting their sign off on any communication documents interview questionspresentation slidesliaison for all meetingslBe open to changes in project scope and deliverables409、静夜四无邻，荒居旧业贫。3月-233月-

50、23Tuesday,March 14,202310、雨中黄叶树，灯下白头人。06:10:5606:10:5606:103/14/2023 6:10:56 AM11、以我独沈久，愧君相见频。3月-2306:10:5606:10Mar-2314-Mar-2312、故人江海别，几度隔山川。06:10:5606:10:5606:10Tuesday,March 14,202313、乍见翻疑梦，相悲各问年。3月-233月-2306:10:5606:10:56March 14,202314、他乡生白发，旧国见青山。14 三月 20236:10:56 上午06:10:563月-2315、比不了得就不比，得不到