cultural due diligence study welcome agenda: presentation of findings q&a session cultural due diligence study presentation of findings cultural due diligence study data collected from around the world in both companies: 127 individual executive interviews 138 focus groups spanning 1,500 managers and individual contributors in 22 countries congruence model output input environment resources history strategy system unit individual work people formal organization informal organization cultural due diligence study 1. comparing and contrasting pre-merge hp and compaq 2. definitions similarities - things that the people in each company perceived about themselves that matched the other company differences - things that the people in each company perceived about themselves that were at odds with the other company unique commentary - things that people in each company expressed very often which those in the other company talked much less about 3. the findings reflect perceptions congruence model output input environment resources history strategy system unit individual work people formal organization informal organization input hp on hp similarities proud about HP legacy industry consolidating disadvantaged in supply chain and overhead costs good products unique commentary pride in success linked to innovation technical/engineering heritage good reputation with customers power historically with the business and the back end compaq on compaq similarities strong brand, products and services industry consolidating disadvantaged in supply chain and overhead costs good products unique commentary historically fast, nimble, and able to execute traditionally short-term focused fast growth through new business model redefined computing landscape congruence model output input environment resources history strategy system unit individual work people formal organization informal organization strategy hp on hp similarities top-down strategy; mid-management not involved need for planning and execution process differences strategy is long-term oriented unique commentary strategy increasingly unclear as you go down the organization strategy has to be translated into something concrete compaq on compaq similarities strategy comes through a top-down process little/no strategic process differences susceptible to frequent changes in direction customer focused with a short-term orientation toward the market; interferes with investing/building for the future unique commentary tendency to be influenced more by major customer accounts than technological advancements