××公司合并和獲得的文化整合的重要(2)

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 2Agenda

2、M & A Statistics A Case Study WWs Approach to Cultural IntegrationWhat is Culture?Q & A 3Cultural & People Issues Often Present the Biggest Challenges4Watson Wyatt M & A Survey 1998(190 CEOs, CFO, Top Executives) n75% are clearly disappointing or outright failuresSource: Watson Wyatt

3、 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 problems” are cited as the top integration failure factor by a sample of 45 CFOs from F

4、ortune 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)5Corporate culture is identified as one of the most important integration issu

5、es Source: Watson Wyatt Worldwide M&A Survey, November 1998Activities required for “successful” integrationDownsizingRedeployment of workersRecruitment of new staffRetraining workforceAlignment of comp & ben progLabor relationsManaging resistanceIntegration of corporate culturesRetention of

6、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 diligence.46%47%54%56%72%72%82%86%01020304050607080Organizational cult

7、ure and dynamics of changeWorkforce potentialHR policy mattersMajor shareholdersManagement capabilities and willingness to cooperateFinancial aspects of HR functionMarket share, distributionHard assets90 100Technological and business competencies75%Percentage of companies citing the type of informat

8、ion 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%70%Shared responsibility of costs involvedEarly m

9、gt 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 (Coopers & Lybrand) :- In 100 failed

10、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.n1997 (A.T Kearney) :- re

11、viewed 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 succe

12、ss 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 11AgendaM & A Statistics A

13、 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 of important assumptions that members of a

14、 community share in common (e.g Schein)13Reflects “What is tangible”, e.g. Organisational structure & processes Policies & procedures Physical environmentReflects the “Way we do things”, e.g. Degrees of collaboration Decision-making patterns Approaches to process improvementComponents of Cul

15、tureValues have little meaning unless they bring about specific behaviors .VISIBLECore ValuesBehaviourINVISIBLEattitude14The implementation plan will encompass initiatives to create and support these behaviors.Core ValuesBehaviourThe best way to achieve culture change is to focus on desired behavior

16、s .15AgendaM & A 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 AuditB

17、usiness ObjectivesDISCOVERDefiningOrganizationalCultureImplement Culture Change Programs-Training Org. Dev. CommunicationMeasurementDELIVERReinforcingOrganizationalCultureKnowledge sharing, involvement, and communicationsDevelop Culture Change Programs-Leadership Development,Culture Change Teams &am

18、p; Learning & DevelopmentINVENTDevelopingOrganizationalCulture17Agenda 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 sta

19、tutory boards with regulatory functionsnNew company got listed on the local stock exchange with a clear bottom-line objectivenNew company aims to be performance-driven, improve competitiveness and grow through strategic partnerships19 Interviews Focus Groups Management Workshop Interviews Focus Grou

20、ps Corporate Culture AuditThe Process of Culture Development 20Mission # 1 in the region Customer Focused Profit DrivenInternal Environment Professional and flexible Better decision making process Clear Performance - based rewards More Inter-department collaboration Tailored employee communicationSt

21、rategy Bottom-Line orientation Profitable products and services Cost efficiency Market confidence Expansion into other markets Strategic alliances Service efficiency Technology is importantExternal Environment Intense competition Increasing customer demands and sophistication Leveraging leading-edge

22、 technologyCore Values?What is the Current Culture?21Defining the new Core ValuesStrategyMissionInternal EnvironmentExternal EnvironmentCore Values?22Core Values: Customer service quality Bottom-line drivenDefining the Core Values # 1 in the region Customer focused Profit drivenMissionCore ValuesMis

23、sionStrategyExternal EnvironmentInternal Environment23Core Values: Bottom-line driven Objectivity and integrity Product innovation Customer service quality Technology leveragedDefining the Core Values Bottom-line orientation Profitable products and services Cost efficiency Market confidence Expansio

24、n into other markets Strategic alliances Service efficiency Technology is importantStrategyCore ValuesMissionStrategyExternal EnvironmentInternal Environment24 Intense competition Increasing customer demands and sophistication Leveraging leading-edge technology Customer service quality Speed and eff

25、iciency Flexibility Technology leveragedCore Values:External EnvironmentDefining the Core ValuesCore ValuesMissionStrategyExternal EnvironmentInternal Environment25 Professional and flexible Better decision making process Clear performance - based rewards More inter-department collaboration Tailored

26、 employee communicationInternal EnvironmentDefining the Core ValuesCore Values:Core Values: Employee of choice Efficient decision making - initiative, flexibility Objectivity and integrity Open communication TeamworkCore ValuesMissionStrategyExternal EnvironmentInternal Environment26Mission Customer

27、 service quality Bottom-line drivenNew set of Core ValuesInternal Environment Employer of choice Efficient decision making - initiative, flexibility Objectivity and integrity Open communication TeamworkStrategy Bottom-line driven Objectivity and integrity Product innovation Customer service quality

28、Technology leveragedExternal Environment Customer service quality Speed and efficiency Flexibility Technology leveragedNew Set of Core Values27New Core ValuesOrganisationnBottom-line drivennEmployee orientednTeamwork nTechnology leveragedCustomers / StakeholdersnCustomer service quality nObjectivity

29、 and integritynProduct innovation28 Interviews Focus Groups Management Workshop Interviews Focus Groups Corporate Culture AuditThe Process of Culture Development 29Reinforcing New CultureDesired CultureCommunicationPerformance ManagementCulture Development InitiativesPerformance Mgmt PlanTotal Rewar

30、ds StrategyCulture Development TeamLearning& Development PlanLeadership Development Plan30Employee acceptance and support was enhanced through a comprehensive communication planKnowledge sharing, involvement, and communications Phase ScopePurposePhase 1Awareness BuildingThis is what is happening

31、Company-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 info

32、rmation 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.

33、Team Specific* 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

34、 into Performance 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 manag

35、ement training for all employees33Recognition ProgramsBonuses/IncentivesIndividual MeritBase PayBenefitsPerformanceResults-RelatedProgramsCoreProgramsStockTotal Rewards Strategy34Culture Development InitiativesLearning & Development PlanIdentify organisational development needsDevelop learning a

36、nd development plans 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

37、 decision making of the 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 be

38、ing in line with their 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 compe

39、tencies they need to make 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 DEVELOPM

40、ENT provides the knowledge, 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 identified the organization-wide gaps and a development plan to bridge them. We then monitored the implementation of the plan.37Teams created wit