公司合并获得的文化整合的重要性(英文版)(ppt 40页).ppt

1、14 March 2002, Shanghai Kwan Chee Wei Director Human Capital Group Watson Wyatt Singapore,The Importance of Cultural Integration in Mergers and Acquisitions,2,Agenda,M 75% within the first three years,“People problems” are cited as the top integration failure factor by a sample of 45 CFOs from Fortu

2、ne 500 companies who have recently merged/acquired,Only 23% of all acquisitions earn their cost of capital,On average, management grade the financial performance of their alliances as a “C minus” (on a scale of A to E),6,Corporate culture is identified as one of the most important integration issues

3、,Source: Watson Wyatt Worldwide M&A Survey, November 1998,Activities required for “successful” integration,Downsizing,Redeployment of workers,Recruitment of new staff,Retraining workforce,Alignment of comp & ben prog,Labor relations,Managing resistance,Integration of corporate cultures,Retention of

4、key managers,Retention of key talent,Communication,37%,40%,59%,57%,36%,63%,78%,88%,91%,90%,0,10,20,30,40,50,60,70,80,90,100,36%,7,Cultural 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%,0,

5、10,20,30,40,50,60,70,80,Organizational culture and dynamics of change,Workforce potential,HR policy matters,Major shareholders,Management capabilities and willingness to cooperate,Financial aspects of HR function,Market share, distribution,Hard assets,90,100,Technological and business competencies,7

6、5%,Percentage of companies citing the type of information gathered during due diligence,Source: Watson Wyatt Worldwide M&A Survey, November 1998,8,Reasons for successful integration,Source: Watson Wyatt Worldwide M&A Survey, November 1998,Percentage of companies citing reason for success,8%,41%,31%,

7、37%,52%,70%,Shared responsibility of costs involved,Early mgt of “What will happen to me?” employee issues,Cultural compatibility,Mutual agreement of road map by partners,Expedient integration,Well planned communication throughout the deal process,Leadership,0,10,20,30,40,50,60,70,80,90,100,35%,9,Ad

8、ditional M & A Statistics,1992 (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.,1996 (British Institute of Management) :- reported the difficulties involved in merging two cultures

9、to be a major factor in M & A failures.,1997 (A.T Kearney) :- reviewed 155 M & A deals and determined most failures to be people-related.,Hewitt Associates - 69% of respondents in 162 organizations involved in M & A reported the top challenge to be integrating two organizational cultures.,10,How int

10、egration is handled will make the difference between success or failure .,Earlier realization of financial “deal” goals (e.g. cost synergy, strategic initiatives) Protect productivity Maintain customer focus Smoother transition Employees are focused on their jobs and not on personal issues,11,Organi

11、zational Effectiveness Levers,Career Development,PerformanceManagement,Staffing,Compensation,Benefits &Rewards,EmployeeCommunication,OrganizationDesign & Structure,BusinessStrategy & AlignedCulture,LeadershipEffectiveness,12,Agenda,M & A Statistics,A Case Study,WWs Approach to Cultural Integration,W

12、hat is Culture?,Q & A,13,What is culture?,Definition of Culture: The attitudes and benefits about something that are shared by a particular group of a people or in a particular organization (Longman) The set of important assumptions that members of a community share in common (e.g Schein),Simply put

13、 :,“ Corporate Culture is the way you do things in your organization”,14,Reflects “What is tangible”, e.g. Organisational structure & processes Policies & procedures Physical environment,Reflects the “Way we do things”, e.g. Degrees of collaboration Decision-making patterns Approaches to process imp

14、rovement,Components of Culture,Values have little meaning unless they bring about specific behaviors .,15,The implementation plan will encompass initiatives to create and support these behaviors.,Core Values,Behaviour,The best way to achieve culture change is to focus on desired behaviors .,16,Agend

15、a,M & A Statistics,A Case Study,WWs Approach to Cultural Integration,What is Culture?,Q & A,17,Our Approach to Cultural Integration,18,Agenda,M & A Statistics,A Case Study,WWs Approach to Cultural Integration,What is Culture?,Q & A,19,A Case Study: Background Information,Two organizations merged to

16、form a new entity Both organizations existed as government statutory boards with regulatory functions New company got listed on the local stock exchange with a clear bottom-line objective New company aims to be performance-driven, improve competitiveness and grow through strategic partnerships,20,In

17、terviews Focus Groups Management Workshop,Interviews Focus Groups Corporate Culture Audit,Culture Development Programs,The Process of Culture Development,21,Mission # 1 in the region Customer Focused Profit Driven,Internal Environment Professional and flexible Better decision making process Clear Pe

18、rformance - based rewards More Inter-department collaboration Tailored employee communication,Strategy Bottom-Line orientation Profitable products and services Cost efficiency Market confidence Expansion into other markets Strategic alliances Service efficiency Technology is important,External Envir

19、onment Intense competition Increasing customer demands and sophistication Leveraging leading-edge technology,Core Values?,What is the Current Culture?,22,Defining the new Core Values,23,Defining the Core Values,Mission,Core Values,Mission,Strategy,External Environment,Internal Environment,24,Definin

20、g the Core Values,Strategy,Core Values,Mission,Strategy,External Environment,Internal Environment,25,External Environment,Defining the Core Values,Core Values,Mission,Strategy,External Environment,Internal Environment,26,Internal Environment,Defining the Core Values,Core Values,Mission,Strategy,Exte

21、rnal Environment,Internal Environment,27,Mission Customer service quality Bottom-line driven,New set of Core Values,Internal Environment Employer of choice Efficient decision making - initiative, flexibility Objectivity and integrity Open communication Teamwork,Strategy Bottom-line driven Objectivit

22、y and integrity Product innovation Customer service quality Technology leveraged,External Environment Customer service quality Speed and efficiency Flexibility Technology leveraged,New Set of Core Values,28,New Core Values,Organisation Bottom-line driven Employee oriented Teamwork Technology leverag

23、ed Customers / Stakeholders Customer service quality Objectivity and integrity Product innovation,29,Interviews Focus Groups Management Workshop,Interviews Focus Groups Corporate Culture Audit,Culture Development Programs,The Process of Culture Development,30,Reinforcing New Culture,31,Employee acce

24、ptance and support was enhanced through a comprehensive communication plan,32,Communication Plan,Communication of Core Values to ALL employees Core Values statement Video from CEO Divisional briefings Incorporate into orientation for new staff Incorporate into Performance Management training via com

25、petency model,33,Performance Management,Using the Balanced Scorecard approach, we helped develop the organisation scorecard develop the departmental scorecards define the performance targets Developed a competency model based on Core Values Performance management training for all employees,34,Recogn

26、ition Programs,Bonuses/Incentives,Individual Merit,Base Pay,Benefits,Performance Results-Related Programs,Core Programs,Stock,Total Rewards Strategy,35,Culture Development Initiatives,36,Leadership Development Plan,“Leaders walk the talk.”,In any change initiative, the critical point is to give peop

27、le the competencies 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.,37,Learning and Development Plan,LEARN

28、ING AND DEVELOPMENT 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

29、 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.,38,Teams 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 measures physical environment organizational structure HR culture teams can address these issues: staffing and selection training and development ceremonies and events rewards and recognition,Culture Dev