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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 to be a major factor in M amp。 A failures. ? 1997 ( Kearney) : reviewed 155 M amp。 A deals and determined most failures to be peoplerelated. ? Hewitt Associates 69% of respondents in 162 anizations involved in M amp。 A reported the top challenge to be integrating two anizational cultures. 10 How integration is handled will make the difference between success or failure ... ? Earlier realization of financial “deal” goals (. cost synergy, strategic initiatives) ? Protect productivity ? Maintain customer focus ? Smoother transition ? Employees are focused on their jobs and not on personal issues 11 Organizational Effectiveness Levers Career Development Performance Management Staffing Compensation, Benefits amp。 Rewards Employee Communication Organization Design amp。 Structure Business Strategy amp。 Aligned Culture Leadership Effectiveness 12 Agenda M amp。 A Statistics A Case Study WW’s Approach to Cultural Integration What is Culture? Q amp。 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 anization (Longman) ? The set of important assumptions that members of a munity share in mon ( Schein) Simply put : “ Corporate Culture is the way you do things in your anization” 14 Reflects “What is tangible”, . ? Organisational structure amp。 processes ? Policies amp。 procedures ? Physical environment Reflects the “Way we do things”, . ? Degrees of collaboration ? Decisionmaking patterns ? Approaches to process improvement Components of Culture Values have little meaning unless they bring about specific behaviors ... VISIBLE Core Values Behaviour INVISIBLE attitude 15 Implementation Plan The implementation plan will enpass initiatives to create and support these behaviors. Core Values Behaviour The best way to achieve culture change is to focus on desired behaviors ... 16 Agenda M amp。 A Statistics A Case Study WW’s Approach to Cultural Integration What is Culture? Q amp。 A 17 Our Approach to Cultural Integration Perform Gap Analysis Design Desired Culture Top Team Workshop Validation/ Ownership Customer Strategy Assess Current Culture Interviews Focus Groups Culture Audit Business Objectives DISCOVER Defining Organizational Culture Implement Culture Change Programs Training Org. Dev. Communication Measurement DELIVER Reinforcing Organizational Culture Knowledge sharing, involvement, and munications Develop Culture Change Programs Leadership Development, Culture Change Teams amp。 Learning amp。 Development INVENT Developing Organizational Culture 18 Agenda M amp。 A Statistics A Case Study WW’s Approach to Cultural Integration Wh