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ation (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。 Rewards Employee Communication Organization Design amp。 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 to be a major factor in M amp。 ben prog Labor relations Managing resistance Integration of corporate cultures Retention of 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 inpatibility 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 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 petencies 75% Percentage of panies citing the type of information gathered during due diligence Source: Watson Wyatt Worldwide Mamp。 A Survey 1998 (190 CEOs, CFO, Top Executives) ? 75% are clearly disappointing or outright failures Source: Watson Wyatt Worldwide Mamp。 A 3 Agenda M amp。 A Statistics A Case Study WW’s Approach to Cultural Integration What is Culture? Q amp。 People’ Issues Often Present the Biggest Challenges “The hard stuff is easy it’s the soft stuff that’s so hard to change.” Frederick Smith CEO, Federal Express 5 Watson Wyatt M amp。A Survey, November 1998 Activities required for “successful” integration Downsizing Redeployment of workers Recruitment of new staff Retraining workforce Alignment of p amp。 A Statistics ? 1992 (Coopers 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。 A Statistics A Case Study WW’s Approach to Cultural Integration What is Culture? Q amp。 A Statistics A Case Study WW’s Approach to Cultural Integration What is Culture? Q amp。 A Statistics A Case Study WW’s Approach to Cultural Integration What is Culture? Q amp。 and employees39。 Development Plan ? Identify anisational development needs ? Develop learning and development plans that link to business and strategic obj