【正文】 E) 5 Corporate culture is identified as one of the most important integration issues Source: Watson Wyatt Worldwide MA Survey, November 1998 Activities required for “successful” integration Downsizing Redeployment of workers Recruitment of new staff Retraining workforce Alignment of p 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% 6 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 MA Survey, November 1998 7 Reasons for successful integration Source: Watson Wyatt Worldwide MA Survey, November 1998 Percentage of panies citing reason for success 8% 41% 31% 37% 52% 70% Shared responsibility of costs involved Early mgt of “What will happen to me?” employee issues Cultural patibility Mutual agreement of road map by partners Expedient integration Well planned munication throughout the deal process Leadership 0 10 20 30 40 50 60 70 80 90 100 35% 8 Additional 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 to be a major factor in M A failures. ? 1997 ( Kearney) : reviewed 155 M A deals and determined most failures to be peoplerelated. ? Hewitt Associates 69% of respondents in 162 anizations involved in M A reported the top challenge to be integrating two anizational cultures. 9 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 10 Organizational Effectiveness Levers Career Development Performance Management Staffing Compensation, Benefits Rewards Employee Communication Organization Design Structure Business Strategy Aligned Culture Leadership Effectiveness 11 Agenda M A Statistics A Case Study WW’s Approach to Cultural Integration What is Culture? Q A 12 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” 13 Reflects “What is tangible”, .