HP Compaq Merger 1
HP Compaq Merger 1
HP Compaq Merger 1
Hugo Bagué
Vice President, EMEA Human
Resources
HP EMEA
• The opportunity
• Achieving success: doing our homework
• Managing a rigorous pre-close process
• Preparing for launch day
• Creating the post-close integration structure and
processes
• Where HP stands today
• Any open questions
*sources: “Lessons From the M&A Front: The Morning After” Deloitte Consulting Report (1999); “Why Mergers Fail” McKinsey Quarterly (2001); “Not All M&A’s Are
Created Equal – and That Matters” Harvard Business Review (2001)
*sources: “Lessons From the M&A Front: The Morning After” Deloitte Consulting Report (1999); “Why Mergers Fail” McKinsey Quarterly (2001); “Not All M&A’s Are
Created Equal – and That Matters” Harvard Business Review (2001)
New HP vision
We create a great new company that is a leader in our chosen fields
and is positioned to be the leading overall IT solutions provider
Finance
Human resources (includes organizational design and selection)
Brand architecture
Communications – organization
HP labs
Real estate
CTO
e-inclusion and community engagement
.com/e-commerce
Government affairs
Culture
Closing/antitrust (legal)
Global functions infrastructure
Program
specific
Strategy
• Strategic priorities
• Go to market strategy
• Portfolio
• Channel strategy
Sample input
• Newco exec Structure
Strategies
culture session & process
• HP historical
• CPQ historical
• New HP brand Corporate
• Competitive objectives
environment
• Customer
Metrics &
Behaviors Values rewards
Sample output
• Vision & governance
for new company
• Balanced scorecard
& pay metrics
• Leadership selection
• Formation & start-up
Policies & of new teams
practices • Customer (quality)
initiatives
• FastStart program
March 4, 2004 Managing a Smooth and Successful Integration page 19
Preparing for launch
Mailboxes
Weekly email volume 229,000 Number of countries
24 million >160
Steering committee
Central merger
integration office
Deal close
March 4, 2004 Managing a Smooth and Successful Integration page 29
EMEA High Level Integration Structure Implemented
• Strong central design management – Clean Room & IPORs plus clear targeting
• There are 2 main elements to the integration structure implemented;
– Cross Business Group / Infrastructure
– Business Group Specific
PSG
PSG IPG
IPG ESG
ESG HPS
HPS
Cross
CrossBG
BG
Infrastructure
Infrastructure
(HR, Fin, IT etc)
(HR, Fin, IT etc)
Managing Cultural
Change
March 4, 2004 Managing a Smooth and Successful Integration page 35
Managing Cultural Change
Change is an opportunity
that you can influence, and
when managed correctly
it will energize an organization
High Performance
Workplace
Mobilize
New HP Foundation
Stabilize
• Speed is essential
• Act early
• Encourage face-to-face interaction
• Be pragmatic
• Choose a cornerstone for the new organization
• Speed is essential
– Clear, regular and open communication
• Act early
– Involvement of management and employees from the very
beginning
– “Clean Room” teams discussed the design and culture of
the new organization
• Be pragmatic
– “Adopt and go” methodology
High Performance
Workplace
Mobilize
New HP Foundation
Stabilize
Best Work
Environment
Energize
High Performance
Workplace
Mobilize
New HP Foundation
Stabilize