Energising through
change –
An opportunity for HR
Mike Taylor
Director, UK and Ireland Human Resources
© 2004 Hewlett-Packard Development Company, L.P.
The information contained herein is subject to change without notice
Agenda
• Change management strategy
• The HP/Compaq Merger – a change story
• HP’s People Strategy
• Stabilize: Building the new HP foundation
• Mobilize: Creating a high performance workplace
• Energize: Creating the Best Place to Work
• Discussion
2
“By any objective measure, the amount of
significant, often traumatic, change in
organizations has grown tremendously in the last
2 decades. Although some people predict that
most of the reengineering, restrategising,
mergers, downsizing, quality efforts and cultural
renewal projects will soon disappear, I think that
is highly unlikely."
John Kotter – Leading Change
3
Reasons why change initiatives fail
1.
“Allowing too much complacency” – Not creating a
burning platform for change
2.
“Failing to create a sufficiently powerful guiding coalition
– not driving the change from the top”
3.
“Underestimating the power of vision”
4.
“Failing to create short term wins”
5.
“Under communicating the vision”
6.
“Neglecting to anchor changes firmly in the corporate
culture”
7.
“Permitting obstacles to block the new vision”
8.
“Declaring victory too soon”
4
Group discussion
•
What in the merger story needs clarification?
•
What evidence is there of the change initiative
avoiding Kotter’s pitfalls – or falling into them?
•
What lessons can you learn for your own
change initiatives?
5
6
Merger proposed September 2001
Merger approved May 2002
Merger Finalised in the UK&I Feb 2003
7
Change is an opportunity
that you can influence
and if then managed
correctly, it will energize
an organization.
8
Planning for change
• A “clean
room” was established in September 2001
to plan for the merger
•
This consisted of a team of dedicated employees from
both pre merger companies
•
Legal training to comply with competition law
•
Over 500 people producing over 1 million hours of
work to prepare for the merger
9
the new hp
• On day one of the new company 30,000
employees of the new HP were trained and
ready to serve customers
• The new hp.com website was available in 21
languages in 72 countries
• Over 2 million hits in the first two weeks
• Clear product roadmaps and transition plans
were delivered
10
IT infrastructure
• 150,000 employees could log on to their respective
networks and accounts from either pre-merger
Compaq/HP sites and send e-mail to all pre-merger
employees
• All employees could traverse pre-merger cross-company
networks to view each company’s pre-merger employee
portal
• The hp portal became our primary means of
communicating merger related information receiving
over 2 million hits on day one
11
Organization culture
• Research was done in the clean room to establish
current
organizational culture in the pre-merger companies
• A cultural framework for the new company was created
• Mechanisms to communicate the new framework
included:
o The HP portal
o Poster campaigns
o E - learning
o Face to face briefings
o Fast start workshops
12
It began in a garage and a pie shop
We have a long standing culture that makes HP a great place to
work. We aim to be the most trusted partner in the industry.
HP values
We act with speed and agility
• We are passionate about customers
• We deliver meaningful innovation
• We have trust and respect for individuals
• We achieve our results through teamwork
• We conduct our business with uncompromising integrity
• We perform at a high level of achievement and contribution
13
Fast start workshops
• Fast start sessions were one to two day business
meetings for newly appointed intact teams.
• They took place within 30 days of the team’s
appointment
• They were a communication vehicle for transmitting,
interpreting, and incorporating information about the
New HP strategy, organization model, brand,
culture, and transition plan.
• Fast start sessions are intended to accelerate
leadership readiness.
14
The need for a change
management strategy
• Managing the cultural change after the merger
between HP and Compaq was essential for the
success of the merger
• The challenge for HR was to develop a strategy to
maintain and surpass the pre-merger standards of
both companies and to manage this cultural
change process
• HP’s People Strategy enabled us:
•
•
•
To speed up and smooth the process of change
To move through the initial change period
To set a culture of high performance right from the start
15
The HP People Strategy is
aligned to our corporate
objectives and values, aiming
to maintain employee
commitment, especially in this
time of change.
16
HP’s People Strategy
Best Place
to Work
Energize
High Performance
Workplace
Mobilize
New HP Foundation
Stabilize
17
Building the new HP foundation
Build New HP Foundation
Stabilize
18
Building the New HP Foundation
org design
& selection
total
rewards &
MRU
benefits
design
Fast Start
culture
cornerstones
organization
implementation
&
effectiveness
workforce
reduction
–
job titles
–
job levels
–
pay/bonus
mix
–
structures
benefits
–
retirement
–
time-off
–
health
19
Developing a High Performance
Workplace
High
Performance
Workplace
Mobilize
New HP Foundation
Stabilize
20
Developing a High Performance
Workplace
The high performance culture accelerates future
growth by:
•
Maximizing organizational/individual productivity
and capability
•
Aligning individual performance with company and
business objectives
•
Using rewards as the motivator
•
Develop people through effective coaching,
performance feedback and development planning
21
Accelerating a High-Performance Workplace:
Integrating the “WHAT” and “HOW”
balanced scorecard, HP values and supporting behaviors
22
Creating the Best Place to Work
Best Place
to Work
Energize
High Performance
Workplace
Mobilize
New HP Foundation
Stabilize
23
Creating the Best Place to Work
HP’s new culture is guided by a core set of ethics
that:
•
Drives progressive work-life programs
•
Listens to its employees and acts on what we hear
•
Provides all employees with tools, resources and a
supportive environment that values diversity and
inclusion
24
Creating the Best Place to Work
Work/life balance at HP
HP’s flexible work arrangements provide
employees with alternatives to:
•
Working the traditional five day a week work schedule
(Monday-Friday) and/or
•
Working solely from an HP facility or office location
25
Creating the Best Place to Work
HP listens to its employees and act on what we
hear:
•
The annual “Voice of the Workforce” survey evaluates
employee commitment, identifies areas for improvement
and issues that employees consider important.
•
Based on the results of this survey, managers will develop
action plans to address areas of improvement.
•
HP’s Open Door Policy is based on the value of trust and
respect for the individual
26
Progress report: Revenue and EPS
$20,000
$0.40
$19,500
$0.35
$19,000
$0.30
$18,500
$0.25
$18,000
$0.20
$17,500
$0.15
$17,000
$0.10
$16,500
$0.05
$16,000
$0.00
3Q02
4Q02
1Q03
2Q03
3Q03
4Q03
1Q04
2Q04
3Q04
Revenue $16,536 $18,048 $17,877 $17,983 $17,348 $19,853 $19,514 $20,100 $18,900.
EPS
$0.14
$0.24
$0.29
$0.29
$0.23
$0.36
$0.35
$0.34
$0.24
27
Group discussion
•
What in the merger story needs clarification?
•
What evidence is there of the change initiative
avoiding Kotter’s pitfalls – or falling into them?
•
What lessons can you learn for your own
change initiatives?
28
Lessons learned
•
Prepare for the change as well as you possibly can
•
Communicate concisely and frequently
•
Listen to your employees
•
Implement as quickly as you can
•
Don’t over complicate
•
Focus on your customers
• Accept
that it won’t be perfect
29
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