××公司合并和获得的文化整合的重要.ppt

14 March 2002, Shanghai
Kwan Chee Wei
Director Human Capital Group
Watson Wyatt Singapore
The Importance of Cultural Integration in Mergers and Acquisitions
Agenda
M & A Statistics
A Case Study
WW’s Approach to Cultural Integration
What is Culture?
Q & A
2
Agenda
M & A Statistics
A Case Study
WW’s Approach to Cultural Integration
What is Culture?
Q & A
3
‘Cultural & 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
4
Watson Wyatt M & A Survey 1998(190 CEOs, CFO, Top Executives)
75% are clearly disappointing or outright failures
Source: Watson Wyatt Worldwide M&A Survey, November 1998
50% suffer an overall drop-off in productivity in first 4-8 months
47% of pany executives leave within the first year; 75% within the first three years
“People problems” are cited as the top integration failure factor by a sample of 45 CFOs from Fortune panies who have recently merged/acquired
Only 23% of all acquisitions earn their cost of capital
On average, management grade the financial performance of their alliances as a “C minus”(on a scale of A to E)
5
Corporate culture is identified as one of the most important integration issues
Source: Watson Wyatt Worldwide M&A Survey, November 1998
Activities required for “essful” integration
Downsizing
Redeployment of workers
Recruitment of new staff
Retraining workforce
Alignment 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%
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Cultural patibility 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
Workfo