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Unformatted text preview: 30 p. 20 company. From a personal perspective, only the naive are completely unafraid. It
is intimidating. They know that it’s going to be hard. It’s very straining. You
have a new manager, potentially. Perhaps you’ll be the only HP person in a sea of
Compaq or vice versa. Employees in both companies were very nervous, even
though I think the majority was absolutely in favor of biting the bullet and making
We studied a lot of mergers, again from a cultural, as well as from a productivity
perspective, and one of the things that we saw in pre-merger Compaq from both
the Digital and Tandem acquisitions were what I fondly call “gang colors” or
“badges of honor.” Six years after an acquisition, people still proudly displayed
their old heritage badge. So we made badges and signage a priority. We made
other statements too, such as total alignment on e-mail addresses, full alignment
on the enterprise directory so you could now search for everybody. A lot of the
feedback we got from employees was very positive on things like that. These
things do not fundamentally affect productivity, but they are as important as
actual operational functions.
EFFECTIVENESS OF THE INTEGRATION EFFORT
An accomplishment that HP executives are particularly proud of is the fact that the company was
ready to operate as one from the first day the merger took effect. Product lines were selected or
dumped, corporate systems were operational, signs were changed, e-mail was set up, badges
were issued, all of the things, big and small, that had to change were accomplished by day one.
The only exceptions were tasks that could not, under local statutes, be changed so quickly, such
as job cuts in countries that required long lead times to employment reductions.
Looking Back in 2004
The company’s top and senior executives seemed to feel that the organizational integration of HP
and Compaq had been a success. Chris Morgan, vice president and in charge of worldwide
marketing for the Imaging and Printing Group, said:
When the merger happened, we were very quickly able to integrate the Compaq
assets in the consumer space. For example, there were the new distribution
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This document was uploaded on 02/16/2014 for the course MGMT 237 at UPenn.
- Spring '14