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Zhengyu Gui – Hewlett-Packard

by on October 2, 2007

Hewlett-Packard (HP) is a leading global provider of products, technologies, solutions and services to consumers and business. The company’s offerings include information technology infrastructure, personal computing and access devices, global services, and imaging and printing. In May 2002, the merger of HP and Compaq Computer Corporation, the largest tech merger in history, forged a dynamic, powerful team of 140,000 employees serving more than one billion customers in 160 countries. For fiscal year 2002, the combined companies reported revenues of $72 billion.

Change Initiatives Effort
HP was challenged to immediately begin integrating the operations of the two companies to achieve economies of scale, reduce the cost and complexity of information technology systems for business and improve the overall experience customers have with technology. The integration process was performed on country-by-country basis.
In Norway, both HP and Compaq had facilities in Oslo and between them, employed 450 people. Immediately after the merger, HP established shared management teams and reorganized processes and functions to support “the HP way”, a shorthand expression for the core values of the company. Throughout the transition, HP Norway’s executives were very focused on understanding current employee behaviors and acknowledging where changes needed to occur to achieve the vision of a unified HP whose new business model would enable the company to dominate its markets. These executives further recognized that the real challenge of integration would come when the company formally merged its people and resources into one new, shared facility.
HP Norway sought help from Accenture in making sure that its integration would go as smooth as possible. Accenture quickly assembled a team to help the company design, implement and manage six distinct activities, over a period of three months:
– HP Norway and Accenture created and distributed a tailored Web-based survey to all employees to reveal cultural characteristics, differences between the ex-HP and ex-Compaq workforces, attitudes toward the integration and areas of potential risk.
– Defining focus areas. Based on the results of the survey, both parties identified potential areas of resistance during the integration process, craft messages and define activities to promote and secure the effective cooperation between employees.
– Integration portal. HP Norway and Accenture developed a one-of-a-kind integration portal, in order to answer any questions employees might have about the integration process and the office relocation. The portal was integrated with HP Norway’s existing Website and internal Web-publishing tools.
– Office relocation event. The two parties created a transition on the day of the office and workforce relocation. The team made sure that “info butlers” and technical support resources were on site to guide employees on arrival, answer any questions they might have throughout the day and solve any setup problems immediately. The team also set up “base stations” on site to encourage the HP and Compaq groups to meet and interact with each other.
– Project support for HP management team. Accenture helped develop and execute the plan, tools and checklists for detailed project control and also identified high-risk areas and possible consequences.
– Creative concept. Accenture also helped to develop a creative concept to help communicate the critical issues and messages related to the integration. Using a popular local comedian, Accenture created a series of highly entertaining videos, which were available via internet over the three-week period prior to the relocation, that explained the core values and new rules for the HP organization.

Outcomes
HP Norway made smart choice to acquire help from Accenture, it completed one of the most successful relocations in history and, more important, maintained its marketplace momentum during the move.
In addition to improving employee satisfaction and maintaining a unified image for its customers, HP Norway also achieved significant financial benefits from the well-executed move. Combined, the efficiencies have resulted in nearly $720,000 in cost savings.

References:
Managing Change at HP Norway. 2003 Accenture

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