Robin Andrews Desiree Sylvester T22

7/31/2019 Robin Andrews Desiree Sylvester T22

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2004 Hewlett-Packard Development Company, L.P.The information contained herein is subject to change without notice

Keepingemployeesengaged and

focused duringtimes of change

Robin Andrews & Desiree Sylvester

June 28, 2005


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HP Confidential 2

HP overview

Founded in 1939 by Bill Hewlettand Dave Packard

Headquartered in Palo Alto,California

Leading technology solutions

provider to consumers,businesses and institutionsglobally

HP revenue totaled $83.3 billionfor the four fiscal quarters ended

April 30, 2005 150,000 employees in 170+

countries Ranked No. 11 in 2004 Fortune

500


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HP Confidential 3

In the headlines

HP Names NCR's Hurd as New CEO

Merger Will Make HP a World Giant

Fiorina Steps Down as Hewlett-Packard CEO

Hewlett-Packard's Profits Disappointing

HP Is Stuck In The Middle Of Competitive Market


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HP Confidential 4

Change is constant

HP/Compaq merger: May 2002

Realignment involving more than HP employees: May 2004

Goal to improve customer focus,growth, simplification

3 CEOs in 35 business days

February 9: Carly Fiorina steps down Bob Wayman named Interim CEO

March 29: Mark Hurd appointed newCEO

Change


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HP Confidential 5

Communication Balance focus ondelivering day-to-daybusiness vs. change

Manage leaks in themedia

Everything saidinternally was expectedto be shared externally very difficult to give

employees additional oradvance information

Communication challenges


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HP Confidential 6

Critical success factors

Develop detailed, ongoing communicationstrategy and plan: Ensure leadership is committed to consistent

communication throughout process

Focus on face-to-face communication Continually survey employees to monitor pulse

Provide employees with ability to ask any question, anytime

When surfaced, share issues up the line to the verytop


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Communications during M&As

Communications are,without question, the firstand most importantorganizational activity thatshould be carried out after

public pronouncement ofthe transaction Acommunications programis one of the mostimportant stepsmanagement can taketoward expeditiouslymelding tow companies.

Winning at Mergers and

Acquisitions

What makes some mergersfail while others succeed?The research published onthis subject over the past30 years yields a checklist

of points, (one of thembeing) do buyers andsellers have an effectivecommunications programin place to help theintegration process?

The Art of M&A: A MergerAcquisition Buyout Guide



Poorcommunication

Poormanagement

Business

issues or other

Culture-related issues

People and culture are at the heart of integration work

Source: The Art of M&A Integration, industry literature, Roffey Park

Management Institute, McKinsey

People issues account for nearlyhalf of merger failures

Percent of responses

Corporate cultural

clashes

Lack ofemployeesupport

31%

21%22%

19%

7%


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Merger communications plan



Realignment communications plan

Central PMO established to executeinternal communications plan on aglobal basis

Realignment website 296,000 homepage views

1,777,000 views during 6 months

Pulse survey results showedunderstanding and support increased11% from January March

Plan



Interim CEO Communications Plan

Provided 2-way communicationopportunities for employees

Developed a clear messagingplatform focusing on execution,serving customers and improvingcompany performance

Expanded CEO and EC/seniorleader outreach



Introducing a New CEO

Integrated program management office (PMO) forannouncement

CEOs first employee broadcast most watchedweb cast ever

30/60/90 day internal communications plan Connecting CEO with employees No. 1 priority

Next up is communicating Marks vision for HPs

future



Deconstructing commitment

Commitment consists of two components, rationaland emotional

Employee engagement framework

Source: Corporate Leadership Council, Driving Employee Performance and Retention Through Engagement, Washington, D.C.: Corporate Executive Board, 2004

Engagementdrivers CommitmentIntent to stay/leave

Discretionaryeffort

Retention

Performance

Rational commitmentThe extent to whichemployees believe thatmanagers, teams ororganizations are in their self-interest (financially,developmentallyor professionally).

Emotional

commitmentThe extent to whichemployees value, enjoy,and believe in their

jobs, managers, teamsor organizations.



Employee engagement

Redesigned Feb 2004 replacecompetitor cameras with HP More than 350 entries every month 35% increase

In top 10 hpNOW stories eachmonth average 27,000 views

Created 2005 calendar based onemployee feedback

Launched Aug 2004 Employee voice & communityAddresses readership survey

request: provide a space foremployee contribution

47,500 views each month

Launched Sept 2004

Internal awareness/pride campaign

Includes history, photos, video

In top10 hpNOW stories eachmonth - average 60,000 views

Monthly photocontest

HP Garagerestoration

YOU +hpNOW



Engaging employees in the brand

Special promotions offered at up to35% off including TVs, digitalcameras, printers

Increase employee purchases morethan 400%

Create HP brand ambassadors

Photo contest using HP camerasAwarded special-edition Stratocaster

guitars

1,200 entries, 156,000 views to photogallery

Enhanced EPPdiscounts

Fender +hpguitar contest

Science of Printing Partnered with Imaging & PrintingSupplies group to equip employeeswith information on why HP ink, tonerand media are better than thecompetition

More than 50,000 views 4,000+ entries to quiz/contest 94% committed to sharing the message with

friends/family



Employee clicks Ask HPlink on portal

Ask HP

Results Received over 1000 employee questions,

suggestions and messages since Sept.04

Average response time less than three

business days User participation varies by region:

72% Americas

17% Europe and the Middle East

11% Asia-Pacific and Japan

Received over a hundred suggestions fornew products, new features, and costsaving suggestions

User satisfaction survey indicated that80% found the system to be valuable,

would use it again, and wouldrecommend it to others



Transforming InternalCommunications

2001 2002 2003 2004 2005

Employeeandleadership

engagement

Two-waycommunications

Alignedcommunications

Basiccommunications Direct, one-way

communications

Solid, basic tools

Limited feedback from

employees

Recognized strategicimportance of IC

Established InternalCommunications ProgramManagement Office

Coordinated messagingacross HP

Increased IC effectiveness

Engaged Senior Leaders askey communicators

Launched centralized website,regular newsletter and toolsenabling managers tocommunicate more effectively

Expanded strategy coverage Employee feedback channels

Developed communications tools toempower employees to better meetcustomer needs

Established horizontal and verticalcommunications

Integrated strategy, brand, culture,and communications

Initiated benchmarking to measureROI

Today:Acceleratinggrowth Synchronized with HR Integrated into leadership

development Designed to strengthen

employee engagementand build culture ofexcellence

Evaluated againstservicemetrics and TCE

Accelerating growththrough strategiccommunications

Continuous communications



2005 awards to date

IABC Gold Quill Award

IABC Silver Quill Award

Dalton Pen CommunicationsAward of Excellence

Dalton Pen CommunicationsAward of Merit

Summit Creative Silver Medal

U.S. International Film andVideo Festival Silver Screen

Award

CINE Golden Eagle Award

Melcrum StrategicCommunication Management

Business Performance Award



2004 awards

Dalton Pen CommunicationsAward

IABC Gold Quill Merit Award

Ragans Top 10 Employee

Publications Awards

U.S. Intl Film and Video Festival

Chicago Film Festival

CINE

ASPC

Magnum Opus


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Q&A


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Documents

Robin Andrews Desiree Sylvester T22