HP has recently gone on a buying spree of companies, acquiring thirty-five companies within the past five years. Though there is nothing wrong with using acquisitions as a means to expand the business, managing these changes needs careful attention. When dealing with acquisitions, the compatibility of the company cultures becomes a big concern, and the problem of culture-clash often surfaces. For example, HP announced that it completed the acquisition of Arcsight Inc., a security and compliance management company, on October 22, 2010.
ArcSight is known for its friendly, supportive and inspiring corporate culture and relatively low power distance between the management and the rest of the company. It was ranked as one of the top workplaces in the Bay Area by Bay Area News Group based on anonymously conducted employee surveys, due to its excellent working environments and innovative workplace atmosphere. While HP focuses on putting “customers first”, and is more interested in results and efficiency compared to ArcSight, there exist some similarities as both companies focus on innovation and team work. Clearly, if HP does not manage this conflict carefully, serious consequences such as decrease in productivity and employee satisfaction can occur. Therefore, I believe that it’s absolutely essential to assimilate the Arcsight culture into that of HP.
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