Transcript Slide 1

Global network
of innovation
Management of Post Merger
Integration Projects
Global network
of innovation
Failure Rates of Mergers: Overview empirical studies
General Analysis
100%
Consulting
Specific Analysis
Science
85%
83%
79%
78,5%
80%
72%
75%
71%
61%
63%
60%
69%
62%
56%
50%
47%
40%
40%
20%
Mercer
1996
Bain
1997
McK
1987
Porter Harbison
1988
Silver
1984
IMA
2000
Europ. Cross
Deals Border
KPMG
1998
Merger
Cross
of Equals
Border J.P. Morgan
IMA
1998
2000
MoE
IMA
2000
Bank
Hayes
1998
Global network
of innovation
Problems and Reasons for Failure
Problems identified in Post-Merger
Integration
Percent o f Respondents
Insufficient communication
58%
Financial/ synergy expectations
unrealistic or unclear
47%
Compromises in new organization
structure
47%
„Master Plan“ missing
37%
Missing momentum
37%
Lack of top management commitment
32%
Unclear strategic concept
26%
Missing pace of project
IT i ssues adressed too late
Source: A.T. Kearney
26%
21%
Global network
of innovation
Studies show:
PMI is the weak point in M&A management
Main problem areas in M&A management*
Strategic
Analysis
Transaction
* Example from: Boston Consulting Group: Multiclient study
Integration
Global network
of innovation
Integration Steps
BUILD
KEY ACTIONS:
• Evaluation of organizational models and selection of the Future Mode of Operations
• Determination of the prime and supporting process model in the context of a superior
process model
• Validation of existing processes and adjustment where necessary
• Determination of the concept for the implementation of the process model (incl. Quick Wins)
• Refinement and agreement on roles, responsibilities and competencies (incl. P&L)
• Development of action plan for the set up of structural elements with regards to portfolio,
employees, management of employees and ressources
• Definition and development of the target agreement system and the respective controlling
requirements
Global network
of innovation
Integration Steps
BUILD
KEY ACTIONS (cont.):
• Mission critical: Detailled project plan and dedicated project organization
• Implementation of work and project teams:
- strategic:
Countries, Production Sites, Brand- and Productportfolio
- operational: R&D, Delivery, Logistics
- central:
Finance & Accounting, IT, Law and HR
• Development of an internal and external communication concept/plan
• Define milestone and benchmarks to ensure and to proof the realisation
of synergies and to ensure the compliance with the transformation plan
THIS IS ONLY A PARTIAL VIEW OF THE FULL DOCUMENT. THE REMAINING PAGES ARE
INTENTIONALLY NOT SHOWN. THEY ARE SHOWN ONLY IN THE MEMBERS DOWNLOAD AREA.
HOW TO CRUSH IT – DELIVER A+ WORK
1.
2.
3.
4.
5.
6.
7.
8.
9.
Download the full unrestricted template(s) from the members area
a. Use more than one template alternative to cover all the angles
b. Cut and paste from each to produce one unique to your situation
Determine the thought areas that are critical for delivering excellence
For the “excellence areas” do a competitive benchmarking assessment by using the market research
and market intelligence tools
a. State of the industry – current status and trends
b. State of the competition – existing, new, and those in related markets
c. State of your company – get honest internal and external views
From analysis of the data in #3, develop alternative options
a. Out of the box thinking – use the creativity tools to generate unique ideas
b. Test them and get input and feedback – use the collaboration tools to add value from others with
different perspectives
c. Narrow down to the best option for the “excellence areas”
Complete the template using the best “narrowed” down option
Develop eye catching reports that communicate your results very well and cause reviewers to be
awed by its quality
a. Use the designer power point graphics
b. Use the designer excel charts
Ask for help at any point in the process – contact us online or offline.
Present your report and receive praise for its comprehensiveness and creativity. You are now viewed
as different from the pack.
Get bigger rewards, be in demand, and field better opportunities. Use the personal growth tools to
get the edge.