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.