Integration PPT (OD)

8/9/2019 Integration PPT (OD)

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Organization Development

Integration Managers

BY:

Hanish Soni

Krishna Nayak

Sadiq


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Less than half of all mergers and acquisitions everreached their promised strategic and financial goals, yet

companies spent more on it.

Its not easy to navigate the rocky territory that twoorganization must cross to become one.

Thats why smart companies are appointing a new andunique kind of managers

Its virtually impossible to disconnect and reconnect thetwo companies completely and perfectly from the start.

So an integration manager cannot be wedded toperfection and bound by rigid project management tools.


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Integration manager shepherds everyone through the rocky and

often uncharted territory that two organizations must cross

before they can function as one.

But this leader also needs Some traditional organizational

Strengths: world-class project management skills, a deep

understanding of the parent company, and enough clout to be

effective.


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We found that integration managers help the

process in four principal ways:

y They speed it up

y Create a structure for it

y Forge social connections between the two

organizations

y Help engineer short-term successes that produce

business results.


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A JOB WAITING TO BE DEFINED

Johnson & Johnson $3.7 billion acquisition of DePuy

Incorporated.

Bill Quinn - Integration manager

Main objective: Thorough knowledge.

In many ways, the role of the integration manager is

more akin to an entrepreneurial job in a start-up companythan to a position in an established organization.


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First Challenge: To define his or her problem.

y Quinn spent 2 weeks understanding and gaining speed.

y Interviewing key executives

y Gain knowledge about industry and acquisition

y Talk to managers from past few acquisitions

yMeeting consultant and business development people whoworked on this deal


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Second Challenge: Peoples emotions

y Ensure right things were done.

y Not hurt peoples feelings.


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LIFE ON FAST FORWARD

General Cables $1.8 billion acquisition of BICC (BritishInsulated Callender's Cables)

Jodi Mahon integration manager

Main objective: Move the integration process forward as fastas possible so the new company could get a running start theday after the deal is closed.

Two critical periods in the life of most acquisitions:

y Time of announcement of deal and its closure.

y First 100 days after the deal is closed.

Mahons role is to move everyone as quickly as possiblethrough this two deadlines.


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CHALLENGES

Time of announcement of dealy Her job was straight forward working with an integration team

to identify the critical elements that needed to be placed by dayone

Management team had not finalized structure oforganization (business unit) and leadershipassignments.

Culture clash with respect to speed.

Negotiations and agreements.

First 100 days after the closure of deal

y Achieve $12 million annualized cost savings from

north American operations


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PUTTING THE CHAOS IN ORDER

Lucent Technologies bought Ascend

Communications for $20 billion

Ernie Rodriguez integration manager

Main objective: Lucent expected to gain talented

people and critical products.

y Creating a road map to help people see the workahead in a logical and achievable way.


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CHALLENGES OVERTAKING PROCESS:

Set up of teams of people from both organizations to address4 key issues:

y Customers

y Product solutions

y People

y Administration

Addressing issue of having as many systems up as possible

on the day the deal was closed.

Simulation and testing of scenarios during the merger

period.


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BUILDING THE SOCIAL

CONNECTIONS

Texas Instrument $1.3 million acquisition of Unitrode.

Brian Bonner integration manager.

Main objective: Integrate Unitrode into TIs analogue products business, so Unitrodes people needed to

understand and adopt all of TIs key business processes

and HR processes.

Job role: Identify the right senior people from both TI and

Unitrode to look at larger strategic issues, revenue goals,

brand strategies and product development.


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CHALLENGES

To match the right levels of TI experience and knowledge withthose of Unitrode.

Correcting misconceptions and coach people on how to handle

things.

Unitrodes concern was about having a new boss and playing

by unfamiliar rules.

Face to face focus groups were conducted.

Language and vocabulary filter. Explanation in TI-speak and

understanding with language filter.

Success was dependent on tightly coupled functioning while

maintaining unique cultures in separate locations.


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GETTING EARLY RESULTS

Meritor automotive acquisition of Volvo heavy axle

plant.

D

aveD

ernberger integration manager.

Main objective: launch several projects that could achieve

business results in 100 days or less. 10 high priority

initiatives that could demonstrate the benefits of being part

of the meritor global supply system that brings differencein first year.


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CHALLENGES

Shifting of mind-set.

y

Outsourcing of specific component which was newto Lindsbergs management and staff.

y Marketing some of Lindenbergs unique heat

treating capabilities to other Meritor plant.


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WHO CAN DO THIS JOB?

Takes special combination of skills.

Deep knowledge of the acquiring company example:A Job Waiting to Be Defined

Whom to talk to

It is impossible for someone from the acquired sideto deal to know enough about the parent companys

formal and informal expectations for the merger

and for managers.


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No need for credit example: Life on Fast Forward

Integration managers have to be tough and

unbending with staff and managers

Sometimes empathetic listeners

Good integration manager knows which style is

appropriate in which situation.


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Responsible independence example: all examples talk

of initiation

Anyone selected for this job need to take initiatives

and make independent judgements

Winning trust of senior executives is important.

Emotional and Cultural Intelligence example: Building

the social connections

Appreciation of emotion and cultural issues, handlingthese issues personally and help others deal with

them constructively.


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WHAT INTEGRATION

MANAGERS DO?

A. Inject speed

Ramp up planning efforts. Example - Jodi Mahon

Accelerate implementations. Example - Jodi Mahon.

Push for decisions and actions. Example - Brian

Bonner

Monitor progress against goals and pace the integrationefforts to meet deadlines Example Dave Dernberger


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A. Engineer success

Help identify critical business synergies - Brian

Bonner

Launch 100 day projects to achieve short term

bottom line results Dave Dernberger

Orchestrate transfer of best practices between

companies - Bill Quinn


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Make social connections

Act as travelling ambassador between locations

and businesses.

Serve as lightning rod for hot issues, allow

employees to vent.

Interpret the customs, language and cultures of

both companies.


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Create structure

Provide flexible integration frameworks

Mobilize joint teams

Create key timelines

Facilitate team and executives reviews.


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THANK YOUTHANK YOU

Documents

Integration PPT (OD)