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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