M&A Change Management Strategy (Manufacturing). “Whenever you see a successful business, someone once made a courageous decision.” ~ Peter Drucker.

M&AChange Management

Strategy (Manufacturing)

“Whenever you see a successful business, someone once made a courageous

decision.”

~ Peter Drucker

The reality50%+ of M&A activity fails to deliver on financial expectations*

Most common reasons:○ Mis-aligned business strategy○ Culture shock - failure to address people issues○ Management ○ Technology

* Business Insider, 10/2012* Forbes 3/2012* Globoforce 9/2012

Integration Change Approach

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Current State of ProjectLeadership/Sponsorship

ChangeManagement

ProjectManagement

0

10

20

30

Prosci ® PCT TM Assessment Results

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Strong sponsorship

Solid project plan

Need to build out the change plan

Level of Impact (Manufacturing) # of F

TEs

Change Percentage

Significant impacts: org structure, reporting relationships, processes, tools and systems.

Proposed Sponsorship Model + Alignment

Mfg. (Acquirer)

Mfg. (Acquirer)

JS

SK

VP

COO

CEO2

CEO

Mfg, (Acquired)

Organizational Attributes: Acquiring Mfg.

8 8

• Employees satisfaction high; no recent significant changes

• SAP Manufacturing environment

• Strong leadership and sense of team

• Culture is “family-focused” – trust-heavy

• General sense: local communication is effective

Organizational Attributes: Acquired Mfg.

• Rumors abound about potential for sale

• Under-performing financially for 6 quarters

• Immediate concern = job security

• Mfg’s legacy systems and processes seen as albatross

• Strong culture of “family,” very few WFRs historically

9 9

Sponsorship Roadmap: Your Role

• Be visible and approachable to employees

• Be primary spokesperson in Acquiring Mfg and secondary in Acquired Mfg.

• Communicate business case for change (up, down and across), and key updates as decisions are made

• Be candid and transparent; credibility is key

• Be open to feedback and listening; open dialogue

Communication ObjectivesProvide timely, transparent and accurate information to

targeted audiencesLeverage managers as change champions and

communicatorsCommunicate what we know, when we know itLeverage existing employee data

Change Communication Plan: Acquiring Mfg - Day One

Timing Vehicle Key Messages Spokesperson Notes/ Feedback

8:00am Email w/ announcement, copy of press release and invite to attend Townhall

*Excited to announce acquisition* Share similar values and product-suites* Positions us as largest in industry* More details to follow* Please join Operations Leadership in common-area for Townhall

CEO, cc:ing COO, VP & Director of Mfg. + HR

9:00am Townhall *Excited about acquisition* Share similar values and product-suites* Positions us as largest in industry* Details still being ironed out, but do anticipate a 12-18 month integration of Mfg facilities* Celebration!

COO: repeat announcement

VP + Director: local msgs

HR onsite for at least one week

Next Steps1. Continue to build out change & communication

plans, aligned with project plan2. Share plan with HR to ensure alignment with

onboarding plan3. Socialize plan with key managers to get

input/buy-in

Questions