DEVELOPING A POST ACQUISITIONSTRATEGY COMPLETION AND BEYOND

1、developing a post-acquisition strategy: completion and beyond case studies, concepts, and debatable ideas kenny ong cni holdings berhad www.mycni.com.my www.oobey.com 1. the first 100 days 2. in-house systems synergy 3. staff, compensation and benefits www.mycni.com.my www.oobey.com rewarded vs. unr

2、ewarded m 1995 product leadership (best product) customer intimacy (best total solution) strategy: disciplines, priorities, and kpis www.mycni.com.my www.oobey.com operational excellence competitive price error free, reliable fast (on demand) simple responsive consistent information for all transact

3、ional once and done customer intimacy management by fact easy to do business with have it your way (customization) market segments of one proactive, flexible relationship and consultative selling cross selling product leadership new, state of the art products or services risk takers meet volatile cu

4、stomer needs fast concept-to- counter never satisfied - obsolete own and competitors products learning organization strategy: disciplines, priorities, and kpis www.mycni.com.my www.oobey.com operational excellence customer intimacy product leadership organization, jobs, skills management systems inf

5、ormation and systems culture, values, norms each discipline requires different priorities & resources www.mycni.com.my www.oobey.com operational excellence central authority, low level of empowerment high skills at the core of the organization disciplined teamwork process, product- driven conformanc

6、e, one size fits all mindset integrated, low cost transaction systems the system is the process command and control quality management organization, jobs, skills management systems information and systems culture, values, norms each discipline requires different priorities & resources www.mycni.com.

7、my www.oobey.com organization, jobs, skills management systems information and systems culture, values, norms product leadership ad hoc, organic and cellular high skills abound in loose-knit structures concept, future-driven experimentation and out of the box mindset person-to-person communications

8、systems technologies enabling cooperation rewarding individuals innovative capacity risk and exposure management product life cycle profitability each discipline requires different priorities & resources www.mycni.com.my www.oobey.com organization, jobs, skills management systems information and sys

9、tems culture, values, norms customer intimacy empowerment close to point of customer contact high skills in the field and front-line customer-driven variation and have it your way mindset strong customer databases, linking internal and external information strong analytical tools customer equity mea

10、sures like life time value satisfaction and share management focus on share of wallet each discipline requires different priorities & resources www.mycni.com.my www.oobey.com post m&a: 4-wheels model culture business objective m&a strategy structure resources leadership person www.mycni.com.my www.o

11、obey.com post m&a : framework joint-boards org structure job design c&b policies & procedures decision making transition/integration team revise structure to strategy process alignments structure www.mycni.com.my www.oobey.com 1. share gain 2. adjacent market 3. new business post m&a : framework inf

12、o and comm technology integration cost centers real estate operating assets procurement* combined cost savings kpi product lines geographic parking: services, production customer problems database r&d resources www.mycni.com.my www.oobey.com 1. share gain 2. adjacent market 3. new business special n

13、ote: procurement prices and terms of current contracts supply market dynamics tactics for supply purchase consolidated spending database opportunities to save money cutting t.c.o. manuals on negotiation strategies www.mycni.com.my www.oobey.com activity grid to optimize resources increase () what ar

14、e features/ activities/services to increase? create (+) what are features/ activities/services to introduce? reduce () what are features/ activities/services to reduce? eliminate (-) what are features/ activities/services to eliminate? www.mycni.com.my www.oobey.com 3. staff, compensation and benefi

15、ts www.mycni.com.my www.oobey.com post m&a : framework tone, speed, direction, principles, requirements post-m&a roles & responsibilities geographic role differences decision making processes employee authorities communication* culture integration sessions buy-in key players leadership www.mycni.com

16、.my www.oobey.com 1. share gain 2. adjacent market 3. new business communication: internal what: significance, direction top management roadshows website web tv (vlogs) employee conventions, re-branding launch concrete, consistent messages generate enthusiasm, allay fears questions: workforce merge

17、or separate? let go? role assignments? compensation? www.mycni.com.my www.oobey.com communication: external media interviews media day single face to market (single proposition) customer communication organization (advantages of m&a) www.mycni.com.my www.oobey.com post m&a : framework integration-er

18、a incentives hr value: alignment hr value: capabilities hr value: engagement star (a) players competency mapping culture gaps employee views on new entity person www.mycni.com.my www.oobey.com 1. share gain 2. adjacent market 3. new business hr: special considerations 1.frontline (sales) is key in p

19、ost-m&a 2.targets for competitors to poach 3.communication: roadshows, repetition, emphasis 4.integration-era incentives: 1.retaining key people 2.encourage cooperation 3.sharing of knowledge 4.cross-selling 5.temporary management structure: 1.during transition period 2.cut thru red tape 3.on-the-sp

20、ot decisions 4.priority access to ceo www.mycni.com.my www.oobey.com mbo standards aexcellent bgood caverage dpoor euseless www.mycni.com.my www.oobey.com mbo standards aexcellent bgood caveragegood dpoor euseless www.mycni.com.my www.oobey.com mbo standards aexcellentexcellent bgoodvery good cavera

21、gegood dpoornot good euselesscommit suicide www.mycni.com.my www.oobey.com mbo standards aexcellent consistently achieved 4 for 3 quarters bvery good higher than planned results cgood achieved planned results dnot good did not fully meet planned results ecommit suicide unacceptable performance www.m

22、ycni.com.my www.oobey.com what to pay? pay for service pay for job pay for performance pay for competency www.mycni.com.my www.oobey.com performance and incentives 1. internal equity 1. internal job rates 2. performance differentials 2. external competitiveness 1. external job rates - benchmarking 2

23、. demand & supply www.mycni.com.my www.oobey.com whats the difference? increment bonus promotion www.mycni.com.my www.oobey.com compa ratio table use this if your company: pays for performance, and pays for job rates def: mid-point = mid point of pay grade grade e2 min rm2,000 mid rm2,500 max rm3,000 www.mycni.com.my www.oobey.com compa ratio table 0.9 - 1.3 5 4 3 2 1 www.mycni.com.my www.oobey.com compa ratio table 0.9 - 1.3 5