analyst s introduction to post merger integration in telecommunications
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Analyst’s introduction to post-merger integration in telecommunications. Only 20% of respondents were very well prepared to deal with cultures differences. Top post deal challenges. Cultural challenges Differences in working styles, leadership approach National culture differences

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Presentation Transcript
the change management challenge

Only 20% of respondents were very well prepared to deal with cultures differences

Top post deal challenges

  • Cultural challenges
    • Differences in working styles, leadership approach
    • National culture differences
    • Behavioural differences
  • People Issues
    • Key members of management team leaving
    • Employee moral and motivation
    • Retention of key staff
    • Consultation with staff and representative bodies
The Change Management challenge

“Cultural & people issues present the biggest specific challenges during the post deal period…”

Source: KPMG Global M&A survey 2005

…yet two thirds of companies had not placed a great deal of emphasis on addressing people and cultural issues in planning for the post deal period

abcinc s change management approach

Change management focus

Business impacts

Strategy & Business Plan

People impacts

Technical impacts

ABCinc’s change management approach
  • 9 out of 10 barriers to change are people related
  • In all M&A activities – ABCinc consider how we will identify and manage the human impacts of change in order to deliver the business goals and strategy.
  • Our change programmes are distinct from, but linked to, the more technical HR elements of M&A such as benefit and job alignments.
  • We address both the day 1 issues (systems access, tools etc) and the longer term integration needs of employees.
  • Typically our change programmes address:
    • Change definition (what, why, when, how)
    • Change leadership style & capability of ABCinc & the target company
    • Culture, behaviour & climate
    • Communications & engagement
    • Relationship / stakeholder management
    • Organisational structures
    • Skills & capabilities
m a integration practice m aip our role


Post-Merger Integration (PMI)

  • Post OC engagement
  • Focus on integration elements of business case
  • Integration DD, BC assumptions and application of historic learning
  • Ensure increased integration planning and preparation - validation of synergies, integration budget and cost inputs, pre closure communications, change management, integration resource in place and ready. Blueprint philosophy
  • ID tasked with delivery
  • Close monitoring/support in first 12 months
  • Ongoing assessment audits of integration project
    • After 12 months quarterly reviews till close
    • Key driver is achievement of acquisition business case goals
    • Support project team
    • Risk/mitigation strategies

Live Projects: 80%

Time/resource Allocation

M&A Skills & Community

  • Standardised methodology – version controlled robust approach
  • Consistent and repeatable
  • Adaptable to varying business requirements but within common structure
  • Minimise risks of diverse approaches to future projects
  • Invest our substantial earning
  • Central set of integration tools and templates
  • Reporting and governance
  • Fasttrack to project readiness
  • Establish and develop the virtual M&A community within ABCinc
  • Ensure Integration expertise and experience I harnessed for continuous improvement
  • Identify new integration directors and programme managers
  • Maintain resource and skill list for rapid deployment across projects and repeatability benefits
  • Thought leadership of M&A integration
  • Promote our capabilities to internal/external audiences, supporting ABCinc strategic themes

Method and skills: 20%

M&A Integration Practice (M&AIP) – our role
  • The M&AIP is the CoE for integration capability, methodology and skills:
    • with an overall priority for the successful delivery of integration projects
    • determining overall integration strategy, methods and approach.
    • engaging in the pre-transaction deal team - integration due diligence, business case refinement, planning and preparation
    • engaging and developing the wider integration community in GS, and wider e.g. ABCinc Retail, ABCinc Design
    • providing Integration Directors team for the integration projects for each acquisition.
    • Transferring integration skills to wider ABCinc community (i.e. Comsat)
integration workshops timeline during pre transaction

ABCinc Kick-off Workshop

Between A-Day and Day-1

Joint Integration Kick-off Workshop

As soon as possible after Day-1

Joint Integration Agreement Workshop

2-3 weeks after the Joint Integration Kick-off Workshop

Synergy Validation Workshop

2-3 weeks after the Joint Integration Agreement Workshop

A-Day Day-1 Day-1 + 12 months (e.g.)

Pre-transaction Integration Transition BaU

Prioritisation Workshop

2-3 weeks after the Synergy Validation Workshop

Full Team Rolling Review

2-3 weeks after the Synergy Validation Workshop

Workstream Rolling Review

2-3 weeks after the Synergy Validation Workshop

Integration Workshops timeline (during Pre-transaction)
programme information flow





PSG Reports









Project Budget







HLMP Update





Issue & Risk





Programme information flow
the integration contents flow

First 30 Days and ongoing ….

Next 70 Days & ongoing ….

Last 100 Days

Formal Handover to the Integration Team

Integration Process Matrix Impact

Programme Steering Group (PSG)

Joint Integration Kick-off Workshop


Integration Practice Reviews



Integration Communications


Joint Integration Agreement Workshop

Synergy Validation Workshop

OUC’s and Finance Transition

Synergy Tracking & Reporting

Change Management


(High Level Milestone Plan)


Prioritisation Workshop

The last

100 days

Hygiene Factors for Day-1

Document Register

Action Register

The Softer Integration Requirements

Full Team Rolling


Other Useful Information

Focus during

the first

100 Days


Issues & Risks Register

Motivation, Team Building & Recognition

Workstream Rolling




Programme Reporting Timeline

Integration Workshops



Brochure Blueprint

The Integration − contents & flow

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