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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The change management challenge l.jpg

Only 20% of respondents were very well telecommunicationsprepared 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 l.jpg

Change management focus telecommunications

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 l.jpg

Pre-transaction telecommunications

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 l.jpg

ABCinc Kick-off Workshop telecommunications

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 l.jpg

Charters telecommunications

PSG

Objectives

Owner

PSG Reports

Projects

Risks

PDD’s

Assumptions

Milestones

Resources

Dependencies

Risks

Project Budget

Assumptions

Synergy

Tracking

Checkpoint

HLMP

Blueprint

HLMP Update

Action

Register

Rationale

Vision

Issue & Risk

Register

Integration

Structure

Etc.

Programme information flow


The integration contents flow l.jpg

First 30 Days and ongoing …. telecommunications

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

Culture

Integration Practice Reviews

Integration

Blueprint

Integration Communications

Checkpoint

Joint Integration Agreement Workshop

Synergy Validation Workshop

OUC’s and Finance Transition

Synergy Tracking & Reporting

Change Management

HLMP

(High Level Milestone Plan)

Re-branding

Prioritisation Workshop

The last

100 days

Hygiene Factors for Day-1

Document Register

Action Register

The Softer Integration Requirements

Full Team Rolling

Review

Other Useful Information

Focus during

the first

100 Days

Governance

Issues & Risks Register

Motivation, Team Building & Recognition

Workstream Rolling

Review

Quick

Wins

Programme Reporting Timeline

Integration Workshops

Timeline

Leadership

Brochure Blueprint

The Integration − contents & flow


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