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Global network of innovation . Management of Post Merger Integration Projects . Global network . Failure Rates of Mergers: Overview empirical studies . of innovation . General Analysis . Specific Analysis . 100% . Consulting . Science . 85% . 83% . 79% . 78,5% . 80% . 75% . 72% .
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Global network of innovation Management of Post Merger Integration Projects
Global network Failure Rates of Mergers: Overview empirical studies of innovation General Analysis Specific Analysis 100% Consulting Science 85% 83% 79% 78,5% 80% 75% 72% 71% 69% 63% 62% 61% 60% 56% 50% 47% 40% 40% 20% Mercer Bain McK Porter Harbison Europ. Cross Merger Bank Cross IMA MoE 1996 1997 1987 1988 Silver Deals Border of Equals Hayes Border 2000 IMA 1984 KPMG J.P. Morgan 1998 IMA 2000 1998 1998 2000
Global network Problems and Reasons for Failure of innovation Percent o f Respondents Problems identified in Post-Merger Integration Insufficient communication 58% Financial/ synergy expectations 47% unrealistic or unclear Compromises in new organization 47% structure „Master Plan“ missing 37% Missing momentum 37% Lack of top management commitment 32% Unclear strategic concept 26% Missing pace of project 26% IT issuesadressed too late 21% Source: A.T. Kearney
Studies show: of innovation Global network PMI is the weak point in M&A management Main problem areas in M&A management* Strategic Transaction Integration Analysis * Example from: Boston Consulting Group: Multiclient study
Integration Steps Global network of innovation BUILD KEY ACTIONS: • Evaluation of organizational models and selection of the Future Mode of Operations • Determination of the prime and supporting process model in the context of a superior process model • Validation of existing processes and adjustment where necessary • Determination of the concept for the implementation of the process model (incl. Quick Wins) • Refinement and agreement on roles, responsibilities and competencies (incl. P&L) • Development of action plan for the set up of structural elements with regards to portfolio, employees, management of employees and ressources • Definition and development of the target agreement system and the respective controlling requirements
Integration Steps Global network of innovation BUILD KEY ACTIONS (cont.): • Mission critical: Detailled project plan and dedicated project organization • Implementation of work and project teams: - strategic: Countries, Production Sites, Brand- and Productportfolio - operational: R&D, Delivery, Logistics - central: Finance & Accounting, IT, Law and HR • Development of an internal and external communication concept/plan • Define milestone and benchmarks to ensure and to proof the realisation of synergies and to ensure the compliance with the transformation plan
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