- 1 - 100 Day Post-Merger Integration Plan. - 2 - Agenda Where Are We Today ? Where Do We Want To...

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100 Day Post-Merger Integration Plan

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Agenda

Where Are We Today?

Where Do We Want To Go?

How & When Will We Get There?

The purpose of today’s meeting is to secure GAI’s commitment to the proposed XYZ/ABC integration initiative.

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XYZ Must Position Itself For Future Success

6 Factors Shaping Future Success In The

Automobile IndustryXYZ Current State

XYZ’s competitive position relative to emerging success factors:

Weak Average Strong

Cross-divisional integration to capture economies of scale & scope

Independent, highly fragmented organizations

Increased sales & distribution channels, CRM strategies

Limited presence in EM’s, initial CRM efforts positive

Value-added suppliers / manufacturing partners

Brands slowly migrating to larger shared supplier base

Customer-centric brand portfolio management

Balanced portfolio of well regarded, premium brands

Where are we today?

Enhanced via ABC?

Improved quality while decreasing manufacturing costs

Some quality concerns, compared to best-in-class

Frequent model introductions Time-to-market generally on pace with competition

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Operations- Based Synergies

Market-Based Synergies

$209

$140

$168

$96

$120

$127

$200

$1,235

$85

$90

Platform Sharing

Purchasing

AP Mgmt.

Inventory

G&A Consolidation

AR Mgmt.

Quality Impact

Positioning

NA Expansion

TOTAL

XYZ’s Challenge: Unlock $1.2B (NPV) In Synergies

TOTAL VALUE OF XYZ/ABC

SYNERGIES

True Blue identified dozens of revenue enhancement and cost savings opportunities, of which $1.2 billion are readily quantifiable.

Where do we want to go?

Create formal structure to unlock long-term benefits

Focus will be on achieving “quick-hits” (purchasing, cash mgmt, headcount reduction identification)

100 Day Focus

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Risks

Acquisition Will Require Risk Mitigation

Risks Assessment

Market Risks

Operational Risks

Organizational /

Cultural

Strategic Risks

Loss of customer focus

SUV market growth

Dealer resistance

ABC brand dilution

Outdated ABC capabilities

Suppliers contract management

Capacity issues

Analyst acceptance of XYZ vision

XYZ/ABC vision not embraced

Strength of ABC leadership

Retention of key management

Labor union resistance

Resistance to change

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XYZ Enterprise Integration Model

Integration Change Management

COMMUNICATION

COMMUNICATION

ORGANIZATION

ORGANIZATION

CULTURECULTURE

Enterprise Integration Steering

Committee


COMMUNICATION

COMMUNICATION

ORGANIZATION

ORGANIZATION

CULTURECULTURE

Enterprise Integration Steering Committee

Create cross-organizational hierarchy and clear lines of accountability by function

Enable dedicated teams of SMEs to execute critical integration activities

Ensure organizational focus on realizing XYZ/ABC synergies

Create structure that transcends XYZ/ABC deal as a platform for XYZ-wide change

Objectives of Integration Model

How do we get there?

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COMMUNICATION

COMMUNICATION

ORGANIZATION

ORGANIZATION

CULTURECULTURE


Committee


Committee


Committee

Responsible for realizing identified market-based synergies

ConsultantOversight

ConsultantOversight

Distribution

CRM

Brand

Research

Scott Bowman, Dir. Sales &Marketing

VP Sales & Marketing, ABC


COMMUNICATION

COMMUNICATION

ORGANIZATION

ORGANIZATION

CULTURECULTURE


Committee


Committee Responsible for realizing

identified operational synergies

Mary Jane, COO

Consultant OversightConsultant Oversight

ManufacturingPurchasing

FinanceTechnology (R&D)

Information Tech.


COMMUNICATION

COMMUNICATION

ORGANIZATION

ORGANIZATION

CULTURECULTURE


Committee

HR

Legal/Environ.

Cultural Integration

Communication

Accountable for integration facilitation & risk mitigation

CEO, ABC Stanley, Strategy

ConsultantOversight

ConsultantOversight

XYZ Enterprise Integration Model


COMMUNICATION

COMMUNICATION

ORGANIZATION

ORGANIZATION

CULTURECULTURE


Committee

ABC, COO

HR Director, ABC

Mary Jane, COO

Chief of Staff, XYZ

Responsible for vision, direction and prioritization of all integration efforts

CEO, ABC Stanley, Strategy

ConsultantOversight

ConsultantOversight

Tom Brown, CEO


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Change Management Initiatives

Reports on the completion status to Enterprise Integration Steering Committee

1. Organize all stakeholders ASAP to announce details of integration strategy & plan

2. Establish 2-way feedback protocol & mechanisms

3. Launch communication campaign to minimize misinformation and misunderstanding

Track stakeholder awareness of integration progress

Track and categorize employee complaints

Track stakeholder satisfaction

Facilitate integration effectiveness with clear & continuous communication

Align organization to increase efficiencies and realize synergies

Minimize integration risks due to cultural differences

1. Develop cultural transition strategy to manage and mitigate the culture shock

2. Create compelling reasons for employees to embrace change

3. Start XYZ and ABC team building right away to create “one firm” culture

Deploy cultural progress surveys

Revalidate survey results with focus group workshops

Put extra emphasis on gathering informal feedback

1. Maximize stakeholder buy-in and involvement

2. Set cross-organizational hierarchy between ABC and XYZ divisions

3. Identify and develop retention strategy for key ABC and XYZ players

Monitor retention rates

Benchmark actual and forecasted ABC and XYZ organization rationalization

GOAL:GOAL:

ACTIONS:ACTIONS:

METRICS:METRICS:

COMMUNICATION

COMMUNICATION

ORGANIZATIONORGANIZATION CULTURECULTURE


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- 1 - 100 Day Post-Merger Integration Plan. - 2 - Agenda Where Are We Today ? Where Do We Want To...

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