Snapshots of a Big Matchversion 5 - Vlerick
Frans Cornelis
the challenge:
rapid organic growth +major merger +major recession = ???
2
handling recent rapid growth AND a merger
10%10%
6%
5%
3%
2%
1%
23%40%
Netherlands Germany Belgium/Lux. France Spain UK Italy other* North America
16%11%
7%
6%
3%
3%
3%35%
16%
* including other Europe and Asia
2002
revenue € 5,444 mln. (YTD)
2006
Revenue € 8,186 mln. (YTD)
2002 2,154 528 549 343 288 170 86 73 1,255 (€mln.)
2006 2,912 1,307 924 532 498 249 253 240 1,271 (€ mln.)
3
combining Vedior and Randstad
4
outlets* by country 2004 - 2006
* branches and in-house locations
2,4112,670total
621Asia
64424
95430
other countriesNorth America
132150Italy
116126United Kingdom
165172Spain
170166France
227245Belgium/Luxembourg
288438Germany
819827the Netherlands
20052006end of period
2,320
0
56455
109
106
147
163
204
258
822
2004
5
outlets* of combined company 2007 - 2008
* branches and in-house locations
6
13,43015,380total
10260Asia
4502,370
5902,170
other countriesNorth America
440480Italy
450590United Kingdom
1,0601,110Spain
670710France
1,2301,400Belgium/Luxembourg
1,5702,280Germany
5,1805,790the Netherlands
20052006averages (YTD)
corporate, staffing employees by country
12,260
0
2702,190
380
440
950
620
1,100
1,380
4,930
2004
254,400312,300staffing employees 224,600
7
combined company 2007 - 2008
total own employees Q2 2008: 34,000
(total own employees Q1 2010: 25,500)
8
Randstad major brands
9
just some (!) of Vedior‘s brands
10
Volkskrant
Gekke koppeling van uitzendersACHTERGROND, Van onze verslaggever Xander van Uffelen
Amsterdam - Het uitzendbedrijf Vedior heeft een brochure van maar liefst 36 pagina’s nodig om al zijn merken op te sommen. Van het uitzendbureau
Promatica in Angola, via Expectra in Frankrijk naar Dactylo in Nederland. Randstad daarentegen hanteert slechts een handvol belangrijke uitzendmerken
en heeft zijn bekende blauwe logo in bijna alle landen geïntroduceerd.
De versnippering van de merken van Vedior tegenover de eenvormigheid van Randstad is slechts een van de vele grote verschillen tussen beide
bedrijven. Voor bedrijven die ervaring hebben met het aan elkaar koppelen van twee geschikte kandidaten, is de aangekondigde samenvoeging van
Vedior en Randstad op zijn minst opmerkelijk te noemen.
Randstad is ijzersterk in thuisland Nederland, maar heeft verder zijn activiteiten goed gespreid over vele landen. Vedior leunt zwaar op Frankrijk, waar 40
procent van de omzet vandaan komt, en kan zich in andere landen nergens marktleider noemen. Randstad richt zich primair op de algemene markt van
uitzendkrachten, waar Vedior allerlei gespecialiseerde uitzendkantoren voor werving en selectie heeft verzameld.
‘Je mag aannemen dat bij een geslaagde overname de koers van Randstad de boventoon gaat voeren’, zegt analist Johan van den Hooven van
zakenbank Theodoor Gilissen. ‘Het nieuwe bedrijf zal een duidelijke lijn aanbrengen in de bedrijfsvoering van Vedior en de winstmarge verbeteren.’ Ook
zal bij Vedior de bezem door het aantal merken gaan, iets wat de nieuwe baas Tex Gunning waarschijnlijk toch al van plan was. Bij zijn vorige werkgever
Unilever heeft hij ervaring opgedaan met het saneren van merken.
De geschiedenis van Randstad oogt ook meer als een rechte lijn. Oprichter en grootaandeelhouder Frits Goldschmeding zwoer bij een autonome groei.
Vedior daarentegen is een afsplitsing van het conglomeraat Vendex en heeft sinds zijn zelfstandige bestaan in 1997 uiteenlopende bedrijven opgekocht.
Naast de grote bedrijfs- en cultuurverschillen zullen er nog meer obstakels overwonnen moeten worden om Vedior en Randstad tot een geheel te
smeden. Zo zijn er de mogelijke bezwaren van de mededingingsautoriteiten. Randstad is met een marktaandeel in Nederland van 37 procent al veel te
sterk. De inlijving van de Nederlandse kantoren van Vedior (7 procent marktaandeel) zal daardoor op problemen stuiten. In andere landen spelen deze
bezwaren minder.
Het tweede probleem is de vraag hoe Randstad de overname kan betalen. Voor Vedior zal het bedrijf naar schatting 4 miljard euro moeten neertellen. Met
leningen en kasgeld kan het bedrijf zo’n 2 miljard euro opbrengen. Er zal dus voor 2 miljard euro aan nieuwe aandelen uitgegeven moeten worden, wat
door de kredietcrisis een dure zaak is. Die crisis, waardoor aandelen van uitzendbedrijven flink in waarde zijn gedaald, is ook een meevaller, zegt analist
Van den Hooven. ‘Vedior is nu wel een stuk goedkoper.’
Principles: how to tackle all this
12
what gets measured, gets done: basic measurement systems
(potential)customers - 58%
(potential)employees - 10%
(potential)investment - 14%
social/politicalimage - 12%
clear message stressing the satisfaction plus sufficient right image with the result(ad) spending components (experience!)20 to 25% 20 to 25% 50 to 60%
n =966 n=857 n=972
MerkTop of mind
bekendheid
Spontane
bekendheid
Geholpen
bekendheid
Top of mind
bekendheid
Spontane
bekendheid
Geholpen
bekendheid
Top of mind
bekendheid
Spontane
bekendheid
Geholpen
bekendheid
KPN 50% 72% * 46% 71% * 53% 76% *
KPN Telecom 4% 14% 98% 4% 10% 96% 3% 19% 96%
KPN Mobile 0% 5% 76% 0% 3% 86% 0% 12% 84%
PTT Telecom 12% 22% * 7% 10% * 8% 19% *
Hi 0% 5% 77% 0% 3% 79% 1% 10% 75%
Hi <34 jr 0% 6% 91% 0% 11% 92%
Libertel 10% 60% 96% 8% 49% 97% 7% 50% 96%
Telfort 3% 33% 93% 3% 26% 94% 3% 30% 91%
Dutchtone 2% 33% 86% 2% 28% 88% 2% 33% 86%
Ben 4% 54% 90% 7% 44% 91% 4% 51% 90%
Vodafone 0% 2% 51% 0% 3% 47%
Orange 0% 0% 26% 0% 1% 27%
Q 0% 0% 8% 0% 1% 8%
One.Tel 5% 17% 66% 3% 10% 67% 3% 16% 66%
Tele2 8% 23% 75% 15% 29% 85% 12% 33% 81%
Versatel 0% 3% 37% 0% 1% 43% 0% 5% 46%
Priority Telecom 0% 0% 17% 0% 0% 12% 0% 1% 14%
Scarlet 0% 1% 12% 0% 0% 12% 0% 1% 9%
Primus 1633 0% 2% 13% 0% 1% 7% 0% 1% 7%
okt-00 sep-01 okt-01
©C
opyr
igh
t 20
01 C
ons
ult
KPN Telecom, Siemens, Microsoft, HP en IBM are
the strongest brands
MCI Worldcom
0
50
100
50 100Brand Stature
Bra
nd V
italit
y
Iomega
Novell
Lotus
NECDigital
Dell
Fujitsu
Intel
Olivetti
Tulip
Toshiba
CompaqApple
IBM
Hewlett-Packard Microsoft
Lucent Technologies
BT/British Telecom
AT&T One.tel
Versatel
Telfort
Tele2
UPC
Ericsson
Nokia
Siemens
0
Ben
FlexiBelDutchtone
Hi
Libertel
KPN Telecom
Decision makers
Vaste Telecom
Mobiele Telecom
Computermarkt
2000
RepTrak
RepTrak
RepTrak RepTrak
RQ
RQ
RQ
RQ
TNSTNS
BAV
Share price
Press monitor, share of voice
RepTrak
“Rematch”-type rankings etc
Actual regulations, CLAs
Culture Survey
TNS
MM
Factiva/RQ
E.com
Interbrand Net promotor
scores
13
Culture — Six hard-earned core beliefs on cultural integration during the merger
1 4Start with a fact baseSecure insights on existing cultures of Randstad-Vedior; don‘t exaggerate culture differences to create a ―scapegoat‖ for underperformance
Deliver coherent program and make it a personalTrue behaviour change requires well-designed, coherent set of systemic interventions, and individual resolve to make a difference
3 6Design for leader-led programTop team alignment and role modelling is first and most critical step to success, and soon to be appointed business unit managers (N-1) have to take it forward
Let experts lead from behind to build capability to self-deliverUse proven experts to design and deliver initial steps of the program, and develop Randstad-Vedior managers to continue the journey independently
2 5Ensure value creation focus Don‘t just blend two cultures to a ―nice‖ mix, but use merger to boost daily performance, capture identified synergies and increase long term health
Integrate seamlessly with operational PMO initiativesDon‘t execute cultural program as separate ‗HR, Friday afternoon‖ effort, but integrate it with the ―hard‖ post-merger Randstad-Vedior integration initiatives
14
Integration buiding blocks to plan and execute the integration of Randstad & Vedior successfully
SAMPLE CHART
* Monitoring efforts included, specific efforts to keep the business momentum
to be executed by business owners
Source:Team analysis
Integration support
Program office project support
Communication & strategy story
People retention andredundancy
Synergy definition/tracking/baseline
Risk identification and mitigation
Active monitoring of ongoing businesses*
Central
Local
markets
Culture• Assessment• Target culture• Pre closure
intervention• Post closure
intervention
6
HQ integration (e.g. facilities)
3
Strategic topics• Branding• Prof.Service
strategy
Top structure and appointments/alignment
1
2
BelgiumFrance
Netherlands
Country integration• Support functions• Organization
structure• Branding• Branch network
integration• Rollout best
practice operating model
4
4Functional integration • HR• Marketing• Finance
– Investor Relations
– Tax– Reporting– Internal controls
& risks– Profit per-
formance management
– Internal controls– Insurance, Risk
& treasury• Legal• IT• Government
relations• Purchasing• Communications
5
Define blue print and implementing plan for after closure
2
1
3
4
5
6
(Re) Branding as a primary
strategic and central subject to
plan for BEFORE the closure of
the deal
15
master comms schedules with draft documents, contingency planning - prepared well in advance (Q2, Q4 2007)
Communication options
and planning
General press,
media
Own
shareholders
Target
shareholders
Own
analysts
Target
analysts
(EU) Works
council
Target (EU)
Works
council
Rough short term scenario 1:
(orderly process)
Announcement to other party secret SB only n/a secret n/a secret n/a
Period of silence secret SB only n/a secret n/a secret n/a
Actions become public
(announcement of intentions or
informed leak, rumors)
Press release and
press conference,
factual EB interview
round as required
Press release
plus basic
Q&A
Press release
plus open letter
A
Press
release plus
ppt and
conference
call
Press
release plus
ppt and
conference
call
Press
release plus
letter B
Press
release plus
open letter B
or C
Period of intense (public)
attention to process, bidding
between parties and others
Press release and
press conference,
regular EB
interviews when
required
Press release
plus basic
Q&A
normal IR
contacts
additional IR
calls
Actions resulting in
announcement of final agreement
(or not)
Press release and
press conference,
background
interviews as
required
Press release,
letters, notices
Press release
and
shareholders
meeting?
Press
release,
conference
call
Press
release,
conference
call
Press
release plus
meeting
Press
release plus
meeting
Initial communication of actions
resulting from above
Press release,
letters, notices
Press release,
letters, notices
Road show Road show management
meetings,
set up new
structure
management
meetings
Longer term communication of
actions resulting from above
Press release when
required
business as
usual
n/a business as
usual
n/a business as
usual
n/a
Rough short term scenario 2:
(heavy resistance or
rebuttal)
Announcement to other party secret SB only n/a secret n/a secret n/a
Period of silence secret SB only n/a secret n/a secret n/a
Actions become public
(announcement of intentions or
informed leak, rumors)
Press release and
press conference,
factual EB interview
round as required
Press release
plus basic
Q&A
Press release
plus open letter
A
Press
release plus
ppt and
conference
call
Press
release plus
ppt and
conference
call
Press
release plus
letter B
Press
release plus
open letter B
or C
Period of intense (public)
attention to process between
parties and others
Press release and
press conference,
regular EB
interviews when
required
Press release
plus basic
Q&A
normal IR
contacts
additional IR
calls
Actions to disentangle and start
up second project (again scenario
1 or 2, until stable state is
reached)
Press release and
press conference,
factual EB interview
round as required
Press release
plus basic
Q&A
Press release
plus open letter
E
Press
release plus
ppt and
conference
call
Press
release plus
ppt and
conference
call
Press
release plus
letter F
Press
release plus
open letter F
or G
Own
employees
Target
employees
Own top
management
Target top
management
Authorities
(Nma?)
General
public &
flexworkers
Own Clients Target
clients
EB and MT,
MD networks
Friendly
independent
consultant(s)
secret n/a secret n/a tbd secret secret secret secret secret
secret n/a secret n/a tbd secret secret secret secret secret
Internal
communication
message plus
basic Q&A
Open letter C
or D
Internal
conference call
tbd Public
message in all
branches
Press release
plus letter
Informal letter
Internal memo
as required
open letter if
required
internal memo
if required
Feed with info
they can
dessiminate
Open letter
and
announcement
of next steps
Ad in major
papers if
required
Press release
plus letter,
individual
contact IAM
Informal letter
plus
announcment
at events
Feed with info
they can
dessiminate
Town hall
meetings
Town hall
meetings
Informal letter
plus
announcment
at events
Feed with info
they can
dessiminate
Adjust I/C
media, systems,
then business as
usual
n/a (temporized!)m
eetings with
new
colleagues
(temporized!)m
eetings with
new
colleagues
Public
messages in
all branches,
other means
Letters and
individual
contact new
IAM
secret n/a secret n/a tbd secret secret secret secret secret
secret n/a secret n/a tbd secret secret secret secret secret
Internal
communication
message plus
basic Q&A
Open letter C
or D
Internal
conference call
tbd Public
message in all
branches
Press release
plus letter
Informal letter
Internal memo
as required
open letter if
required
internal memo
if required
Ad in main
paper as
required
Feed with info
they can
dessiminate
Internal
communication
message plus
basic Q&A
Open letter G
or H
Internal
conference call
tbd Public
message in all
branches, ad
in main
papers
Press release
plus letter
Informal letter Feed with info
they can
dessiminate
generic communications materials for all
stakeholders in most scenarios already
prepared with fake names long before the
merger… even before the start of talks –
massive time savings and stress avoidance
later later
16
communication aspects/highlights
integrated Marketing & Communications- capacity- implementation- ‖stuff‖
involved from the beginning in acquisition strategy- hit the ground running- ―the leak‖
Speed, Momentum, Initiative- involvement vs. democracy
small, own team- located next to EB offices
17
communications actions and timing (2008)
Q1 2008 Q2 2008 Q3/4 2008
Preparation Integration
Internal brandingIntroduction integration communication channels:
• Big Match Bulletin
• Web casts Tex (Vedior)
• Joint intranet content
• Management Match
• Joint top management ―Elephant‖ session (GTKY)
Day-to-day communications
• Randstad@work
• E-link
• Opco magazines & intranets
• Bighug.com
• E-memo management
• Opco magazines & intranets
Personal integration communication
is leading, fed by:
• Management Match
• Regular GMMs (both sides)
• Management communications workshop
• Communication toolkits
• Big Match Kick-off event
• Big Match Breakfasts
• Chat sessions / town hall meetings
• Joint top 50 or top 100 management ―Elephant‖ session
Supported by Integration communication channels
• Big Match Bulletin
• Joint intranet content
• Big Match welcome package
• Cultural interventions GTKY process)
Day-to-day communications continued
Integration communication channels
replaced by
New communications infrastructure
• Joint intranet
• Joint e-newsletter
• Joint national magazines
Internal branding
• Joint cascade of ―GTKY‖ sessions
• Internal branding campaign
• Continued plans until end 2010
2009
2010
18
communications actions and timing (2009)
Q3/4 2008
Integration
Internal branding
Integration communication channels
replaced by
New communications infrastructure
• Joint intranet
• Joint e-newsletter
• Joint national magazines
Internal branding
• Joint cascade of ―GTKY‖ sessions
• Internal branding campaign
• Refine Continuation plans until end 2010
• Joint culture session in Madrid
• New profesionals house styledeveloped
2010 2009
Rebranding processes external and internal
• 106 rebranding projects
• 95% of company done by end 2009
• New professionals house style approved, roll out by ―trailblazer companies‖
• Adjust global PA strategy
Day-to-day communications
• Active profiling new management
• Joint history recording project
• New TV campaign-derivedinternal comms materials available
• New Opco magazines & intranets
• Startup of Randstad 50 project
Management-led intiatives
• Value reconnection program kick-off(with HR)
• Group Management Meetings in new style with heavy emphasis on cultureand behaviour
• Setup of renewed global Communications and Marketing communities, new KPIs etc
Internal branding
• Execute global all-year Randstad 50 program(successor to Randstad 45)
6/11/201018
19
external visibility in press and media:
Competitive Volume Analysis: Europe
(September 2005 – August 2006)
20
advertising campaigns… the smart way
merging 2 organizations = 2 budgets- cut all functional duplication immediately- cut campaign for the disappearing brand immediately- use free budget for extra media during transfer
use existing brand equity to leverage new brand equity- name the disappearing brand in the ads for the new brand for a while- phase out gradually as soon as possible, avoid prolonging ―two names‖
be aware of the strategic options- make the choice between boosting share or realizing synergies
a name change is an opportunity too – example:- the rebranded TT organizations gained share and margin faster than
the average of the company in the applicable countries
21
22
one common intranet live in May 2008
€ 20.56 +0.24 (+1.15%)
23
new ―mission theme‖ development…
shaping the world of work
25
8
core values
know
serve
trust
simultaneouspromotion ofall interests
striving forperfection
We are experts. We know our clients, their companies, our candidates and our business. In our business it ’s often the details which count the most.
We achieve through a spirit of excellent service, exceeding the core requirements of our industry.
We are respectful. We value our relationships, and treat people well.
We see the bigger picture. Our business must always benefit society as a whole.
We always seek to improve and innovate. We ’re here to delight our clients and candidates in everything we do, right down to the smallest detail. This gives us the edge.
6/11/201025
26
professionals,staffing and internal examples
internal lauch campaigns (example ANZ)
6/11/201026
27
28
29
video material
6/11/201029
summary of overall lessons learned
- prepare, prepare, prepare
- IF you are prepared: faster, faster, faster
- at the start, use some limited number of the bestadvisors and concepts possible
- then get the external advisors out as fast as possible
- do not allow outsiders to lead sensitive projects
- recession almost distracted us for a few months,stay the course