POST M&A… ITS ALWAYS THE PEOPLE YOU ARE ACQUIRING FIRST – THEN THE ASSETS
About The
Company
| SECTOR | Manufacturing |
|---|---|
| SCALE | 2000+ Employees |
| GEOGRAPHY | South East Asia |
| DURATION | 12 months |
The
Challenge
A Manufacturing organization in a declining industry which could have vast potential if re-cast for the future, was bought by our Client over a year ago.
The organization had been around and managed for over 2 decades by a leading Japanese Firm and was well known for its pristinely maintained plant and the well-trained Management team that ran the show impeccably for over two decades.
The new acquirer organization was keen to bring about changes in work practices that seemed inevitable given the market conditions and there was great pressure from the Commercial Team to improve productivity….
Except over a year had passed since the acquisition, the Teams were set in their way, the Change seemed to have met with great resistance and there was no influential body working with the acquired entity. There was obvious distance, & Trust issues to move forward
The
Approach
Diagnose
Design
Deploy
Sustain
The
Approach
Diagnose
Much of the Diagnosis was carried out using Capstone’s Proprietary Discovery process for validating the context and the Brief to work in Teams and through one-on-ones to reveal several challenges arising out of not having integrated the new Assert through intentional efforts of the new Team of Directors. Also the Change that needed to be managed to keep the Asset High Performing year on year…
The
Approach
Design
The Design phase involved creating of multiple Workstreams across Operations, Talent, Commercial and Financial Process Innovation, Technology to make the organization more current, Communicative and High Performing
- Building a rhythm for Communication & Connect – was key to build Trust
- Retaining past tradition while upholding New Economy ways of managing & keeping the organization High Performing and Rewarding was key….
- The New Management needed the processes to be overhauled to improve Productivity, reduce Costs, drive Talent related programs etc. which were discussed internally but there seemed to be Business As Usual with little momentum for these agendas.
- There was a serious disconnect between the new Directors hired and the Operational Teams with very few platforms and processes for Communication and Accountability. The Execution Teams expected to be considered and rewarded well without stretch performance….
- This experience opened several areas for exploration, re-Thinking…
- Had the post acquisition actions been too weak to complete a robust process, not only legally but in the context of People, Processes, Culture and Integration of Culture to the new acquiring entity?
- Had the asset been left to run on its own for too long to question old ways of doing things that seemed to create push backs?
- How would we resolve Relationship & Trust issues to truly get value from this investment? Could we still salvage this?
The
Approach
Deploy
- This phase was about initiating actions & plans
- Ensuring early Wins where Culture, and Policies, Programs, Workstreams and Communication was constantly deployed as planned
- The results were there to see – more contributions from the Teams on ideas to resolve persisting problems, greater involvement, Trust & Connect.
- This phase did involve some design of re-organization of Talent, new policies & programs to address Integrating new Talent, keeping Talent pipelines robust and create mechanism & platforms for Communication.
- Integrating Head office with the plants was a game-changer as it opened the doors to Trusts, New Thinking and a positive orientation to Change!
The
Approach
Sustain
The Sustain phase has involved tracking the Actions and Outcomes outlined in our Report post the Discovery Phase
The Outcomes of strengthening the Top Leadership Team with the Operations Leadership has been a sustained outcome from plants constantly striving to become more productive
Execution of and enhancing the Impact of the Workstreams have been important
The constant improvement of the work ecosystem and especially the enhanced Trust, Teamwork, Employee Experience and modernizing of facilities have lead to –
- Improved Connect, Trust & Relationships
- Improved outcomes on the Cost Optimization Project
- Enhanced Employee Experience & many innovations on the Talent front
- Work underway to modernize & enable the Plants operations to improve.
Faculty
Review
