*The crucial first three months (100 days) after the deal
* Issues on staff, compensation and benefits
*In-house systems synergy
*Retaining management and intellectual capital
*Efficient knowledge transfer
Developing a Post-Acquisition Strategy - Completion And Beyond
1. DEVELOPING A POST-ACQUISITION STRATEGY: COMPLETION AND BEYOND Case studies, Concepts, and Debatable Ideas Kenny Ong CNI Holdings Berhad www.myCNI.com.my www.OOBEY.com
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3. Rewarded vs. Unrewarded M&As From: “Habits of the busiest acquirers”, Robert Palter and Dev Srinivasan, McKinsey Toronto www.myCNI.com.my www.OOBEY.com
4. 1. The First 100 Days www.myCNI.com.my www.OOBEY.com
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6. Post M&A Type 1: Buying Market Share No evidence of previous company One Kingdom Pre-integration Blueprint Slow Trigger, Fast Bullet www.myCNI.com.my www.OOBEY.com Integration Operating Model Price Premium Buying Market Share Net Cost per Customer < Direct Acquire
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10. The First 100 Days 25 50 75 100 Save Star Performers Revise Strategy/Value Maps Staffing Plans Assess HR Value Re-align Strategy Coaching/Team Dev Restructure Capabilities Audit Culture Integration www.myCNI.com.my www.OOBEY.com
12. Strategy: Disciplines, Priorities, and KPIs Operational Excellence (low cost producer) Ref: The Discipline of Market Leaders , Michael Treacy & Fred Wiersema; 1995 Product Leadership (best product) Customer Intimacy (best total solution) www.myCNI.com.my www.OOBEY.com
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18. Post M&A: 4-Wheels Model Culture Business Objective M&A Strategy www.myCNI.com.my www.OOBEY.com Structure Resources Leadership Person
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22. Activity Grid to optimize resources www.myCNI.com.my www.OOBEY.com Eliminate (-) What are features/ activities/services to eliminate? Reduce (↓) What are features/ activities/services to reduce? Create (+) What are features/ activities/services to introduce? Increase ( ↑) What are features/ activities/services to increase?
31. MBO Standards www.myCNI.com.my www.OOBEY.com Useless Poor Average Good Excellent Commit Suicide E Not Good D Good C Very Good B Excellent A
32. MBO Standards www.myCNI.com.my www.OOBEY.com Commit Suicide Not Good Good Very Good Excellent Unacceptable performance E Did not fully meet planned results D Achieved Planned Results C Higher than planned results B Consistently achieved 4 for 3 quarters A