This story is for CEOs who
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Seek synergy savings after a merger
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Must quickly align two diverse cultures
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Lack standardization, change management, and governance tools and resources
The Challenges
A manufacturer of simulators for commercial airlines and aircraft manufacturers acquired a manufacturer of simulators for the military. Both companies were eager to join forces but the differences between their two cultures threatened the relationship and the $30 million of post-integration savings that the company had identified.
Using process and value stream mapping to align procedures and gain synergy savings
SGS Maine Pointe:
- A master scheduler that provided a flexible but precise focus on progress toward daily, weekly, and monthly objectives and completion of the overall plan
- Visual alerts—early warning indicators (EWIs)—for late starts or late completes
- A process tracker that analyzed the impact of changes on the company, whether
- for individual functions like sales or for overall risk
- An owner, responsible, inform, consult, and inform (ORCI) system to ensure accountability
- A cultural matrix that identified and unified the company behind a consistent set of values
- A change ambassador network that kept information flowing and helped answer “what’s in it for me” (WIFM) concerns
Lessons learned for other executives
- A successful integration requires in-depth analysis of culture, processes, and systems
- Removing barriers to change requires boots-on-the-ground analysis and negotiation
- Sustainable change requires customized tools and clarity about roles
The Results
- Exceeded expected synergy savings by 25%, for a total of $40+ million
- Chartered 650 tasks and milestones in detail, with daily and weekly updates of progress to plan and with consistent KPIs and metrics
- Embedded early warning indicators (EWIs) for late starts or late completes to keep the progress on schedule from day one
- Developed one culture, standardized business and work processes, and increased cross-functional collaboration and accountability
- 5:1 ROI
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Expediting post-merger integration to maximize synergy savings (CS268)
