The First 100 Days - Capgemini

1 The First 100 DaysA structured and transparent approach to post-merger integration (PMI) Context More than 70% of integ rations fail to deliver the e xpec te d re sults mainly due to the a bse nce of a cle ar pos t-merg er planning . The First 100 days of a merg er have a disproportionate ly hig h impact on the overall succes s of an integ ration. The g oal of the First 100 days is to e nsure busines s conti-nuity, confirm synerg y targ ets and defi ne the targ et operating model, while following a critical path to be st mitig ate integ ration , having a plan for the First 100 days in place de cide s over the suc-ces s of a pos t-merger integration. For this critica l pha se, Capg e mini Consulting ha s prove n methodolo-gie s and capabilitie s to develop and e xecute the plan. Core components of the First 100 days planThe First 100 days plan consists of five core com pone nts, e ach e ntailing an analysis and implem e ntation pha se.

2 The core compone nts com-prise the: org an isational real ig nme nt, proces s integ ration, syste ms integ ration, synerg y tracking a s well a s product and customer re alig nme First 100 days plan details for e ach core com pone nt a spe cific set of activitie s and deliverable s to be achiev ed by a spe cific de adline. The plan s core com pone nts are ap plied in a holistic manner to all functional are a s of the ne w busines the core com pone nts of the First 100 days plan to the integ ration are a s of the ne w busines s re sults in a pre-defined set of key mile stone s. This hig h-lev el plan must the n be detailed in action plans for e ach integ ration are a, spe cifying a ctivitie s that are strateg ically a s well a s opera-tionally important. In addition, critical paths across all integ ration activitie s are defi ne d to a scertain that the First 100 days of integ ration proce ed rapidly and remain on track at all time s.

3 Conseq ue ntly, a cle ar and re sult-drive n path to post-merg er integ ration is g ive n at the outset of the projec t. 2016 Capgemini ConsultingFigure 1: Capgemini Consulting PMI approach Letter of intent Signing Day 100 laed fo erusolCPrepare Day 1communication Set up stream teams Prioritise activities, establish action plans Ensure resource availabilities Align teams Develrst 100 daysplan (work stream logic); including crucial milestones, critical path, workshops, synchronisation meetings, change management & communication activities Set up integration management office Assign integration lead and team Decide on governance Set up/review integration checklists Define communication strategy Stay focussed: prioritise and re-prioritiseStay on track: reinforce reporting Stay committed: incentivise efforts, communicate successes Pre-signingDay 1 preparationThe First 100 daysIntegration executionPhases MilestonesObjectivesExecutrst 100 daysplan, : Focus on key activities, follow the critical path Ensure business continuity Define target operating model and focus on core components (organisation, processes, systems, synergies, products & customers)Confirm synergy targets and levers Detail integration execution plan incl.

4 Stream integration roadmaps Establish monitoring tools and integration KPIs Related to the First 100 days plan The First 100 DaysIn the background: detailed First 100 days plan22 Critical success factors and key benefitsOur e xperie nce shows that the foun-dation for a succe ssful pos t-merg er integ ration is laid during the First 100 days . Critical succes s factors are: Strict adhere nce to the initial merg er rationale do not lose sig ht of the orig inal strateg ic inte nt Incre a sed customer focus the customer is part of the proce ss and must not be neg le cte d Early me a sure s to retain key performers e arly defi nition of the future le ade rship org anisation and rete ntion me a sure s for key stake-holde rs Transpare nt and focused commu-nication cle ar re sponse patterns in ca se of conflicts De cisive chang e le ade rship involvem e nt of top manag em e nta s chang e sponsors to g e nerate anddrive the mome ntum Structured integ ration manag ement safeg uard ongoing operationsRe spe cting the se succe ss factors is ne ce ssary to reduce risks, ma ximise value cre ation and se cure busine ss continuity.

5 Leverag ing our broad network of international e xperts and our handy tools and che cklists, we will e nsure an efficie nt and eff e ctive support throug hout your integ ration challe ng First 100 days as part of our complete PMI offeringDeve loping and supporting the First 100 days of an integ ration is a vital com pone nt of our com pre he nsive Post-Merg er Integ ration offering . Capg emini Consulting ha s broad e xperie nce in supporting e xternal g rowth initiative s throug hout the e ntire de al cycle a s well a s in the dive stme nt /carve-out are a. Following our approach that is embedded in our modularised PMI framework, we always recomme nd to support an integ ration with a tailored proje ct manag em e nt office a s well a s other supportive a ctivitie s such a s chang e managem ent or a focused IT approach. All of the se elem e nts are fully or-che strate d to me et the overall obje c-tive s of the merg er within the antici-pate d time line.

6 2016 Capgemini Consultingda y 30 da y 80 da y 100 Figure 2: Hight-level plan for the First 100 days Supply Chain & Operations R&D Marketing, Sales & Services Admin & Finance Human Resources IT Legal Core integration areas Supporting integration areas Clear view on current status To-be design completed Integration execution plan finalised Integration area milestone Global key milestones Integration areas (exemplary) Legal setup clarified Retention measures initiated Financial risks assessed Signing authorities defined Customer and supplier contracts reviewed and adjusted New HR procedures and guidelines established Key people identified Operating model assessed Approach demandvs. supply definedTo-be product portfolio defined Key employee contracts adjusted Current contracts and suppliers assessed Current IT system landscape assessed Current product portfolioand customers assessedCurrent R&Dproduct portfolio assessed Target operating model defined IT migration strategy developed Compensation package defined Legal roadmap defined Go to market strategy defined Purchasing strategy defined R&D strategy developed Accounting & reporting standards established An accurate planning of the First 100 days is a key requirement to incorporate all relevant stakeholders, decide on the appropriate detail of planning, adhere to a critical path and deploy the appropriate planning tool.

7 Assets (capacities and capabilities) assessed Target asset landscape defined Actions tosecure IP defined Newco balance sheet and P&L created IT cutover plan defined Target IT system landscape defined New governance model and organisation defined 3 The First 100 days Capgemini Consulti ng is the strategy and transformation consulting brand of Capgemini Group. The information contained in th is document is proprietary. Copyright 2016 Capgemini . All rights Capgemini Consulting Capgemini Consulting is the global strategy and transformation consulting or ganization of the Capgemini Group, specializing in advising and supporting en terprises sformation, from innovative strategy to execution an d with an unstinting focus on results. With the new digital economy creating snt disruptions and opportunities, our global team of over 3,600 talented individuals work with leading companies an d governments t o master Digital Transformation, drawing on our understanding of th e digital economy an d our leadership i n bu siness transformation and organizational out more at: CapgeminiWith almost 180,000 people in over 40 countri es, Capgemini is one of theworld s foremost providers of consulting, technology and outsourcing services.

8 The Group reported 2015 global revenues of EUR with its clients, Capgemini creates and delivers business and technology solutions that their needs and drive the results they want. A deeply multicultural organization, Capgemini has developed its own way of working, the Collaborative Business ExperienceTM, and draws on Rightshore , its worldwide delivery model. Learn more about us at is a trademark belonging to CapgeminiContact: Dr. Christoph StichHead of Transaction Services PrincipalLoeffelstrasse 44-46D-70597 StuttgartMobile +49 151 4025 BarkalovPrincipalBerliner Strasse 76D-63065 Offenbach am MainMobile +49 151 4025