A Large Pharmaceutical Company |
Integration: what happened?
- 100 day deadline for all major decisions:
Costs Site closures; target cost reductions
Projects Selection of combined portfolio
Processes Selection of core business systems
People Organisation design & selection
- August was declared a decision ‘holiday'
- September - New Corporate Vision, Mission & Strategy
- Each part of the organisation managed the detail of Integration to suit its needs
1996 review: what worked?
Overall
- Establishing an integration office staffed with own people
- Integration completed within 12 months
- Range of communication methods
- Established confidential feedback mechanism to senior team and published results
Costs
- Had transparent integration targets to meet
Projects
- Used external experts to design an objective process for selection of projects but senior managers implemented it
People
- Differentiated between ‘stayers' and ‘leavers' in terms of HR and OD support
- Redundant staff treated fairly and generously
1996 review: what could have been done differently?
People
- Develop an earlier recognition of cultural ‘blind spots'
- Recognise the inherent bias of using ‘internal' recruitment consultants
- Understand the different redundancy practices globally
Processes
- Make decisions about IT immediately - don't get consensus. Make a decision and implement it
1998 review: key lessons
- Plan your integration process as early as possible - as soon as you have identified potential partners
- Be transparent about any cost saving targets - everyone expects them and the reality is never as bad as the rumour
- Communicate face-to-face to all staff simultaneously when ever possible particularly bad news e.g. networked satellite broadcasts; standing on a table in the canteen
- Get people at all levels of the organisation talking to each other as soon as possible
- Plan Day 1 - who do you want to keep, who do you not want to keep? - who is talking to key players throughout the organisation as soon as the news hits?
- Do as much of it yourselves - particularly the people related issues - don't hide behind consultants
1999 facts & figures
Sales: £7,983 million
- North America 45%
- Europe 34%
- Japan 6%
- Latin America 5%
- Asia Pacific 7%
- Africa & Middle East 3%
R&D Spend: £1.6 billion
Employees: 55,273
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