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Value
Enhancement
Post Merger Optimisation
Mergers often exploit convergent technologies and bring opportunities for economies of scale, such as supply chain, marketing, in-house IT, HR, service and operations, etc In this merger,
the service and operations functions employing 5000 staff globally, had evolved
in two very different eras. One had
organically grown over 30 years of support to a large global distribution
network of traditionally large carriers and indigenous service providers; the
other had existed for less than five years servicing a high volume commodity
market using the latest Call Centre and integrated supply chain software. The primary
strategy behind the merger was to offer seamless voice and data solutions to the
existing customer bases, treating the two environments as one and giving
competitive advantage using a one-stop approach. The challenge was threefold –
take the best practices from both, reduce total operating expense by 30% and
improve overall customer satisfaction. Change management would be key to the
success of this exercise – both internally and externally.
Commitment had already been made to the board, restructuring budgets had
already been set, and timescales agreed for the transition. The first activity
was to determine how each business was performing and what improvements were
essential irrespective of the merger. Once this was complete – it was easier
to determine if best practices from either environment would resolve the issues.
In fact, in over 75% of the cases this turned out to be the case. · Front end customer relationship management issues were addressed by combining a proven account management organisational model with the latest integrated CRM software applications · Legacy product support affected both organisations which led to an outsourcing agreement providing a 20% reduction in front end costs overnight · Combined IT development budgets were reduced by over 60% as existing systems were rolled out between the two organisations · Management overhead reduced by 30% by centralising support functions · Service marketing was leveraged allowing for re-definition of warranty based services and charge codes for non-warranty activity, and · Better disciplines in customer follow up and account based interfaces improved customer satisfaction from 73% to 85% The senior
executive who took on the challenge from the Board to restructure the service
organisation is a senior partner of The Posse. |
