Consolidation Processes
shared services and acquisition integration

NDMA works at the leadership level -- coaching on organizational and political issues -- in parallel with your work with other consultants on data gathering and assessment to ensure the successful consolidation and integration of decentralized or acquired organizations.

A true story....

Pierre, the CIO of a Fortune-100 sized pharmaceutical and medical device conglomerate in Europe, saw the huge potential cost savings that could be gained by consolidating the currently decentralized IT infrastructure.

Using a reputable consultant, he developed a compelling financial case. He personally invested his time and "credibility chips" in selling it to the corporate CFO, CEO, and ultimately the Board of Directors.

After months of effort, Pierre's plan was approved. IT infrastructure was consolidated -- over the objections of the business units. Two months later, Pierre resigned. He won the battle and lost the war.

A happier story, equally true and a stark contrast in executive style....

During the same time frame, Preston, another CIO of a Fortune-100 pharmaceutical and medical device conglomerate, this one in North America, worked with NDMA on a different strategy.

Preston said, "I'd rather have a customer than a hostage!" He focused on building a shared-services IT business-within-a-business that earned clients' business through excellent value and great customer relations.

He raised the opportunities of consolidation to executives' attention, but with the caveat, "I've got plenty to do as it is. But if you'd like to save money and improve the quality of service, we'd be happy to bid your business."

Through participative processes and voluntary consolidations, the "market share" of corporate IT grew from approximately 40 percent to over 60 percent of total enterprise IT spending, and continues to rise. And as promised, Preston delivered better quality services at lower costs with each consolidation.

The dangers of consolidation based purely on the numbers are many:

• Complete failure due to the overt resistance of business units.

• Worse, failure to deliver on promises due to the covert resistance of business units who resent a forced take-over.

• Failure to gain benefits due to a poorly planned integration process which engenders:

  • confusion among clients and staff,

  • morale problems,

  • forcing acquired staff into existing structures and processes (rather than best of both), or

  • a structure that is simply an enlarged version of the old organization without synergies.

• Perceived failure due to expectations which are impossible to deliver in promised time frames.

• Festering client resentment which undermines the effectiveness of the entire organization.

A few hours here and there to think through the organizational and political issues is time well spent.

Using Dean Meyer as your coach and sounding board is a high-payoff investment.

Consolidation Strategies and Tactics
overview of issues....

White paper: MERGERS, ACQUISITIONS, AND CONSOLIDATIONS: achieving the synergies through a participative integration process

White paper: DECENTRALIZATION: why do business leaders choose to pay more for less?

White paper: SHARED SERVICES: establishing a competitive business within a business

Book: Decentralization: Fantasies, Failings, and Fundamentals

More on Dean's background....

Next step: To schedule a no-obligations get-to-know-you chat, contact us: 203-431-0029.