 |
Click to view the following case studies:
Market Dominance target for Builders Merchant
A major UK Builders Merchant took the opportunity to double its market share through the acquisition of one of its nearest rival.
The outcome of this acquisition was an £800m turnover business employing in excess of 6500 people. Brooklands CG was appointed to project manage the post transaction integration programme over a ninth period.
First up actions included the development of integration plans, including benefits, costs and timescales. Integration project teams were established – reporting to a steering committee - for all key areas with specific allocation of benefit targets.
The integration management comprised of a small team to oversee the process, with Brooklands CG as overall facilitators.
Our hands-on role in support of the integration Chairman was to ensure hard and soft issues were addressed simultaneously and to:
- Assist in the running and management of the steering committee
- Manage the overall area of costs and benefits of the process
- Monitor and provide regular reports on individual team progress
- Intervene where appropriate and help drive progress
- Facilitate team meetings where appropriate
- Provide guidance and support to teams, groups and individuals as appropriate
- Sense check and give feedback regarding the “mood and temperature” in both acquired and acquiring businesses, particularly in areas of operations geographically distant from the centre
- Create and manage “driver reports” in the area of procurement where the largest gains in benefit were targeted, and assist with supplier negotiations as and when needed
- Create and manage any other initiatives that would facilitate progress e.g., critical success factor workshops
- Assist in the creation of Q and A documents throughout the business to address questions from staff, customers and suppliers
- Give input to the support areas of communication and in particular “risk management”
- Ensure that key integration areas were not passed into the “line” too soon
The eventual outcome of the integration was market leadership and a tripling of market capitalisation.
Major PLC merges subsidiaries to maximise synergy benefits
A major UK PLC decided to bring together two of its subsidiary businesses, one supplying laminate products to the building industry and the other a major supplier of panel products to cabinet and kitchen manufacturers. The combined turnover of the two businesses amounted to around £80m.
Whilst similar in terms of geographical spread, employees and number of distribution sites, the businesses were culturally very different and had very little customer overlap. The operating methodology of the businesses was very different and all of these factors combined created a challenging integration process for the management team.
Brooklands CG was engaged for a six month period to assist the senior management team in the following specific areas:
- Development of the “new” company business plan
- Sense check and give feedback regarding the mood and temperature at all levels across the business
- Carry out a risk assessment across all functions/activities, in particular with HR at “sensitive” sites, and establish the role of the Head Office
- Assist with the creation of gravity maps to ensure correct geographic locations of new sites
- Customer research programme to gauge acceptance/resistance to the newly branded company
Major Builders Merchant acquires large Plumbers Merchant
The UK market leader acquired the second largest builders and plumbers merchant with a combined turnover in excess of £1.4bn, and staff numbers approaching 10,000.
Brooklands CG was appointed to assist in the integration process during two specific phases.
During stage one, in support of HR, we interviewed (one to one and in groups) over six hundred central function staff over a two month period to establish key issues.
The interview questions (as follow up to the survey) included the following;
- What major factor is inhibiting effectiveness (personal and company)?
- What is your one major criticism of the business?
- What is your one major note of praise of the business?
- What is your one best idea for improving the company?
The Brooklands CG role, whilst very broad, had specific focus at stage two (six months) in the following areas, where we:
- Worked with the functional integration teams, and in particular the team leaders, facilitating progress and giving input as necessary
- Chaired the steering committee
- Undertook overall project management
- Managed the area of costs and benefits (Procurement, HR and Product Thrusts) – with a combined budget of £52M
- Carried out detailed financial analysis of product thrusts
- Worked closely with HR in adding resource as and when appropriate, and intervened, challenged and drove forward initiatives as necessary
- Assisted with the “personal” and “cultural” issues that arose, and intervened where these threatened the progress of the process
- Supported HR in the area of “activity analysis” and headcount
- Assisted with central function and regional location analysis
- Managed the communications strategy
Major Ferry Operator
Following a twelve month ‘cost reduction’ project at the holding company, we were awarded a further twelve-month contract by Europe’s largest ferry company to facilitate the integration of a new acquisition into the business. The new company, with a combined turnover of some 9 billion SEK and some 7,000 employees, operates across the Irish Sea, the North Sea and throughout the Baltic region.
The Brooklands CG role covered all functions, areas and geographical locations with the objectives of facilitating, mentoring, project managing and providing ‘hands on’ project resource:
- The setting up of the Steering Group
- The development and implementation of tactical integration benefits plans
- The creation of strategic integration options and plans for discussion with the entrepreneurial owner
- Working at all levels in the organization in order to meet agreed time and benefits scales.
Project Teams were created in the areas of Sales & Marketing, Call Centres, Freight, Ship Management, Administration, HR, and IT.
Whilst financial targets were included in the case for the acquisition the first step in this pan European company was the involvement of senior management in the development and hence ownership of targets and plans.
Pan European Ferry company challenges cost
Operating in a mature market, hit by increased direct and indirect competition and suffering from the loss of duty free, the company’s cultural and attitudinal sediment made attempts to address its cost base insufficiently effective.
The challenge set was to ‘cut the fat without affecting the muscle’, i.e. customer experience was not to be affected.
Brooklands CG ensured that the issues were confronted through the creation of a Cost Gap Challenge steering and working groups. Operational Leaders were envisioned and skills sharpened (one to one and small group working), all costs were analysed from a business and customer service angle. We facilitated and mentored the development of action plans and were retained to assist with the implementation plan.
Over a three year period the business saved some £110m. Importantly, executives felt empowered, shareholders confidence was restored, the savings enabled the growth of the route and revenue structure and paved the way for the acquisition of a number of competitors.
Leading UK distribution business addresses its cost base
Operating in a personal relationship selling environment in which decentralised, branch led entrepreneurial behaviour was a key factor in its commercial success, and following a series of major acquisitions, the business found itself with a very high cost base. Attempts to tackle the situation were frustrated by Directors and key executives defending their own functional areas.
The challenge was to reduce costs without adversely affecting the entrepreneurial trading spirit. A target of £5m cost saving was set.
Brooklands CG worked in support of the Board and management teams – consolidating and analysing data, and influencing and facilitating the change process. Over a one year period some £17m of costs were saved, enhancing profitability and providing a sound base for future growth.
