Companies often focus their efforts on defining the strategic rationale for acquiring a business in a new region, and then the specifics of the negotation, only to falter when it comes to implementing the integration. In addition to the challenge of blending two corporate cultures, the cross-border integration process must address the regional differences in cultures, business models and regulatory environments. We work with clients to develop a roadmap for the integration process, and facilitate solutions that optimize local opportunities and minimize cross-border risks in support of strategic objectives.
Implementation planning begins prior to the acquisition transaction, with identifying key drivers for the acquisition and setting goals for the post-acquisition management team. If the acquisition brings new customers, a “war room” focused on transitioning and maintaining these customers, and enabling current sales efforts to reach fruition, is usually established. A communication plan for employees and other interested parties, tailored to the cultural norms in each region, needs to be mapped out and implemented very early in the acquisition process.
As the transaction is finalized, we work with management to put together the next phase of the integration roadmap. Some elements to include: - Determine the right mix of global consistency and local identity. The right blend will bring the new business into global operations, ensuring consistency and communication, while leveraging the unique capabilities sought through the acquisition.
- Review local employment law and business culture, and develop a transition plan for employee compensation and benefits. Identify key staff members and build a retention strategy into the plan early on.
- Analyze key business processes and decide whether to integrate them across regions, or maintain them primarily in one part of the organization. Where are the “handshakes” in the new process flows?
- Evaluate infrastructure and develop an integration plan for IT networks, applications, data, and security. There may be an opportunity to develop a regional BCP capability.
Red Bridge Strategy works with your team to develop and implement integration roadmaps, leveraging local insights to quickly identify the key risks and benefits of the integration in every aspect: sales, marketing, operations, information technology, and administration. We work respectfully and sensitively with managers in both the acquiring and acquired organizations, across regional and cultural differences, to facilitate solutions that support global corporate strategies.
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