Management System Integration
How to achieve breakthrough synergy following
Mergers, Acquisitions, Corporate Realignments, Divestitures and Reorganizations
Management system integration is the combining of more than one system due to a merger or acquisition. The system may be Quality, EHS (Environmental, Health and Safety), Finance, Manufacturing, Sales, etc. It is a very complex activity and must be done in a systematic way in order to be successful. The key to success is to finish with a system that is efficient and cost effective. Best practices and synergies must be identified and utilized. What follows is an approach that works.
The first order of business is to form the implementation team. There should be representation from each of the divisions, and the team leader can be an internal or external person. (Depending upon the experience level of available internal resources, the external resource will either lead or facilitate the team.)
PHASE 1 - Define the existing organizations
This is a fairly simple activity which begins with a review of the current organizational charts (provided they exist). If charts do not exist, interview each of the department managers and develop them. It is at this point we develop the communication plan. Who is to be told what? When should they be told? Who is to do the telling? It is important that we communicate openly and honestly if we expect cooperation from the people involved.
PHASE 2 - Measure who does what, when and how
Phase 2 requires attention to detail. The integration team will interview representative employees from management to staff workers. The team will capture data which identifies value added work in a quantifiable way. The team will also create buy in to the new organization during the interview process by making it clear to each interviewee that their input is valuable to the new design.
PHASE 3 - Analyze the data collected in Phase 2
In this phase the team can now take a close look at each organization. Most likely they will be similar in some ways, and very different in other ways. An outside resource can provide tools to help the team form objective conclusions. It is here that we strive to clearly understand the organizations and how they operate.
PHASE 4 - Improve the organization, focusing on synergy, and best practices
Now we develop the new, fully integrated organization. We implement best practices from the former departments and use a synergetic approach. The team will use various tools to accomplish this in an objective way. We are looking for the most efficient organization possible and utilize the data and analysis from the earlier phases
Phase 5 - Control the redefined organization. Develop new organization charts and documented procedures.
This is the implementation phase. The new organization is defined, documented and communicated. A training plan is developed and implemented. People must understand their new roles and responsibilities, and it is imperative that we provide them with the tools to gain this understanding.
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