Integration End State Vision
What the organization will look like at the conclusion of the integration.
End states involve big questions (usually initially defined by executives) to provide direction to the functional teams such as:
- What functions will you integrate now, later, or preserve indefinitely?
- What IT systems will you use in the short-term and what ones will use down the road?
- To what extent will compensation, benefits and performance management be harmonized between organizations?
- What will the product portfolio look like?
- What must happen by function for the synergies to be realized?
- What is the desired experience for the employees and other internal stakeholders for this integration project? (i.e., all employees will have a common email address, jdoe@newco.com, all employees will have access to the common intranet site, and all legacy intranet sites will be "sunsetted”)
- What is the desired End State for our customers? (i.e., all customers will have access to the full array of NewCo products and services, and pricing will be uniform in all our distribution channels)
- What is the desired End State for the community? (i.e., our legacy community outreach and charitable programs will be consolidated, and we will speak in the unified voice of our new company)
- What is the desired End State for marketing? (i.e., we will market under our NewCo brand name in all the markets we serve by X date)
Human Resources End State Statements
Organization Structure and Reporting Lines
- Centralized back office organization structure and office
- Matrix reporting structure - BU functions report solid lines into BU heads and dotted into central functional heads to enable responsiveness to deliver to customer whilst maintaining central oversight and governance
- Common HR policies across all BUs and Corporate
- Common PM system, tools and processes across NewCo
- Harmonized employment contracts across NewCo
- Common policies and procedures for code of conduct
- Common corporate vision and company culture for NewCo.
Sales End State Statements
Brand Strategy
- Each country will have its own branding strategy for its products leveraging NewCo market strengths
- Rationalized portfolio for NewCo products by country
- Standardized best-in-class service approach for all customer segments
- Common pricing scheme for distributors
- Common distributor territory and borders for NewCo products in each country
- Unified sales team for each country
- Common distributor sales rep for all products of NewCo
- Standardised compensation and incentive schemes for sales personnel
- Unified front in terms of advertising, branding, pricing, and hours of operation
Manufacturing End State Statements
Supply Chain
- Centralized procurement (for synergies especially raw material purchases, logistic services, and lease and rental services)
- Centralized R&D and technology center (leveraging combined NewCo capabilities)
- Centralized quality management office to deliver best-in-class quality standard across all plants and products.
- Optimized operations
- Rationalization
- Closure of redundant plants
- Capability across all plants of delivering best quality products as perceived by customers by using the most effective technology
Corporate, IT, Finance, and Legal End State Statements
Corporate Office
- Common corporate branding
- Common email platform and address extension
- Common ERP
- Common telephone systems
- Consolidated reporting system and processes
- Rationalized legal department