successful m&a how to bridge corporate cultures

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Successful M&A:

How to Bridge Corporate Cultures

Sep.2009

Original Edition

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Index

Background, Significance& Scope of the Project

Action Plan & Milestone

Survey Output & Case Study

Culture Integration Model

Summary

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M&A in Auto Industry

4

M&A Result

65%

Failed!

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Facts of M&A Failure

85%80%

45% 45%

30%

culture conflict no M&A plan lack of understanding of industry and company

management problem poor M&A experience

Facts of M&A Failure

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Project Scope & Our Approach

find ways and make a M&A Culture

Bridge Model to Smoothen Culture

Conflict in M&A and give our Suggestion to the Executives.

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Corporate Culture Definition

Substance culture：Products & Other Parts which

Employees Made

System culture：Organization Policy & System

Behavior culture：Employees Behavior in Daily

Work

Spirit culture：Vision, Value ,Mission which will be the

core parts in corporate culture

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Index

Background, Significance& Scope of the Project

Action Plan & Milestone

Survey Output & Case Study

Culture Integration Model

Summary

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Action Plan

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Phase Content description Approach Due date

Sort & define

M&A Definition & Process

7th May.

2009

Corporate Culture Definition

Research all kinds of materials

about corporate culture in M&A Define “How to Bridge Corporate Cultures”

Key factors to measure M&A success

Survey

Find survey targets Complete survey map

11th June,

2009

Complete survey questionnaire Survey Questionnaire

Survey Allocation Survey from C-level to line

workers

Share survey results in team members Data analysis

Deep dive

Establish Model and find solution

15th July.

2009Discuss with executives and get feedback Make an appointment

Complete a list of suggestion Action plan

PresentComplete presentation materials

30th Sep. 2009

Rehearsal

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Index

Background, Significance& Scope of the Project

Action Plan & Milestone

Survey Output & Case Study

Culture Integration Model

Summary

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Survey Map

• Shanghai

Headquarter

GM

• Shanghai Branch

GM

• Wuhu JV

GM

• Nanjing JV

GM

• Hefei JV

GM

• Shenyang Branch

GM

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Other Company Cases

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Index

Background, Significance& Scope of the Project

Action Plan & Milestone

Survey Output & Case Study

Culture Integration Model

Summary

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Culture Bridge Model

Before

M&A

• Survey & Assessment

During

M&A

• Build & Maintain

After

M&A

• Cultivate & Enhance

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Key Issue in Culture Bridge

Business Operation

Communication

Human Resources

精神文化

制度文化制度文化

Substance culture

System culture

Behavior culture

Spirit culture

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Culture Bridge Model

Survey&

Assessment

Build&

Maintain

Cultivate

&Enhance

•Business Model

• Management

System

•M&A Team

•Business Kick off

•Set down Targets

•Establish System

•HR System

•Behavior Feature

•Introduction for

new ones

•Performance

Management

•People

Development

•People Localized

•Executives

Discussion

•Internal

Communication•Lesson Learned

Business

Operation

Human

Resources

Communic

ation

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Process Analyzing Map

Input

Form/Tools

Index

Process

Culture BridgeOutput

People

Culture

Assessment

Integration

Plan

M&A Team

Lesson&

Learned

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面试面谈

人员交流

各类培训

业绩管理

People

& Business

Achieve Target

流程建立

体系完善

Process

Communi

cation

Human

Resource

Business

&

Operation

输入

工具/表单

衡量指标流程

文化整合 输出

人员

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Input 输入

工具/表单

衡量指标流程

文化整合 输出

人员

Business Plan

RelationshipOrganization

Structure

Human

Resources

Culture Assessment

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Culture Assessment Process

Kick off Meeting

CEO

Interview

SurveyFocus Team

Sharing

ReportDecision

Make

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Culture Assessment Facts

Validity

Mind

Performance

Coterie

Efficiency

Process

Action

Relationship

Insight

Org Structure

Strategic Target

Tradition

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Analyze Module

1

2

3

4

5

Mind

Performance

Coterie

Process

ActionRelationship

Org Structure

Strategic Target

Tradition

Foreign-Founded

State-Owned

Validity

Efficiency

Insight

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People Integration Plan

Business Integration Plan

Operation Process

Training Plan

Mutli-level Audit

Best Practice

Form & Tools输入

工具/表单

衡量指标流程

文化整合 输出

人员

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M&A Team

Launch Manager

BD Manager

HR Project Manager

Functional Support

Consultant Firm

25

Lesson & Learned

M&A Shining-points

Lesson & Learned

M&A Checklist

26

Index

System Audit

CID

Retention Rate

ROS

Employee Engagement

输入

工具/表单

衡量指标流程

文化整合 输出

人员

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Summary

Begin with your heart

From inside to outside

From top to down