Post-merger integration turnaround

IMPACT

Integration of main industry player into the
Japanese market. Turnaround of eroding market share and creation of the
necessary basis for further expansion into Asia and other overseas markets.

THE ISSUE

Following a merger between two of the
industry's biggest players, poor financial performance was witnessed due to a
decreasing market share and eroding margin within a mature and deflationary
market. The client lacked a clear, integrated commercial strategy and a common
operating framework. Low productivity resulted from top-heavy, redundant
organizational structures and multiple headquarter organizations.

APPROACH

A bottom-up market analysis, including customer
interviews and sales force on-the-road studies, provided clear insights about
market needs and specificities. Commercial strategies were reviewed in light of
real market needs. Job interviews conducted across the country identified a
variety of operating frameworks and inconsistent behaviors in various regions.
Company employees were surveyed in order to identify differences in mindsets
and perceived values. Insights were verified and deepened via multiple top
management interviews, spanning several levels and positions within the
organization, and by benchmarking numerous international players.

OUTCOME

A new integrated commercial strategy was
created based on a distinct route-to-market segmentation, focusing on
service-level differentiation. A novel operating framework, founded on a clear
differentiation between the strategy department and execution, was put in place
and reinforced by a relevant set of key performance indicators in order to
provide feedback and control the system. A personalized, integrated
organization was developed, specifying responsibility from top management
levels to operating branch offices, which leveraged on the creation of a new
trade marketing department for making principal strategic decisions. A
three-year turnaround plan for reaching the company objective, which included
employee relocation plans, was presented and agreed upon.