Business Continuity Planning

Successfully managing risks during merger integration

2

Collaborative BCP approach Our methodolog y is used to jointly set-up a customised tool for identify-ing, assessing, and addressing all major risks during the integ ration process. It is structured in three col-laborative workshops involving all relevant client stakeholders as well as Capgemini Consulting industry and post merger integration experts.

-moc a sreviled pohskrow tsfir ehTprehensive and aligned overview of the potential risks for ongoing company operations during the inte-g ration process. Leverag ing our risk catalogue from previous projects, these risks are amended by the proj-ect team and validated by key stake-holders of the client.

In the second workshop the risks are evaluated according to their business impact and probability, helping us to adequately prioritise the allocation of relevant resources. The last work-shop results in a detailed Business Continuity Plan, which includes a list of the prioritised risks, defined preventive and reactive mitigating

Background During the integ ration of organisa-tions the primary focus of attention often lies on achieving the targeted synerg ies and benefits. This fre-quently leads to a disregard of risks for the daily business and the seam-less continuation of operations. Ne-glecting these risks can quickly have a severe negative impact, such as

dna sessol remotsuc ro/dna laicnafina damage in reputation. As a result, the initial merger expectations may not be met or, in the worst case, the entire integ ration may fail.

Capgemini Consulting has developed a structured Business Continuity Planning (BCP) approach supporting companies in successfully manag-ing business risks along the entire integ ration process. The compre-hensive plan is focused on securing and maintaining daily operations. It effectively creates awareness for the potential risks, prepares for their actual occurrence, and provides ac-tionable mitigating measures. Thus, a BCP implementation significantly increases the probability of a suc-cessful merger.

Figure 1: BCP during Merger Integration

Phase

Milestone Declaration of intent Signing of contract Day 1 Day 100

Management ofAcquisition /Transaction

Merger Integration

Integration planning Preparation 100 Days

BCP development Execution and Monitoring of BCP

100 Days Transformation

Structured approach to assure continuity in businesses‘ operations during integration projects

Classification of risks based on their potential impacts on business continuity

Integrated set of preventive and reactive mitigating measures

Assignment of functional risk responsibilities

Comprehensive catalogue and monitoring tool for integration risks

Business Continuity Plan

Business Continuity Planning (BCP)

Figure 1: BCP during Merger Integration

Phase

Milestone Declaration of intent Signing of contract Day 1

Management ofAcquisition /Transaction

Merger Integration

BCP development Execution and Monitoring of BCP

Transformation

Structured approach to assure continuity in businesses‘ operations during integration projects

Classification of risks based on their potential impacts on business continuity

Integrated set of preventive and reactive mitigating measures

Assignment of functional risk responsibilities

Comprehensive catalogue and monitoring tool for integration risks

Business Continuity Plan

Preparation 100 DaysIntegration planning 100 Days

Days 100

© Capgemini Consulting 2016

3Business Continuity Planning

measures, an underlying monitoring and communication process, as well as clear roles and responsibilities.

Tangible results Capgemini Consulting ’s Business Continuity Planning approach deliv-ers tang ible results:

A ready to use BCP tool, includingall required information to preventand mitigate any potential majorrisks for day to day operations

An implemented monitoring pro-cess determining how to track andmonitor the identified risks

A clear assignment of responsi-bilities ensuring the right alloca-tion of tasks as well as the commit-ment of key personnel

Benefits of the collaborative BCP approach Together with our clients, Capgemini Consulting develops and implements a pragmatic and tailored Business Continuity Plan to safeguard business operations during a merger integra-tion. Successfully manag ing risks and their impact on daily business directly contributes to reducing merger costs and increasing the overall probability of merger success. Our collaborative approach creates high awareness and acceptance amongst key stakehold-ers in the client’s organisation. In addition, clients benefit from our Capgemini Consulting experts, who have an in-depth understanding of the typical risks in the respective industries and comprehensive experi-ence in the execution of merger

Figure 2: Logic of the Capgemini Consulting BCP methodology

BCP development

1 Risk Identification 2 Risk Evaluation 3 Design & Implementation

Start WS1 WS 2 WS 3(optional ASE1)

Final Delivery

Probability Evaluation

Evaluation of risks’ probabilityby Capgemini Consulting basedon prior project experienceValidation with client experts / key stakeholders

Internal Input

Existing client risk material / catalogueClient experts input

Monitoring Process Definition

Selection of monitoring toolDefinition of reporting process

WS 1

Validated risklong list

Compile andvalidate

comprehensive risk long list

WS 2

Prioritised riskcatalogue

Validateassessment andcreate prioritised

risk catalogue

Assessprobabilities andimpacts on risks

WS 3

BCP tooldesigned

Design mitigatingmeasures, define

monitoring processand allocate

responsibilities

BCP Tool established

Comprehensiveprioritised riskcatalogue

Preventive and reactivemitigating measures

Monitoring processincl. tool, metrics andpersonnel

Allocation ofresponsibilities for riskclusters

Best Practice Mitigating Measures

Definition of preventive and reactive mitigating measures based on best practices

Business Impact Analysis

Definition of weighted impactdimensions

Joint evaluation of impact alongall dimensions

1 We propose to use an ASE (Accelerated Solution Environment): a proven workshop methodology of Capgemini that helps to increase effectiveness and to faster achieve stakeholder alignment.

External Input

Pre-defined risk catalogue

Extensive experience fromvarious similar projects

© Capgemini Consulting 2016

integration projects.

Capgemini Consulting is the strategy and transformation consulting brand of Capgemini Group. The information contained in this document is proprietary. Copyright ©2016 Capgemini. All rights reserved.

Contact: Dr. Christoph StichHead of Transaction Services PrincipalLoeffelstrasse 44-46D-70597 StuttgartMobile +49 151 4025 0696christoph.stich@capgemini.com

Igor BarkalovPrincipalBerliner Strasse 76D-63065 Offenbach am MainMobile +49 151 4025 1630igor.barkalov@capgemini.com

About Capgemini Consulting Capgemini Consulting is the global strategy and transformation consulting organization of the Capgemini Group, specializing in advising and supporting enterprises sformation, from innovative strategy to execution and with an unstinting focus on results. With the new digital economy creating s nt disruptions and opportunities, our global team of over 3,600 talented individuals work with leading companies and governments to master Digital Transformation, drawing on our understanding of the digital economy and our leadership in business transformation and organizational change.

Find out more at:

www.de.capgemini-consulting.com

About CapgeminiWith almost 180,000 people in over 40 countries, Capgemini is one of theworld’s foremost providers of consulting, technology and outsourcing services. The Group reported 2015 global revenues of EUR 11.9 billion.Together with its clients, Capgemini creates and delivers business and technology solutions that their needs and drive the results they want. A deeply multicultural organization, Capgemini has developed its own way of working, the Collaborative Business ExperienceTM, and draws on Rightshore®, its worldwide delivery model.

Learn more about us at

www.de.capgemini.com

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