prozessmanagement bei internationalen großvorhaben · integration office. established for further...

Status: November 2012

Jur Grad Münster, 8. November 2013 Kai Lucks

Prozessmanagement bei internationalen Großvorhaben

1

Status: November 2012

Active in four Sectors:

Industry, Energy, Healthcare and Infrastructure & Cities

Healthcare Energy Industry

Fossil Power

Generation

Renewable Energy

Oil & Gas

Energy Service

Power Transmission

Imaging & IT

Workflow & Solutions

Diagnostics

Industry Automation

Drive Technologies

Industry Solutions

Cross-Sector Businesses

Healthcare Infrastructure & Cities

Mobility

Building

Technologies

Power Distribution

Smart Grid

For Separation:

Lighting (Osram):

IPO realized

For Divestiture

Solel (Solar Power) closed

US Filters (Water Technologies)

2

Prof. Dr.-Ing. Kai Lucks

Siemens has developed a focused business portfolio

+13,5%

~€20 billion since 2004 into leadership businesses invested

VA

Tech

High

~1x GDP

Strong / Market leader

Challenger Weak / Follower

UGS

Flender

Siemens

VDO

De-

matic

Siemens

Mobile

Device

Siemens

Com Carrier

Bayer Dade

DPC

Sales growth

Acquisitions ~€20

bn US

Filter

CTI

Market

position

Low

Divestures

~ €12 bn

Solel Bonus

2 x GDP

3


Complex M&A

In the Medical

Sector

4


We Created the World’s Leading Diagnostics Company

Acquisition of DPC, Bayer, Dade Market leadership

1) Merger agreement with Ventana announced 22 Jan 08

Ventana (2006 sales: $238m, €193m)

Dade

Behring

Bayer

DPC

OCD (J&J)

Siemens

Olympus

Roche

BioMerieux

Abbott

Beckman

Coulter

€bn

1)

3.3

1.1

1.4

1.5

1.9

2.3

3.2

Fully integrated plat-

forms; mid/low volume labs

Market leader in customer

service

Broad portfolio

Lab automation

Molecular Diagnostics

High/mid volume labs

Leading position

in immuno-diagnostics

5


Siemens has Established a Structured Integration Process

Phase II Phase III Phase IV

Closing

Phase I

Structures & Goals

Transfer into Line Mgt.

Continued Excellence

Integration preparation

~ 6 Months ~ 1 Year 1-2 Months

Identification of Key Positions &

ensuring Knowledge

Setting of stretched

Goals

Integration office established for

further 12 months to ensure reaching

of goals

Benchmarking, for ensuring long

range competitiveness

Best-in-class

Building on identified strengths /

eliminating identified weaknesses

Improving customer experience

Improving market share

Delivering market leading profit

PMI-accomplishments

2006 20102005

Me

d M

I p

erf

orm

an

ce l

eve

l

11

Benchmarking

33

22

Core

To

pic

s

6


Complex M&A

In the Industry

Sector

7


Mechanical and control design will converge in next 10 years

Today

PLC

Mechanical Design Automation and Control Design Operation

Long-

term

5-10yrs.

PLC

Mid-

term

3-5yrs.

Mechanical Design + Operation

PLC

PLM SW vendors

(UGS, Dassault Systèmes, PTC)

PLC SW and HW vendors

(Siemens, Rockwell, Schneider)

Control Design Automation

Designer

Operation Integrated Mechanical and Automation & Control Design

PLC

code

converter

8

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Overall integration success will be measured in three dimensions

Financials / customer Milestones People

Source: UGS Integration Office

1 2 3

Holistic

view of integration

success / progress

Indicator of business performance Indicator of employee retention Indicator of integration

advancement

Indicator of sales force

performance Indicator of employee satisfaction

Sales development ($M) Milestone Trend Analysis Attrition rate (%)

Pipeline development ($M) Employee Pulse Check (%)

0

50

100

150

May 07 Jun 07 Jul 07

0,0%

0,5%

1,0%

1,5%

2,0%

2,5%


May Apr Mar

0

50

100

150


Act. 07 Plan 07 Act. 06

0%

50%

100%

Satisfied

Very satisfied

Jun 07 May 07

Un- satisfied

Jul 07

9


Complex M&A

In the Energy

Sector

10


Combination

Bonus Acquisition: Strategic Motivation for Entry in Wind Power

Building Up a

Strong Global Supplier

With Continuous Growth

of Market Share

Strengths Bonus

Proven Technology

Broad Client Base

Loyal and experienced

Employees

Singular Offshore-

Experience

Financial Strenght

GlobalSales- and Purchasing

Network

Local Presence

Strong Client Basis

Group-internal Synergies

e.g. Transmission Gears,

Generators

Strengths Siemens

Offshore Turnkey

Competence

Ability to Mange Big

Projects

Enforced Penetration of

New Markets

„One stop“ Supplier

Siemens Wind Power indizierter Umsatz [2005 = 100]

+ 48 % p.a.

80

~380

FY

2004

FY

2008

Wind Market [GW]

+ 15 % p.a.

8.1

~ 14.3

FY

2004

FY

2008

13.4

FY

2006

~250

FY

2006

Goal: Superproportional Growth by Rolling Out of Leading Bonus-

Technologies in International Markets 11


Bonus Integration: Master Plan/Schedule

Sales / Marketing

Best practice process

blueprint

HR

IT

Purchasing

2004 2005

Business Development

Project Management

Contract Management

R&D

Nov Dez Jan Feb März April

Shortlist potential

contracting partners

Introduction of new

processes at key REs

Evaluation process

risk structure (L&I D)

Integration key

financial processes

Introduction

US GAAP

Key PG reporting

requirem. Connection to

Siemens cash mgmt

Template monthly key

figure reporting

Competence profile

of key employees and positions

Harmonization of collaboration

tools and applications

Sep 05

Roadmap for applicat.

and infrastructure

Standard Siemens

network connection

Baseline: contracts,

processes, volumes

Identification of major

saving measures Introduction of

harmonized process

Realization of

quick win savings

Standard contract

portfolio

Implementation

formal LOA process

Blueprint formal

LOA process

Interim

LOA process

IPR strategy Collaboration agreem.

with A&D and PTD

R&D roadmap

(incl. direct drive)

Jun 05

BTA agreements

with key countries

Country implemen-

tation roadmaps

Country

prioritization

Concept for

German distributor

Overall partner

concepts

Business plan/

target setting

Manufacturing blue print

(incl. local content concept)

Business strategy/

planning process

Detailed

investment plan

Mai 05

Lead workshops

Accounting

Structure with 9 Integration Teams plus Communication;

Time Necessitated Around 6 Months 12


M&A

Performance

is the Key

Challenge

13


High Failure Rates

M&A is a high challenge

Professionalism promising significant

improvements

31 77 50 66 53 % Failure Rate

14


The implementation phase still bears the greatest failure risk

% of respondents

28% 28%

44%

Source: Corporate Strategy Board Survey 2006

Transaction Implementation Strategy

15


Improvement

Potential

Improvement of

performance (1)

-7,4 (a)

+ 5,5 (a)

No

Program

Program

(a) = McK Performance index

Improve-

ment

Potential Improvement

Potential

-36%

(many

Empl)

-56%

(many

countr) Big deals average

All deals average

Ability of handling size (3)

Limited data assessment, representative

study still outstanding

Improvement

Potential

M&A Performance through Experience Management

Companies with professional M&A-Management could strongly improve their

results

Sources: (1) Mc Kinsey.- (2) Accenture .- (3) Lucks: Transatlantic M&A, Managment of Complex M&A Projects

Top

Performer

Average M&A

Performer

90% more synergies (2)

Improvement

Potential

16


Challenges for

M&A Experience

Management

17


Reasoning on Standardization:

Pro Standardization Con Standardization

Without Standards no

experience build-up

High M&A frequency

High business & M&A type

similarities

Differences in business type,

Regional differences (cultures),

Differences in size (of partners)

Low M&A frequency

Solution: M&A-Framework,

covering Standards and Dissimilarities

Business experience

(curve) prevailing

M&A experience

(curve) prevailing

18

19 © Prof. Dr.-Ing. Kai Lucks August 2012

Acquisition

only

Integrated

Acquisition-

Reengineering

Overlap:

Cost Cutting

Complementarity:

Technology

closing

closing closing

closing

The Complexity is Different in Any Project Type

Siemens Definition:

Interlocking 2 Projects

Acquisition Restructure

Most Private Equity:

Stand alone Reengineering

Restructure

19


Issues on Standardization:

M&A Size

Diameter: Size

M&A Frequency

high

high

Low standar-

dization

Framework

High standar-

dization

20


Generic Paths: from Strategy to Implementation:

Take time

Time is money

SPEED

of integration

STRATEGIC LOGIC

Long-term strategic (e.g., access to new technologies)

Short-term operational (e.g., industry consolidation)

SCOPE

of integration

Few units or none

All at once

Portfolio addition

Portfolio consolidation

STRATEGY

of products and regions

Merger of equals

Take over

SPIRIT

of integration

Source: Boston Consulting Group

21


Complexity

Management in

M&A

22


Drivers for M&A Capacities & Competencies:

Simple Size

Complexity of Case

Restructuring Degree

Sales volumes,

employees

Locations,

Countries

Relocations,

Closings

23


Experience Management: Project Challenge Drivers

Employees

candidate

Locations

Reduction

Manufacturing

heads

reduction

Employees

own

Restructuring

Sales Vol. own unit

Countries

Volume

Complexity

Locations

Businesses

Value Chain

Improve-

ment

2

3

4

Sales Vol.

candidate

1

5

6 7

8

9

11 11

11 10

11 12

Cultural

Change

24


1996 1997 1998 1999

Signing 11/97 Closing 10/98

Product Spectrum

Manu-facturing

300

250

200

150

100

50

0

1995 2000

Negotiations

Pre Analysis

Team

Capacity

(Fulltime

Heads)

(since 1992:)

Post Closing Integration

Teams

Antitrust Filing

Change Management Teams Joint Exploratory

Implementation Support Team

Internal Team „Washington“

Westinghouse: Huge Efforts to Ensure Success

Total

investment

around 200

Manyears

25

26 © Prof. Dr.-Ing. Kai Lucks

Project Example: Organization PCI-Team Siemens-Westinghouse

Reporting to Steering Committee

Team members from both candidates,

plus consultants

26


Experience Management

Volume

Complexity

Restructuring

Automotive components

Combined sales 4.6 b. €

Combined employees 21,700

EBIT improvement goal 140 m. €

Factory transfer none

Lamp consumer products

Combined sales 1.5 b. €


EBIT improvement goal 188 m. €

Factory transfer 8

PG – Westinghouse SV – Huntsville

1994... 1999… 2004…

Osram - Sylvania

Power gen systems

Combined sales 7 b. €


EBIT improvement goal 1.3 b. US$

Factory transfer 4

Volume

Complexity

Restructuring

Complexity

Restructuring Volume

27


Elementary M&A

– Project Build-up

from the Bottom

28


There are different Ways to manage an M&A Project.

Here are the 4 Basic Models

Preparatory Project Dealmaking Project Contract

Controlling

Implementation

Planning

Implemention +

Controlling

Part

Project

Model

Implementation Preparatory Transaction

Strategy screening

Plan simu- lation

Evalua- tion

Due diligence/audit

Negotiations/ contracts

Negotiations, contracts

Legal audit

Due diligenc

e/ audit

Inte-gration

Perfor- mance control

Part Divesti-

tures

Step

Model Integration preparation

Negotiation & Contract Process

Change Management Process

Process

Model

Strategy & Planning Process

Matrix

Model

Staff

Function

or Value

Chain

Sub

Division

29


The M&A Project Models have different Strengths &

Weaknesses

Strengths Weaknesses

Step

Model

• Easy to understand

• Simple rules

• Useful for simple projects

• Risk of continuity

• Risk of Iterations

• Lack of coordination

Part

Project

Model

• Nearest to real situation

• Fits with interruptions

• Reality of „Part Projects“

• Risk of independent projects

• Ignoring predecessors‘ work

Process

Model

• Functional processes

• Continuity, Coordination

• Applicat: large projects

• More difficult to understand

• Discipline in management

• Knowledge of integral model

In Practice different Hybrids are in Use

Matrix

Model

• Reengineering projects

• Step-by-step-approach

• Appl.: medium projects

• Two dimensions only

• no parallel coordination

30


Process Management Example: Process Definition is Critical

Strategy

Dealmaking

Structure &Change

Information

Valuation

Communication

Controlling

Core

Processes

Cross

Support

Processes

Preparation Transaction Implementation

Internal

Permission

Readiness

at Closing

Legal & Antitrust

Human

Resources

Information

Technol Real

Estate

Functional

Support

Processes,

e.g.

Project

Start One

Yea

r 31


Standardization through the Reference-Project Model

Official

Start

Negot.

Appl.

Invest.

Appl.

Signing Closing 100 Days 1 Year

Co

re P

roc

es

ses

Strategy Check

Cand. + Path Screening

Business Case

Val. Chain + Locations

Levers Measures Program.

Organization + Processes

Readiness Plan 100-D-Implem. 1-Year-Implem. Cont. Improvem.

Legal Implementation

Post Closing Contract Management Negotiation + Contracts

Due Diligence 2 Due Diligence

Deal Structure.

Legal Permission

Strategy

& Planning

Dealmaking

Structure

&

Change

Strategy Review

Change Program.

Strategic Controlling

Business Plan

Closing preparat.

Legal Preparat. Financial Acquisition Controlling

Integration Preparation Integration Concept

Exploration

Phases Preparatory Phase Transaction Phase Implementation Phase

Support

Processes

Business

Processes

Functional

Processes Legal, Human Resources, Information Technology, Real Estate & Other

Information, Valuation, Controlling, Communication

Example: Supply Chain (Purchasing, Production, Dellivery, Maintenance…)

Carveout Concept Carveout Implementation Stand-alone Finalization

Separation Case

Gates

Transition Carve-In

32


Step Model: Assuming Definitions like in the Process Model

Start Negot.

Appl.

Invest.

Appl.

Signing Closing 100 Days 1 Year

Strategy Check

Cand. + Path Screening

Business Case

Val. Chain + Locations

Levers

Measures Program.

Organization. + Processes

Readiness Plan

100-D-Implem.

Negotiation + Contracts

Due Diligence

Deal Structure.

Strategy &

Planning

Deal / Transaction

Structure &

Change

Strategy Review

Change Program.

Business Plan

Antitrust Prep.

Legal Implementation

Post Closing Contract Mangement

Due Diligence 2 Antitrust Proced.

Closing preparat.

1-Year-Implem.

Cont. Improvem.

Strategic Controlling

Financial Acquisition Controlling

Integration Preparation

Integration Concept

Exploration

…the Working Packages

and the Management Challenges are the Same

33


Step Model: An M&A Boutique’s View

Source: Aschenbach Corporate Finance 34


Path

Screen

Explo-

ration

Due

Dili-

gence

Busin.

Case

Integr

Prep. 100

Days.

Con-

tracts

One

Year

Information Process

Measures Planning Process

Communication & Change Process

Controlling Process

Valuation Process

Legal Process

Negotiation

Permission

Readiness at

Closing

1

2

3

4

5

6

Hybridmodell bestehend aus Projektstufen

und durchgängigen Prozessen

Strategy

Check

Ein Lösungsansatz für kleinere Projekte

35

Prof. Dr.-Ing. Kai Lucks August 2012 36

Bei hoch-komplexen M&A-Projekten wird das Design

weitgehend durch die spezielle Aufgabe bestimmt

Beispiel Projekt Alstom Industriekraftwerke: 4 Stufen, 2 Sorten von Teams

Step 1: From strategic logic to clear integration targets

Step 2: From clear integration targets to intelligent measures

Step 3: From intelligent mea-sures to implementa-tion prerequisites

Step 4: From prerequisites to implementation

Phase I Phase II

"Achievements" "Goals" "Potentials" "Commitments"

Functional teams

Subdivisional teams

Transition depending on

• Team tasks

• Team scope

• Cross-functional

coordination requirements

36


Functional teams

Subdivisional (GZ-)teams

Steering committee (Voges, Kley, Lucks, Stieler, Behrens)

Integration Office ... CD S2 - Alex

Team Steam

Turbines

Team Gas

Turbines

Team Com-

pressors

Team Oil & Gas

Team Power Plants

Team Service

Team Supply Management Sponsor Hartwig

Team Manufacturing Sponsor Butz

Team International Sales Network Sponsor Ehrenberg / Stahl

Team Service Network Sponsor Tiefenbach

Team R&D/Technology Sponsor Southall

Team Accounting/Controlling Sponsor Biendarra

Team IT Sponsor Reinecke

Sponsor Team HR Peyton-Jones

PGI management team (= Sponsors)

Integration management (Balling)

Closing team (Bopp, Brückner)

...

Sponsor Team Communications Schütz

Beispiel: Matrix-Aufbau beim Projekt Siemens Alstom

Industriekraftwerke

37


Start Negot.Appl. Invest.Appl. Signing Closing 100 Days 1 Year

Capa-

cities

Time

Strat /Struct

Team

Exploration

Team Legal, Tax &

Antitrust

Project

Manager

Steering

Committee

Project

Owner

Integration

Preparation

Team

Strat / Struct

Team

Negotiation

Team Legal Team

Tax

Team

Antitrust

Team

Human

Resources

Valuation

Team

Tax Team

Manufacturing

Team-Leader

Due Diligence

Team

Information

Technology

Intellectual

Property

Compliance

Steering Committee Project

Owner

Integration

Manager

Strat /Struct

Team

Post Closing

Contracts

Change

Team Information

Team

Value

Management

Team

Communication

Team

Business 1

Reporting Real

Estate

Information

Technology Cotrolling

Purchasing Manufacturing Marketing

& Sales Service

Location 1 Location 2 Country A Country B

Project Office Human

Resources

Business 2 Business 3 Business 4

Steering Committee Project

Owner

Die Komplexität nimmt mit fortschreitendem Prozess

grundsätzlich zu

38


Overall Integration Office

Modules

Tasks

Project

steering and

administration

E.g.:

• Monitoring of

project progress

• Coordination of

meetings

• Preparation of

Steering

Committees

• …

1

Change

management and

communication

E.g.:

• Communication

time schedule

• Regular sound

checks

• …

2 Readiness for

Day One

E.g.:

• Checklists and

framework for

readiness issues

• Consolidated

readiness cockpit

• …

3

Base lining,

target setting,

impact controlling

E.g.:

• Request

coordination

• Target setting

methodology

• …

4 Integration

in RCs

E.g.:

• Methodology

support for RCs

• Support of

selected RCs

• …

5

Das Project Office am Beispiel VA Tech wurde schon vor dem Closing aufgesetzt

Komplexe Projekte werden bei Siemens durch ein

umfangreicheres Projektbüro gesteuert

39


0

10

20

30

40

50

60

70

80

May

03

Jun

03

Jul

03

Aug

03

Sep

03

Oct

03

Nov

03

Dec

03

Jan

04

Feb

04

Mar

04

Apr

04

May

04

Jun

04

Jul

04

Aug

04

Sep

04

Oct

04

Nov

04

Dec

04

Average

FullTime

Employees

per month

Siemens Alstom Industriekraftwerke: Team-Kapazitäten

BCG Bearing Point

Internal

Closing SGT

Closing MGT + IT

Transfer to operational Business

40


Siemens M&A

Knowledge

Management

41


Wie kann man Komplexität bei M&A-Projekten

beherrschen? – 7 Regeln

Fangen Sie mit überschaubaren Projekten an 1

Entwickeln Sie ein Grundmodell zur Projektführung für M&A 2

Sichern Sie die Konsistenz vom Anfang bis zum Ende 3

Besorgen Sie sich die notwendige Kapazität von Anfang an 4

Beschaffen Sie sich Erfahrungsträger, intern oder extern 5

Investieren Sie in die Transaktion und in die Implementierung 6

Bauen Sie ein Wissensmanagement-System auf 7

42

43

Wissensmanagement muss alle Weichenstellungen bei

M&A beherbergen

= Handlungsoptionen, schwarzer Pfeil: gewählter Pfad

• Unternehmen A • Unternehmen B

Entscheidungskette Themen und Handlungsoptionen, z.B.

Strategie

Kandidatenwahl

Geschäftsdefinition

Transaktionsform

Geschäftsprozesse

Integrationsmodell

Rechtliche Strukturen

Führungsstrukturen

• Ausbau aus eigener Kraft

• Akquisition

• Rückzug

• Produktgeschäft, Systemgeschäft... • „Make or Buy“

• Auktion • Direkterwerb • Ausgliederungen

• Separat lassen

• Organisationen aneinander hängen

• Fusionieren

• Standardisiert • Operative Aufgabenteilung • Outsourcing

• Holding • Konsolidierung • Rechtsform

• Zentralisiert • Divisionalisiert • Horizontalisiert

Ziele • Finanziell • Strategisch • Wert


43


Intranet Site Only a closed user group has

access to it. As a part of the

registering process the

Knowledge Base Team will

check the user data before

providing user ID and

password. All users are obliged

to use the material to the

advantage of Siemens only.

The Siemens Knowledge Management Base on the Intranet

Introduction General information

about the M&A

Integration Process and

the Knowledge Base

Management & Controlling Controlling and project

management framework for

overall integration

management tasks

Modules Detailed information about

integration actions. Each

module offers success

factors, methods,

milestones, examples

and contacts.

Network & Transfer Facilitates knowledge

exchange and best practice

sharing with contacts,

newsletter, current activities,

events and training offer

44

45

System of Knowledge Modules as of Start 2001….

R&D

Technology

Procure-

ment

Manufac-

turing

Sales and

Marketing

Logistics Service and

Maintenance

Strategy and Planning

IT

Communication

Accounting and Reporting

Auditing

Human Resources

Real Estate Management

Risk Management

Quality

Operative Functions


….to be Continuously Complemented

45


The M&A Process House Approach

90 Days

Project Start

P-Vor- lage

1 Year

I-Vor- lage

Clos- ing

Sign- ing

Implementation Preparatory Transaction

General Project Management

Strategy & Structure

Dealmaking

Change Management

Core Processes

Support Processes – cross functional (e.g. Valuation)

Support Processes – functional (e.g. HR)

Business Processes (e.g. Supply Chain Management)

46


Siemens Integral

M&A Project

Management &

Controlling

47


Ongoing Business

Our integrated process framework

builds the basis for sucessful M&A projects

Know-How Transfer, Improvement

Integration

Carve out / Stand alone

Acquisition

Joint Venture

Divestment

Post

Closing

Management


Strategic Planning M&A Projects

Clear processes are a pre-requisite of successful M&A Projects

48


Q-Gates and predefined formats ensure consistency over

the entire process

Performance

Controlling Strategy

A two step decision approach and consistent

deal tracking ensures high success rates of M&A Projects

Pre Signing

Decision

Pre Negotiations

Decision


49

50

Linkage of Processes and Controlling Tools

Tools for controlling:

Status of completion

Target agreements

Measures follow-up

Scorecards

Management & Controlling - Cockpit „Controlling“ Measure progress

Control

achievements

Communicate

success

Development of a Project Controlling Cockpit


50


Integration Cockpit

The Cockpit elements symbolize the key topics of integration

management. It helps the integration manager to manage and control

the important issues.

Scope and

Goals Valuation Business

Plan

Action

Plans

Culture and

Communication Teams and

Terms

Integration Management & Controlling Cockpit

51

52

Example Siemens Westinghouse: „From Levers to Actions“

Benchmarking Baselining

(top down)

Massnahmen

(bottom-up)

(EBIT on Sales)

Competitors

Profit

before

Factor cost

increase

Price

decline

Goodwill/

Restruct.

Volume

Degression

Profit goal

Productivity Purchasing

Manufacturing

Best practice

comparable industries

Average

savings

Purcha-

sing

Industry

competitor

Funktionen

(top down)

Purchasing

volumes


52

53

„Status of Completion“ Measures the Progress of the Actions

Management & Controlling - Cockpit „Controlling“

1 Definition of

approved

integration goals

2 Starting points

quantified

analytically

3 Action

fully

elaborated

4 Action

totally

implemented

5 Action

implemented with

impact on cost

Define the goals

based on:

- M&A goals

- Planned synergies

- Combined

business plan

• Plans specified

• Potential quantified

• Controller

nominated

• Due date fixed

for stage 3, 4 and 5

• Action sheets filled

in:

- Prerequisites

identified

- milestones

declared

- Potentials

evaluated by using

quantity / value

approach

- actions signed off

- team leaders start

implementation

• Implementation

prerequisites met

(action plan

executed in full)

• Due date fixed

for stage 5

• Actions implemented

with impact on cost

• Impact on cost

traced by the

accounting system

The 5 stages of „Status of Completion“ method


53

54

Instruments: Status of Completion Plan

Development of Goal Fulfilment per DD/MM/Year Special Requirements for Action:

Business: Function: Location: Report No. / Dat.

1 2 3 4 5 6 7 8 9 10 11 12

Status of Completion (Härtegrad):

HG 1

HG 2

HG3

HG4

HG5

Goall Reached

1 2 3 4 5

# Measures

Month


1. Definition of agreed

integration goal

2. Starting points

quantified analytically

3. Action fully

elaborated

4. Action totally

implemented

5. Action implemented with

impact on cost

54

55

Instruments: Target Agreement with Management

Business Unit

Targets

Management

Management

Management

Management

Management

Management

(Amount) (Amount) (Amount) (Amount) (Amount)

Signature Signature Signature Signature Signature Signature

(Total

At)

Supply Management

Sales Network

Overhead / HR

BU 1 BU 2 BU 3 BU 4 BU 5 BU 6 Functional teams

Savings Targets per Business Unit (in Mio. €)

Manufacturing

R&D/Technology

(Amount)

Functional

Targets

(Amount)

Management

Signature

Accounting/

Controlling

Others

IT


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Org.-Unit: Reference Calculation Project

System No. System Title:

Gas

3751

Business Field: Gasturbine

Exhaust Gas System

GuD 2.94.3A2ZGK5

Measure Title:

System No.

5

PA/CM03

Measure No.

Umbrella Agreement for Diffuser

Prerequistes

No. Milestone Deadline Actual

1.

2.

3.

4.

5.

6.

7.

Transfer Implementation to

stage 2

Relevant suppliers identified

Qualifikation / capacity of

supplier approved

Binding offer received

New cost reflected in

reference plant calculation

Measure appliaction in first

project

Booking of new cost

Cost Impact: A Savings

Sum: savings p.a.

1 HW/SW Savings

2 Engin. Hours

3 Project Multiplier

4 PM static

Item 99 00 01 02 03

Cost Impact: B One time cost

One time cost

Investment

99 00 01 02 03

Responsible for Name Date Signed

Cost target

Implementation

Implem. support

Instruments: Measures Follow-up Datasheet

Example: Siemens-Westinghouse


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57

0 %

5 %

10 %

15 %

20 %

25 %

30 %

35 %

40 % Name of

organization

Level required

Presence of Management in target organization

Definition: days of presence in target

org from overall

04/00 05/00 06/00 07/00

Scorecard Window open „on click“

08/00 09/00

Financials

Filling of cost gap

Capital turn around factor

Client & market

New opportunities

Client economics

Internal processes

Construction hours

Final assembly time

Introduction of SAP

Employees / Innovation

Combined management meetings

Meetings with target employees

Number of job rotations

Volume of combined R&D

Defined Scorecard Follow-up Items

Scorecard-Implementation for Follow-up Management

Example Siemens Rail Systems


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58

Project Milestones Graph

12.991.002.003.004.005.006.007.008.009.00

10.0011.0012.001.012.013.014.015.016.017.018.019.01

10.0111.0112.011.02

12. 99

01. 00

02. 00

03. 00

04. 00

05. 00

06. 00

07. 00

08. 00

09. 00

10. 00

11. 00

12. 00

01. 01

02. 01

03. 01

04. 01

05. 01

06. 01

07. 01

08. 01

09. 01

10. 01

11. 01

12. 01

01. 02

02. 02

Start of project [D1] Start of Requirements Eng [D2] Start of Coding [D3]

Start of Sys/Integ Test Start of Beta Beta Acceptance

General Availability [D4]

Milestone-Trend-Analysis

Fallbeispiel: Siemens Shared Medical Services


58

59

Change Management: The M&A Roller Coaster

Quelle: Fujitsu-Siemens


59

60

Correspondence of Structuring versus Communication

Structural Goal Structural Measures

Communication

Feedback

Cultural Goal

Controlling

Strategy &

Structural Level

Culture &

Motivational Level


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Complex M&A Projects Can Become Successful

– Even in Heavy Weathers

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