BEYOND the DEAL This page intentionally left blank BEYOND the DEAL Mergers & Acquisitions that Achieve Breakthrough Performance Gains HUBERT SAINT-ONGE JAY CHATZKEL New York Chicago San Francisco Lisbon London Milan New Delhi San Juan Seoul Singapore Madrid Sydney Mexico City Toronto Copyright © 2009 by The McGraw-Hill Companies, Inc All rights reserved Manufactured in the United States of America Except as permitted under the United States Copyright Act of 1976, no part of this publication may be reproduced or distributed in any form or by any means, or stored in a database or retrieval system, without the prior written permission of the publisher 0-07-164291-9 The material in this eBook also appears in the print version of this title: 0-07-155010-0 All trademarks are trademarks of their respective owners Rather than put a trademark symbol after every occurrence of a trademarked name, we use names in an editorial fashion only, and to the benefit of the trademark owner, with no intention of infringement of the trademark Where such designations appear in this book, they have been printed with initial caps McGraw-Hill eBooks are available at special quantity discounts to use as premiums and sales promotions, or for use in corporate training programs For more information, please contact George Hoare, Special Sales, at george_hoare@mcgraw-hill.com or (212) 904-4069 TERMS OF USE This is a copyrighted work and The McGraw-Hill Companies, Inc (“McGraw-Hill”) and its licensors reserve all rights in and to the work Use of this work is subject to these terms Except as permitted under the Copyright Act of 1976 and the right to store and retrieve one copy of the work, you may not decompile, disassemble, reverse engineer, reproduce, modify, create derivative works based upon, transmit, distribute, disseminate, sell, publish or sublicense the work or any part of it without McGraw-Hill’s prior consent You may use the work for your own noncommercial and personal use; any other use of the work is strictly prohibited Your right to use the work may be terminated if you fail to comply with these terms THE WORK IS PROVIDED “AS IS.” McGRAW-HILL AND ITS LICENSORS MAKE NO GUARANTEES OR WARRANTIES AS TO THE ACCURACY, ADEQUACY OR COMPLETENESS OF OR RESULTS TO BE OBTAINED FROM USING THE WORK, INCLUDING ANY INFORMATION THAT CAN BE ACCESSED THROUGH THE WORK VIA HYPERLINK OR OTHERWISE, AND EXPRESSLY DISCLAIM ANY WARRANTY, EXPRESS OR IMPLIED, INCLUDING BUT NOT LIMITED TO IMPLIED WARRANTIES OF MERCHANTABILITY OR FITNESS FOR A PARTICULAR PURPOSE McGraw-Hill and its licensors not warrant or guarantee that the functions contained in the work will meet your requirements or that its operation will be uninterrupted or error free Neither McGraw-Hill nor its licensors shall be liable to you or anyone else for any inaccuracy, error or omission, regardless of cause, in the work or for any damages resulting therefrom McGraw-Hill has no responsibility for the content of any information accessed through the work Under no circumstances shall McGraw-Hill and/or its licensors be liable for any indirect, incidental, special, punitive, consequential or similar damages that result from the use of or inability to use the work, even if any of them has been advised of the possibility of such damages This limitation of liability shall apply to any claim or cause whatsoever whether such claim or cause arises in contract, tort or otherwise DOI: 10.1036/0071550100 Professional Want to learn more? We hope you enjoy this McGraw-Hill eBook! If you’d like more information about this book, its author, or related books and websites, please click here For more information about this title, click here Contents Acknowledgments vii Introduction: Beyond the Mirage ix Part I: The Predeal Phase 1: A New Approach to Acquisitions: Creating Value in Combined Companies 2: Leveraging Intangibles: A More Effective Business Model for Mergers and Acquisitions 35 3: Framing Your Company’s Strategy to Achieve a Breakthrough Acquisition 53 4: Targeting, Due Diligence, Negotiation, and Deal Approval: Four Steps to Creating Value in M&As 89 Part II: Postdeal Integration Phase 5: Integration Planning: Positioning the Acquisition to Succeed 117 vi ❧ Contents 6: Getting Your Integration Structure Right 147 7: The Integration Team Takes Over: Six Springboards for a Quantum Leap Integration 165 8: Guiding Your Integration to Success 199 9: Building the Foundations for Quantum Leap Performance 233 10: Breakthrough: Moving to Unprecedented Levels of Performance and Value Creation 257 Epilogue: The Evolution of the Role of Acquisitions 283 Appendix A: Is Acquisition Always the Answer? 289 Appendix B: Beyond the Deal Question Set 291 Appendix C: Auditing Strategic Capabilities in the Context of the Deal Exercise 303 Bibliography Index 311 305 Acknowledgments We are indebted to the executives who participated in our research They spent extensive time with us sharing their approaches and insights from their mergers and acquisitions They were more than generous in giving us a remarkable window into their acquisition and integration efforts Our conversations were marked by exceptional candor, which allowed us to delve in great detail into their experiences and lessons learned Our contributors fleshed out the stories of what happened in their large-scale acquisitions These are some of the most accomplished people in their fields The richness of their perceptions gave invaluable input into the writing of this book Each contributed a major piece of the picture of how organizations take on the challenge of a major acquisition and make it into a positive outcome for an organization We wish to thank: • Melinda Bickerstaff, formerly vice president and chief knowledge officer, the Bristol-Myers Squibb Company • Ron Bowbridge, formerly director of project management office for mergers and acquisitions for Alcatel, currently vice president for research and development for Copiprak Copyright © 2009 by The McGraw-Hill Companies, Inc Click here for terms of use viii ❧ Acknowledgments • Randy Croyle, director of the Dow Chemical’s Mergers and Acquisitions Expertise Center • Kent Greenes, formerly chief knowledge officer of Science Applications International Corporation (SAIC) and currently president of Greenes Consulting, and his colleagues Kevin E (Ed) Murphy, senior vice president, director of mergers & acquisitions at SAIC, and Kevin Werner, formerly senior vice president of strategic initiatives at SAIC • Anthony E Kuhel, formerly core member of BP’s Group Knowledge Management Team, program manager for The Olympus Initiative (the US KM Initiative), and BP’s chief process engineer and currently managing director with Escalys • Dirk Ramhorst, vice president, Siemens Business Services Writing a book that covers new ground took considerably longer and was a far more involved project than we expected We wish to thank our spouses for putting up with the considerable time devoted to hashing out the issues, writing, and editing this book We cannot overstate the ongoing support, patience, and tolerance of our spouses, Barbara Chatzkel and Norma Weiner, for this project, which can only be called an act of love We extend our appreciation to Shannon Malolepzy, Hubert SaintOnge’s administrator, who helped us in a multitude of ways, including making sure that we set aside the time to meet despite hectic schedules We have to express our sincere gratitude to Ruth Mills, who worked extensively with us to make this book a rich, usable resource, written with clarity and precision Finally, we would like to give special credit to Leah Spiro, our editor at McGraw-Hill, for seeing the promise and value of this book, for providing insights and support, and for working tirelessly with us to bring Beyond the Deal to final form Hubert Saint-Onge Waterloo, Ontario, Canada Jay Chatzkel New River, Arizona 314 ❧ Index Company culture, springboards, 178–180 Compaq, 12, 69, 169 Conditions for integration, 141–144 Continuity of integration framework, 151 Continuity planning, governance, 136 Conversations, engaging employee vision by, 260–265 Core capabilities, 10, 258–260 Core values to guide integration, 214 Cost, 11–12, 215 Cost targets, 216 Criteria development/implementation, targeting, 94–98 Croyle, Randy, viii, 61, 90, 98, 101, 106, 109, 157, 158, 181, 189–190, 211, 215, 217–218, 225, 227 Custodial capability, postdeal, 276–278 Customer capital, 37, 40–44, 46 Customers, new (See New customers) Customer/solutions capabilities; customer-centric outside-in approach, 126–129 customer relationship knowledge scenarios, 68–69 customer strategy identification springboard, 167–171 front court (direct customer interaction), 172–174, 176 line-of-sight view, 172–177 primacy of, 200–204 D DaimlerChrysler, 8, 18–19 Day Zero approach to integration planning, 122–126, 144 Deal approval, 110–112 Defensive market approach, 13 Depth, customer capital, 40 Derailing factors: acquisition process steps, 113 breakthrough, 84–85, 279–280 guiding success integration, 229 integration and value creation, predeal, 30, 32–33 integration planning, predeal, 145 integration structure creation, 162 integration team, 195 performance, postdeal, 254–256 Different customer base company acquisition, 69–70 Dominant absorption acquisitions, 74 Dominant logic of a company, 15 Dow Chemical, viii, xi, xiv–xviii, 19, 31, 39, 61, 90, 94, 98, 100, 101, 106, 109, 157–160, 181, 189–190, 204, 211, 215, 217–218, 225–227 Due diligence on targeted acquisition, 98–107 described, 98–99 Index ❧ 315 functional focal points, 102 generic capabilities, 99–100 goals, 102 issues to consider, 103 knowledge capture/transfer, 106–107 structuring, 100–103 trust, 103–104 DuPont, 137–138, 261, 264 E Eckerd Drugs, 66 Effectiveness measures, people strategy, 191 Elan Corporation, 37, 79, 81 Emco, 102 Emotional context, postdeal, 269 Employees: engaging vision through productive conversations, 260–265 expectation management, 221–224 Engagement, integration planning, 134–139 Engines of breakthrough, postdeal, 258 EU (European Union), Evolution of acquisition role, 283–287 Expense synergy approach (cutting costs), 11–12 Experimenting to learn new company operations, breakthrough, 275 Explicit knowledge, 47–48 F Financial metrics, 149–150 Financial outcomes, quantum leap transformation, xiii Finding your path, breakthrough strategy, 78–79 Fisher, Lawrence, 77 Flow of working knowledge, 46–49 Fortune Brands, 73 Front court, 172–174, 176 Functional focal points, due diligence on targeted acquisition, 102 Functional skills transfer, 236–237 Future Shop, 171, 180 G Galpin, Timothy, 209 General Electric, 91, 111–112 General management skills transfer, postdeal, 237–238 Generic capabilities, due diligence on targeted acquisition, 99–100 Goals: attaining growth, due diligence on targeted acquisition, 102 Governance, integration planning, 132–141 continuity planning, 136 engagement, commitment and investment, 134–139 importance of, 132–133 316 ❧ Index Governance, integration planning (Cont.) leadership, 134 of new company, 118 people integration, 139 people planning, 118, 136–139 questions to ask, 133 structure for, 153 Growth goals, attaining, Growth strategy based on acquisitions, 57–58, 76–78 Growth synergy approach (growing the business), 12 Guiding integration (See Integration, guide to successful) Guiding principles, developing and implementing, 119–120 H Hajoca, 102 Hart, Kim, 263–264 Herndon, Mark, 209 Hesse, Daniel R., 202 Hewlett-Packard (HP), 12, 69, 169 Honeywell International, 91, 111–112 Human capital, 37, 43–44, 46 I IBM, 6, 284–285 India, 5–6 Innovation dimension of structural capital, 38 Inside Cisco: The Real Story of Sustained M&A Growth, 100 Inside-out approach, 202–203 Intangible assets, predeal, xiv–xv, 35–52 customer capital, 37, 40–42 flow of working knowledge, 46–49 focus on, x human capital, 37 knowledge capital model, 42–46 looking outward and inward, 49–50 quantum leap transformation, xiii questions to ask, 51 relational capital, 37, 40–42 stock of working knowledge, 46–47 structural capital, 37–40 types of assets, 36–42 value of, 5–7, 35–36 Integration: breakthrough strategy, 73–76 framework for, 148–159 guide to successful, xviii, 199–231 business plan creation, 204–207 change management, 224–228 core values, 214 cost targets, 215–216 customer primacy, 201–204 derailing factors, 229 employee expectation management, 221–224 evolution of acquisition role, 285–286 Index ❧ 317 leader selection, 219–221 partnering, 212–214 performance targets, 215–217 questions to ask, 229–230 reaction to change, 221–224 speed, 208–212 success factors, 199–200, 208, 229 critical, 200 task accountabilities, 214–215 time targets, 215 implementation, stages of, 249 performance, postdeal: capabilities, 235–238 implementation, 238–242 planning for, xvi–xviii, 117–163 activities, 117–118 “beyond the deal” question set, 295–298 building the foundation, 299–300 capabilities, 118, 129–131 conditions not right for integration, 141–144 customer-centric outside-in approach, 126–129 Day Zero approach, 122–126, 144 derailing factors, 145 governance, 132–141 guiding principles, developing and implementing a set of, 119–120 integration plan development, 295–296 integration playbook, 117–119, 248 integration structure, 296 key springboard activation, 296–298 moving to breakthrough, 300 new customers and new markets, 118 organizing for, 298–299 outside-in approach, 126–129 partnering questions, 300–301 questions to ask, 145–146 risk management, 118 road map for, 120–122 success factors, 145 timing not right for integration, 141–144 structure creation, postdeal, xviii, 147, 165–197 derailing factors, 162 integration framework, 148–159 questions to ask, 162 success factors, 162 track 1: communication and change management, 159–160 track 2: synergies, 160 track 3: work process integration, 160 team for, postdeal, xvii–xviii, 165–197 derailing factors, 195 questions to ask, 195–197 318 ❧ Index Integration (Cont.) springboard 1: customer strategy identification, 167–171 springboard 2: company strategy setting, 171–177 springboard 3: company culture and leadership establishment, 178–180 springboard 4: business logic alignment, 180–185 springboard 5: people strategy, defined, 186–192 springboard 6: IT architecture and systems, 192–194 success factors, 195–197 value creation, predeal, 22–33 acquisitions team for oversight, 30–33 derailing factors, 30, 32–33 leadership principles defined, 16, 23–24 market-based strategy, 22–23 mindset and attitude, 28–29 sense of commitment and ownership, 24–25 speed, 25–28 success factors, 30, 32–33 Integration metrics, 149–150 Integration playbook, 117–119, 248 Interdependencies, progress assessment, 248 Investment, integration planning, 134–139 IT architecture/systems, springboards, 192–194 J JCPenney, 66 Joint ventures vs acquisitions, 289–290 K Killinger, Kerry, 60, 95 Knowledge, value of, Knowledge architecture, 48 Knowledge-based integration, 242–243 Knowledge capital model, 42–46 Knowledge capture/and transfer, 106–107 Knowledge flow, 46–49 Knowledge management, core capabilities, 10 Knowledge stock, 46–47 Knowledge strategy, 48, 80–83 Kuhel, Tony, viii, 191, 210–211, 217–218, 310 L Lack of flexibility, risk management, 65–67 Leaders and leadership: capabilities, integration planning, 129 governance, integration planning, 134 principles defined, predeal, 16, 23–24 Index ❧ 319 quantum leap transformation, xii-xvi selection of, guiding success integration, 219–221 springboards, 178–180 Legacy company partnering failure, 67 Leonard, Dorothy, 48 Licensing vs acquisitions, 289–290 Lipton, Mark, 271 Loews Corporation, 73 M Market agility, core capabilities, 10 Market-based strategy, predeal, 22–23 Market demands and organizational capabilities, 49–51 Mechanistic acquisitions, Mergers and acquisitions (M&A): acquisition process steps, 89–114 acquisition readiness, xi alternatives to, 289–291 evolution of role for, 283–287 larger acquisition focus, x-xii lessons learned from previous, 292 loss of value through, x quantum leap transformation, xi value creation, xi-xii MetLife Canada, 214, 222–223 Metrics for integration framework, 149–150 Middle court, 172, 174–177 Mid-level leaders, xii-xvi Mindset and attitude, predeal, 28–29 Mulligan, Seamus, 37 Multidimensional targeting criteria, 90–98 Murphy, Kevin “Ed,” viii, 99, 310 Myers, Greg, 78 N NationsBank, 169 Negotiations with rightful owner, 107–110 New company emergence, postdeal, 253 New customers: and different ways of doing business company acquisition, 70–71 integration planning, 118 Newbridge, 121 Newell, 182–183 Nextel, 202, 263–264 Norwest, 75, 169 Norwest Corporation, 74 O Offensive market approach to acquisitions, 13 Operating model, breakthrough, 273–274 Organizational dimension, structural capital, 38 Outside-in approach to acquisitions, 126–129, 202 320 ❧ Index Outward looking, intangible assets, 49–50 Oversight, acquisitions team for, 30–33 Ownership/commitment, predeal sense of, 24–25 P Partnering, guiding success integration, 212–214 Partnerships vs acquisitions, 289–290 Paulson, Ed, 97 People management, core capabilities, 10 People planning, governance, 118, 136–139 People strategy, springboards, 186–192 bridge formation between both companies, 190–191 effectiveness measures, 191 recruiting for newly combined company, 186–190 Performance, postdeal, xvii–xix, 233–256 communication management, 250–253 continuing integration implementation appraisal and recalibration, model for, 247 derailing factors, 254–256 functional skills transfer, 236–237 general management skills transfer, 237–238 integration capabilities, 235–238 integration implementation, 238–242 knowledge-based integration, 242–243 new company emergence, 253 progress assessment, 246–248 project management, 238–241 questions to ask, 255 resource sharing, 235–236 stages of, 241–242 strategy-making, 238–241 strengths and gaps, 243–244 success factors, 254 synergy capture, 245–246 targets to guide success integration, 215–217 (See also Breakthrough strategy; Springboards) Pfizer, 132–133 Picheney, Planning, integration, xvi-xvii, 117–163 activities, 117–118 “beyond the deal” question set, 295–298 building the foundation, 299–300 capabilities, 118, 129–131 conditions not right for integration, 141–144 customer-centric outside-in approach, 126–129 Day Zero approach, 122–126, 144 Index ❧ 321 derailing factors, 145 governance, 132–141 guiding principles, developing and implementing a set of, 119–120 integration plan development, 295–296 integration playbook, 117–119, 248 integration structure, 296 key springboard activation, 296–298 moving to breakthrough, 300 new customers and new markets, 118 organizing for, 298–299 outside-in approach, 126–129 partnering questions, 300–301 questions to ask, 145–146 risk management, 118 road map, 120–122 success factors, 145 timing not right for, 141–144 Positioning acquisition, breakthrough, 72–73 Postdeal integration: breakthrough, 257–281 guiding to success, 199–231 performance, 233–256 planning for, 117–163 structure creation, 165–197 team implementation, 165–197 Prahalad, C K., 15 Predeal integration: acquisition process steps, 89–114 breakthrough strategy, 53–87 going “beyond the deal,” 286–287 intangible assets, leveraging, 35–52 value creation, 3–34, 89–114 Prioritization, progress assessment, 248 Process dimension, structural capital, 38–40 Process management, core capabilities, 10 Production function (back court) springboard, 172, 174–176 Profitability, customer capital, 40 Progress assessment, postdeal, 246–248 Project management, 10, 238–241 Q Quadrants of acquisition capability, 16–21 failure, 3–5 Quadrant I: low readiness, 17–18, 20–21 Quadrant II: getting started, 17–21 Quadrant III: advanced organizations, 17, 19–21 Quadrant IV: quantum leap, 17, 20–21 stages of, 16–17 Quantum leap transformation, 15–23, 283–287 (See also specific topics) 322 ❧ Index Questions to ask about: acquisition process steps, 113 breakthrough, postdeal, 280 breakthrough strategy, 85 capabilities, integration planning, 130–131 cost of M&As, 292–293 getting started, 292 goals of M&As, 293–294 governance, integration planning, 133 guiding success integration, 229–230 intangible assets, predeal, 51 integration, 295–298 integration framework, 150 integration planning, predeal, 145–146 integration team, postdeal, 168, 195–197 lessons learned from previous M&As, 292 multidimensional targeting criteria, 92–93 negotiation/acquisition, 295 performance, postdeal, 255 preacquisition, 294–295 springboards, customer strategy identification, 168 structure creation, postdeal, 162 vision articulation, breakthrough, 272–273 R Ramhorst, Dirk, viii, 205, 310 Reaction to change, guiding success integration, 221–224 Readiness, company’s: for acquisition process steps, for building, 9–10 for core capabilities, 10 for evolution of acquisition role, 285 for growth goals, attaining, for intangible assets, value of, 5–7 for knowledge, value of, for preparing company for acquisitions, for quantum leap transformation, 15–23 for traditional approaches, 11–14 for value creation, 3–4, 7–10 Realignment of human capital, 37 Recombining assets, 41–42 Reconfiguring business logic, 183–185 Recruiting for newly combined company, 186–190 Redesign dominant logic of a company, 15 Relational capital, 37, 40–42 Reporting, progress assessment, 248 Resource sharing, postdeal performance, 235–236 Rigid mindset, 65–67 Rio Tinto, Risk management: breakthrough strategy, 62–67 Index ❧ 323 inability to anticipate integration problems, 62–64 integration planning, 118 lack of flexibility, 65–67 legacy company partnering failure, 67 rigid mindset, 65–67 Road map for integration, 120–122 Rubbermaid, 182–183 S SAIC, 79, 99, 104, 286 Saint-Onge, Hubert, 231 Senior leaders, xii-xvi Sense of commitment/ownership, predeal, 24–25 Shedlarz, David L., 132–133 Siemens, 22, 80, 203, 205–206 Siemens AG, 79 Similar company acquisition, 69 Similar customer base company acquisition, 70 Sirius, 111 Skarzynski, Peter, 59 Speed of integration, 25–28, 208–212 Springboards: back court (production function), 172, 174–176 business logic alignment, 180–185 company culture and leadership establishment, 178–180 company strategy setting, 171–177 customer line-of-sight view, 172–177 customer strategy identification, 167–171 front court (direct customer interaction), 172–174, 176 IT architecture and systems, 192–194 middle court (marketing), 172, 174–177 people strategy, 186–192 three-court framework, 172–177 (See also Capabilities) Sprint, 18, 202, 263–264 Stages: of acquisition capabilities, 16–21 performance, postdeal, 241–242 Stock of working knowledge, 46–47 Strategic agility, core capabilities, 10 Strategic alliances vs acquisitions, 289–290 Strategic capabilities, auditing, 303–304 Strategy development: breakthrough (See Breakthrough strategy) company strategy setting, 171–177 performance, postdeal, 238–241 Structural capital, 37–40, 43–44, 46 324 ❧ Index Structure creation, postdeal, viii, 147, 165–197 accountability, 149, 155 continuity, 151 derailing factors, 162 due diligence on targeted acquisition, 100–103 governance structure, 153 integration framework, 148–159 metrics, 149–150 questions to ask, 162 success factors, 162 track 1: communication and change management, 159–160 track 2: synergies, 160 track 3: work process integration, 160 Success of acquisition, guiding integration, xviii, 199–231 business plan creation, 204–207 change management, 224–228 core values, 214 cost targets, 215–216 critical success factors, 199 customer primacy, 201–204 derailing factors, 229 employee expectation management, 221–224 evolution of acquisition role, 285–286 leader selection, 219–221 partnering, 212–214 performance targets, 215–217 questions to ask, 229–230 reaction to change, 221–224 speed, 208–212 success factors, 229 task accountabilities, 214–215 time targets, 215 Success factors: acquisition process steps, 113 breakthrough, postdeal, 279 guiding success integration, 229 integration and value creation, predeal, 30, 32–33 integration planning, predeal, 145 integration structure creation, postdeal, 162 integration team, postdeal, 195–197 performance, postdeal, 254 Sun Life Financial, 151–156, 201, 219–220, 238, 251–252 Sustainability, customer capital, 40 Swaine, Edward T., 91 Swap, Walter, 48 Swick, Norm, 95 Symantec, 41–42, 76–78 Synergies, 160, 203, 274 Synergy capture, postdeal performance, 245–246 T Tacit knowledge, knowledge flow, 48 Tall, Craig, 95–96 Tangible assets, x Target acquisitions, 22–23 Index ❧ 325 Task accountabilities, guiding success integration, 214–215 Team: acquisitions, 30–33 integration (See Integration, team for, postdeal) Thompson, John, 76 Three-court company strategy framework, 172–177 Time targets, guiding success integration, 215 Time Warner, 70, 262 Timing not right, integration planning, 141–144 Tracking, progress assessment, 248 Traditional approaches, 11–14 Trust, due diligence on targeted acquisition, 103–104 U Union Carbide, 94, 217–218 University of Edinburgh Management School/PA Consulting Survey, 224–228 US Airways, 39–40 V Value creation: postdeal breakthrough, 257–281 legacy companies into single company, alignment of values, 265–268 predeal, xiv, 3–34 acquisition process steps, 89–114 breakthrough, 14–15 case example, 6, 12, 21–22, 31 evolution of acquisition role, 285–287 expense synergy approach (cutting costs), 11–12 growth synergy approach (growing the business), 11 intangible assets, value of, 5–7 integration, 22–33 knowledge, value of, preparing company for acquisitions, quantum leap transformation, 15–23 readiness for, 3–4, 7–10 traditional approaches, 11–14 value-creating approach, 13–15 Value of intangible assets, 5–7, 35–36 Vision, 260–265, 270–273 W WaMu (Washington Mutual), 95 Warner-Lambert Company, 132–133 Welch, Jack, 91 Wells Fargo, 41, 74–75 Work process integration, 160 X XM Satellite Radio, 111 This page intentionally left blank About the Authors Hubert Saint-Onge is a leading practitioner of organization strategy, and creator of the Knowledge Assets Framework He has spent over 25 years as an executive in the oil industry (at Shell) and in financial services (at CIBC and Clarica) He currently heads his own consulting firm, SAINTONGE/ Alliance He can be contacted at Hubert@saintongealliance.com Jay Chatzkel is principal of Progressive Practices, where he assists organizations in transforming themselves into becoming knowledge-based enterprises He serves on the editorial boards of several publications, including the Journal of Knowledge Management, and has written extensively in the field He can be contacted at jaychatzkel@progressivepractices.com Copyright © 2009 by The McGraw-Hill Companies, Inc Click here for terms of use Beyond the Deal takes the point of view that a strong integration capability on the part of an acquiring company will determine its success with postmerger integration Should you be interested in determining the strength of your organization’s integration capability, you can access a Web questionnaire at www.saintongealliance.com/beyondthedeal.html that will help you assess the different aspects of this capability Whether you want to answer the questionnaire yourself or you want to involve other members of your organization in this assessment, the questionnaire will point to areas where you can take action to enhance your company’s level of readiness for an acquisition Explore how the approaches in Beyond the Deal can be specifically useful to you in addressing your merger and acquisition integration-related issues Participate in the Beyond the Deal Forum at www.beyondthedeal.net, a continuing conversation on the core themes found in the Beyond the Deal ... preparing for the integration phase of these larger acquisitions and implementing the integration effec- Beyond the Mirage ❧ xi tively These are the least extensively examined and yet the most crucial... Organized Beyond the Deal is organized into two parts: Part I focuses on what happens before you make a deal to acquire or merge with another company This is the predeal phase Chapters through cover the. .. incorporating the lessons they learned during earlier acquisitions, nor are they using their experience to transform their processes as they integrate Instead, they are simply repeating the same process