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Six Sigma in Acquistions

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  • September 5, 2002 at 6:08 pm #30276

    Taylor
    ★ 10 Years ★
    Member

    Traditionally I have done Six Sigma for internal processes and operations.  Now I have been tasked with conducting a Six Sigma project for a new acquisition my company has made.
    Does anyone have an approach or insight they could share on how to approach the project?  lessons learned?  what your Big Y’s/Small Y’s were?
    Thanks

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    September 9, 2002 at 12:19 pm #78725

    G S DANDEKAR
    ★ 20 Years ★
    Participant

    Accquisition is essentially a transactional processs & if you talk to the process owners , you will get the CTQs of the accqisition process.You may then quantify the CTQs & then proceed with six sigma methodology for a transactional process after forming a team with process owners as team members.
    For CTQs there are no ready answers as they are specific to the business you are operating in.
    Time taken to complete the accquisition may be a parameter
    Best luck for your project
    Best Regards
    Girish S Dandekar
     

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    September 9, 2002 at 1:55 pm #78735

    Howard
    ★ 20 Years ★
    Participant

    Todd,
    What’s the scope of your project?  Deal review process or post-acquisition integration framework?
     
     
     
     

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    September 9, 2002 at 2:16 pm #78737

    Taylor
    ★ 10 Years ★
    Member

    Specifically Post Acquisition Integration- Business Processes and Systems

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    September 9, 2002 at 2:38 pm #78740

    Leung
    ★ 10 Years ★
    Participant

    Do you know anyone in quality at GE Capital (now called just “GE” — they lost the “Capital”)? They do integrations almost monthly in their businesses, almost exactly what you are referring to. You might be able to pick someone’s brain or benchmark.

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    September 9, 2002 at 3:08 pm #78744

    Howard
    ★ 20 Years ★
    Participant

    Todd,
    I suggest that you can look at two areas first …
    *  Integration framework … you can read “Making the Deal Real – How GE Capital Integrates Acquisitions” from HBS (Jan/Feb 1998).  It’s an interesting article to give you rough ideas about post-acquisition integration by GEC.
    *  CTQs … Execution CTQs (common to all integrations & can be tracked regularly, e.g. execution completion %, budget, action item slip ratio, financial performance, etc.) & Operational CTQs (key to operational success & can be identified in DD process, e.g. skill retention, customer retention, installed base penetration, part delivery, customer satisfaction, etc.)Let’s think about your CTQs, then set measurements, analyze the processes/systems, and priorize your quality projects.

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    September 9, 2002 at 3:39 pm #78746

    Ron
    ★ 10 Years ★
    Member

    Stick with the basics. 1St review the aquisition process is it recognizeable? If not baseline the process. Next is it stable? Finally is it capapble of discerning your objective? If not fix it. And finally what can be done to optimize the aquisiton process?
    If you have been aske to get involved with an aquisition that has already been decided that is a different song.
    However, I would follow the same format: Define the purpose ofthe aquisition, obtain data ( Due Diligence) to support that decision, Analyze the data to see if the root causes for the aquisition is valid, If it is not what can be done to rectifiy.
    You have a great opportunity to break new ground in the application of six sigma. Keep us posted on your progress.
    Ron

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    September 9, 2002 at 6:21 pm #78756

    Mike Tretola
    ★ 20 Years ★
    Participant

    I worked for GE Capital as an MBB for a few years and one of my charges was to deploy a process management system for the Acquisition & Integration processes.  We did a number of things that I found helpful to include: standard VOC interviews with key stakeholders from the customers and suppliers of the process, process mapping to identify key bottlenecks, and something that we started but I never got to finish was the use of decision modeling to help make the acquisition logic more transparent for decision makers which also helps outline what it would take for a successful integration.  Overall I found that the better informed the integration team is about the rationale for making the acquisition the better off you’re going to be.  There are a number of things that we did or planned to do and if you want to give me a call feel free, 540-286-6761.
    Good luck,
    Mike

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