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Using Six Sigma Tools/Approach to Maximize Mergers

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Viewing 9 posts - 1 through 9 (of 9 total)
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  • #51209

    RCS
    Participant

    I’m interested in discussing the experience/learnings from others who have applied Six Sigma tools and approaches to corporate mergers and acquisitions.  My interest is less about experiences with specific projects and more about where Six Sigma can provide the greatest overall value to the acquisition… both when the goal is complete integration of processes and also when the goal is to allow separate processes, but ensure they are aligned.
    Ron   (317) 277-7390

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    #177256

    SixSigma Hawk
    Member

    Ron,
    I finished an acquisition six months ago.  The corporation we acquired, though profitable, was behind in technology and sophistication in the related processes.  The only “Six Sigma” that was done was in the Lessons Learned portion of the project in which we identified how we could have improved the process of acquisition.  We also identified processes at the acquired company that we wanted to explore further to determine if we could integrate it into our company.

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    #177264

    Mike Carnell
    Participant

    RCS,I have been involved in this a few times. You can contact me if you like at [email protected]

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    #177269

    Darth
    Participant

    Hey Ron,
    Mike is a good guy to talk to. Mike, Ron is a good guy also. Since I know both of you, I can recommend the legitimacy of both so hopefully you can have a fruitful conversation. Ron, if you need a more personal intro to Mike, let me know. Mike, if you can get Ron to pay you for your time, please forward the usual commission :-).

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    #177274

    Mike Carnell
    Participant

    Darth,The currency of choice is Don Julio?Regards

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    #177276

    Gary Cone
    Participant

    Ron,You might also look at how Danaher does integration of acquisitions
    – they are probably the best in the business – they use lean principles
    to basically pay for the acquisition.

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    #177478

    Dayton
    Member

    I’ve been involved in several large scale pre-acquisition due diligence reviews, and the presence of an active and seemingly viable Lean Six Sigma program in the “to be acquired” entity gave some assurance that their internal process development and optimization mechanisms were likely well thought-out and applicable to their needs – but that was obviously a subjective add to the more objective discoveries unearthed in the documents and explanations asked for and provided.
     
    I’ve also been involved in and led several post-acquisition on-boardings, the last of which both we, the acquirer, and the acquired had viable Lean Six Sigma programs and I found that the continuous improvement groups became the lightening rods in leading an effective assimilation.   Each functional group, e.g., finance, marketing, R&D, manufacturing, etc.,  was aiming more at self-preservation and “selling” their methodologies to the other, but much of the identification of best practices, relative contribution levels of associates, and the simplification of processes and elimination of redundancies came out of the first meshed and optimized continuous improvement groups.   They became an objective and fact-based resource that senior leadership could look to in providing needed evaluation, input and, in certain cases, deflection.  But, as effective as this was, it was more useful in ongoing refinement and optimization than in making the tough front-end calls that the street is looking for as immediate reasons to acquire and the immediate high-impact elimination of redundancy.    Also, as a bit of a disclaimer, these mergers/acquisitions were all in the molecular diagnostics, medical device, and pharmaceutical arenas which arguably already have (relatively) well-developed and documented processes.    Vinny  

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    #187413

    Silviu
    Member

    Hello,
    I am in search for information on six sigma and merged companies. I find the discussion interesting.
    Our case: we will merge next year summer. One company is mobile operator, second company is fixed operator. Fixed operator owns mobile. Mobile operator has Six Sigma program (3 years), fixed has unsuccessful attempt (5 years ago) to implement Six Sigma. I sit with mobile.
    Question: how to assure continuity of Six Sigma in new company?
    What we consider to do:
    -do integration projects with Six Sigma
    -increase communication of our Six Sigma program
    -start with training programs of Six Sigma in merged company

    Any advice is welcomed
    Silviu

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    #187414

    Darth
    Participant

    Check the literature. Bank of America used Six Sigma processes during its merger and acquisition of Fleet Bank a few years ago.

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