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Honeywell Automation Acquisition and Integration Case Study
Leading diversified technology and manufacturing company: Acquisition and Merger Integration
Situation
A major diversified technology and manufacturing company with annual revenue of $16B had just acquired a complementary division from another company, resulting in a combined 7,000-person division.
The corporate CEO wanted a rapid and dramatically more efficient-and-effective design and implementation of the acquisition to serve as a prototype for future acquisitions.
In particular, the CEO wanted a greenfield approach (an approach that lacks any constraints imposed by prior work) to structuring the combined division and a more objective process for ensuring optimal talent selection decisions once the new structure was decided on.
Solution
Strategic Organization™ consultants assessed the structures of the two “as is” divisions.
We developed a strategic vision and “architectural logic” for the design of the newly integrated division. We then facilitated the establishment of the top 400 positions so that each role’s accountabilities were aligned with required authorities.
We helped the executives in each company assess the top 200 managers in each with respect to their current and future potential and demonstrated effectiveness—all against the same exacting standards.
We ensured the optimal filling of each of the top 120 roles in the new organization.
The strategic analysis, organizational assessment, talent assessment, and design work were accomplished using Strategic Organization™ OrgAlign® technology, with dynamic remote conferencing joining managers from as many as 12 different countries at once.
Value Provided
The acquiring company reported this was, simultaneously, the most rapid and effective merger-acquisition in their recent history.
- Fewer than half of the top 120 roles were filled by managers from the existing company.
- Over a quarter of the roles were filled by managers from the acquired company.
- The remaining quarter were filled by managers recruited elsewhere because the existing talent was not deemed qualified.
- Two organizational layers were eliminated, resulting in better and more timely decision making, and considerable cost savings.
- Many of the existing double and triple “matrix manager” relationships were eliminated by implementing a new business-unit model, resulting in more capable, efficient, and accountable cross-functional processes.