M&A - integration and synergies

Selecta

The situation:

• Selecta is a leading self service retailer in Europe, owned by one of the world’s largest PE firms, KKR
• KKR wanted to secure a strong growth and earning of Selecta
• One of the main competitors in the market, PelicanRouge, had been identified as an M&A target, and a LoI had been signed
• My job was to secure a smooth integration on the leadership, organisation and people side of both companies

Action:

• HR integration preparation (roadmap)
• Establishing an FTE baseline including full costs of both companies
• Talent & Retention (identification of talent, designing retention packages, establishing the newco talent and performance management system)
• Organisational engagement (mainly through a Pulse Check) resulting in communication activities
• Designing the Top300 compensation & benefits structure (applying Mercer’s job evaluation and benchmarking methodology)
• Organizational design and blue print of the newco
• Designing the newco Purpose and Values (from Selecta Values to leadership behaviour and competences)
• Acting as a strong speaking partner to the Executive Committee members including the CEO and regional Managing Directors

The result:

• The above work was completed between signing the SPA and closing of the deal, March - August 2017
• The combined HR integration roadmap (see above action points) was ready to be launched upon closing of the deal

Growth - Restructuring

Gategroup - Copenhagen 2010-15

The situation:

• Clean up after the fraud case, CHF 23m
• Losses over 10 years accumulated at DKK 500m (EBITDAM), breakeven end 2015
• Inflexible labour force, +20% inside the fence, strikes, low productivity
• Very weak management (in fact in the hands of 3F, the major union) 

Action:

• Recruitment of new MD and management team
• Cancelled all 30 CBAs and carried out union negotiations in a hostile environment
• Reestablished the commercial contact with SAS on a top level, which paved our way back to the negotiation table

The result:

• Breakeven of the business secured
• Negotiated 20 new CBAs giving more flexibility and productivity, peace secured for 3 years

Gategroup - Somewhere in Europe

The situation:

• An airline wanted to spin off their airline catering as it was loss making
• Partly state owned
• Strong union opposition
• Inflexible labour force, state DB pensions and benefits, strikes, low productivity 

Action:

• Redesigned a new set of CBAs from the ground
• Established a new organisation by merging two existing ones
• Complete on boarding and integration plan developed (from culture to operation)
• Recruitment of the management team 

The result:

• A new company established ready to operate
• A clear set of CBAs in a highly unionised environment

Gategroup - Culinary Board

The situation:

• Insufficient focus on the premium carriers in terms of the high end food quality and catering
• Strong competition from other players in the market causing losses of premium carrier contracts due to quality in the premium classes
• Lack of premium quality chefs in the production

Action:

• Support the design of a new Culinary Board incl. roles, responsibility, structure
• Recruited 2 external, highly renowned chefs for the Board
• Supported the design of training programmes within service and culinary 

The result:

• Gategroup has reestablished its brand for quality and is beginning to win back lost premium carriers

 

Restructuring

Gategroup - Belgium 2012 (Chairman, very hands on)

The situation:

• Annual loss of €4m
• Airline catering loss making, de-icing and cabin cleaning profitable
• Only 2 operators in the airport made price increases difficult, only one tourist operator accepted price increases

Action:

• Intensive HR support to local management during the transformation
• Union negotiations
• Recruitment of new MD and other key personnel
• Organisational redesign incl. new roles
• Participated in the divestment of the business 

The result:

• The business almost reach breakeven
• Several options analysed, eventually sold to a competitor 

Gategroup - Germany 2012 (acting MD)

The situation:

• Threat of losing a very profitable airline customer in an airline hub due to security breach in another hub. The airport hub was loss making of €4m p.a.

Action:

• Carried out a difficult union negotiation
• Acting MD for 3 months
• Recruitment of a new MD for Germany 

The result:

• Contract secured through intense discussions/networking with customer and “forcing” the union to accept a security solution

 

Growth

Alfa Laval 2000-2007

The situation:

• No efficient communication between sales organisation and central market organisation
• Due to transition from product organisation to customer segment organisation there was a lack of a suitable business strategy process
• The country sales subsidiaries were transferred to a pure sales organisation setup and therefore there was a need of reinforced sales training
• The company was coming out of a PE ownership and lacked growth 

Action:

• Established the Alfa Laval University with internal and external board members
• Designed a new training programme for the global sales force
• Project managed both a sales project (Accelerator) and a strategic marketing project (Connect)
• An annual strategy process with the Top50 leaders was introduced (“Fill the Valley”), which resulted in identification of additional revenue and business in a down turn business cycle. 

The result:

• The sales people were given a sales template and tools and the marketing strategy was simplified and was fully connected to the sales process
• A strong performance and sales culture was implemented with the sales force
• An annual business development process is now in place helping the business to grow

 

Growth - Restructuring

Coloplast 2009

The situation:

• The company was lacking behind on all benchmark parameters in the medical device industry
• Time to market was slow and each sales subsidiary redeveloped the products that came from the central R&D
• No coherent strategic direction due to a high degree of autonomy in the sales subsidiaries

Action:

• Project managed the Chronic Care project for 6 months
• Complete analysis of current sales set up incl. roles and responsibilities 

The result:

• EBITDAM went from 13% to +33% over 3 years
• A blue print for a sales organisation, lean and quick with a strong sales focus and with clear roles and responsibilities
• Market value has more than tripled
• Coloplast is today the market leader and benchmark in almost all parameters

 

Talent Management

Rockwool Group 2008

The situation:

• As part of the company’s growth strategy a people agenda was developed with special focus on the pipeline of talent
• There was no talent management process in place to support the growth strategy
• Some of the operating companies in the group (OPCO) had their own succession plan in place - no Group coordination

Action:

• Project managed the Talent Management project
• Negotiated a common solution in a highly decentralised environment
• Development of a coherent and sustainable process involving group management and the OPCOs for optimum buy in 

The result:

• A simple and robust talent management process and tools implemented and in place
• Succession planning, gap analysis and individual development plans now in place across the Group
• Annual review of people and positions at the Group Management level