HVAC Services Business Merger

Objective

A multi-national Construction and Services publicly listed entity needed to amalgamate four distinct Facilities Management operations into a single business unit. This involved physical relocation of two of the businesses, as well as operational and financial process discovery, documentation and re-engineering.

Our brief was to successfully bring all the operations together into one business unit in a three month time frame.

Solution Delivery

• Three of the four operations were service departments within separate legal entities and were already on the Group ERP. A process had to be developed to extract these business units from their parent and convert them into the new, combined legal entity. The fourth operation had to be implemented into the Group ERP.
• This was the first amalgamation for the new Group Division and there was a need for consistent process. Current state processes were mapped within each of the four service operations. These were then combined into Future State using best practice as a basis, as well as considering the negotiations required to get each business to compromise.
• In order for each business to “convert” into the new structure, data analysis and cleansing had to occur, ensuring every one had systems data with the same starting base point.
• Once the processes had been agreed on, documentation of the processes occurred. These were then used as the basis for end user training.
• Significant change management occurred with both the back-office and operational staff. The cultural shift within each of the businesses had to be handled with care. We assisted with this as needed, as well as advising management.
• Customer and supplier communications were required, at times requiring discussion on changes to credit terms, or methods of handling special needs.
• A “big bang” approach to the cutover had to occur, so all project tasks had to be managed to be realised at the same time.

Achievements

• We had an on time and on budget delivery of the ERP implementation and amalgamation
• Agreement was eventually achieved across the differing businesses, resulting in process consistency
• There were measurable back office efficiencies delivered on day one through improved process and staff consolidation
• Operational efficiencies were realised through merged process needs
• A template established for future state based

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