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    Merger of UBS and SBC

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    gayatri
    The document discusses the integration strategy of UBS and SBC following their merger. It provides details on the integration timeline, communication approach, and financial targets. The strategy aimed for a quick integration process to eliminate duplication. Integration teams from each business area were formed and expected to finalize plans by May 1st. A common vision statement with clear business and financial goals was communicated to employees. While communication was deemed ineffective by 57% due to inadequate resources, the companies should have focused on building resources rather than calling it ineffective. The integration strategy pursued opportunities for cost savings but also resulted in significant layoffs of around 7,000 employees between 1998-2002 in Switzerland. Risk assessment and due diligence did not receive much emphasis during the integration.

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    Merger of UBS and SBC

    Uploaded by

    gayatri
    107 views3 pages
    The document discusses the integration strategy of UBS and SBC following their merger. It provides details on the integration timeline, communication approach, and financial targets. The strategy aimed for a quick integration process to eliminate duplication. Integration teams from each business area were formed and expected to finalize plans by May 1st. A common vision statement with clear business and financial goals was communicated to employees. While communication was deemed ineffective by 57% due to inadequate resources, the companies should have focused on building resources rather than calling it ineffective. The integration strategy pursued opportunities for cost savings but also resulted in significant layoffs of around 7,000 employees between 1998-2002 in Switzerland. Risk assessment and due diligence did not receive much emphasis during the integration.

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    Change Management during an acquisition

    Original Title

    Merger Of UBS and SBC

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    The document discusses the integration strategy of UBS and SBC following their merger. It provides details on the integration timeline, communication approach, and financial targets. The strategy aimed for a quick integration process to eliminate duplication. Integration teams from each business area were formed and expected to finalize plans by May 1st. A common vision statement with clear business and financial goals was communicated to employees. While communication was deemed ineffective by 57% due to inadequate resources, the companies should have focused on building resources rather than calling it ineffective. The integration strategy pursued opportunities for cost savings but also resulted in significant layoffs of around 7,000 employees between 1998-2002 in Switzerland. Risk assessment and due diligence did not receive much emphasis during the integration.

    Copyright:

    © All Rights Reserved
    Download as DOCX, PDF, TXT or read online from Scribd
    Download as docx, pdf, or txt
    107 views3 pages

    Merger of UBS and SBC

    Uploaded by

    gayatri
    The document discusses the integration strategy of UBS and SBC following their merger. It provides details on the integration timeline, communication approach, and financial targets. The strategy aimed for a quick integration process to eliminate duplication. Integration teams from each business area were formed and expected to finalize plans by May 1st. A common vision statement with clear business and financial goals was communicated to employees. While communication was deemed ineffective by 57% due to inadequate resources, the companies should have focused on building resources rather than calling it ineffective. The integration strategy pursued opportunities for cost savings but also resulted in significant layoffs of around 7,000 employees between 1998-2002 in Switzerland. Risk assessment and due diligence did not receive much emphasis during the integration.

    Copyright:

    © All Rights Reserved
    Download as DOCX, PDF, TXT or read online from Scribd
    Download as docx, pdf, or txt
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    The key takeaways are that the two banks, UBS and SBC, merged and adopted an integration strategy to finish the integration process quickly and eliminate duplication. However, this strategy had some potential downsides.

    The two banks aimed to finish the integration process quickly and have integration teams complete their plans by May 1st in order to have a short integration time period and eliminate duplication between the banks.

    The potential issues with the integration strategy included significant layoffs of around 7,000 employees in Switzerland. There was also not much emphasis on risk assessment and due diligence. This strategy could also cause issues with communication and developing a new unified culture between the banks.

    MERGER OF UBS (UNION BANK

    OF SWITZERLAND) – SBC (SWISS BANK


    CORPORATION): INTEGRATION PLANNING
    Merger & Acquisitions Group Assignment

    Group A12

    Isha Varma – 16F323

    Chandni M – 16F312

    Ashna Kedia – 16F311

    Gandhali Inamdar – 16F317


    Q1. Critique the integration strategy of the two banks. Be sure to use the financial data
    while you critique.
     The basic agenda was to finish up with the integration process quickly, i.e. to have
    integration time as short as possible, and eliminate duplication
     Each business area had integration teams, and each of the team were to finish their plans
    by May, 1, i.e. not prolonging the life of integration teams
     Both the companies had formed a common vision statement, which contained very clear
    business and financial targets and this were communicated throughout the organization via
    a memo. Distribution of integration developments to employees through a joint website,
    helped in building commitment to the new organization. Involving employees also helped
    in solving any disputes at any level
     Communication is crucial to successful integration – only approved by 43%. Therefore,
    main reason that communication was said to be ineffective by 57% was inadequate
    resources, slow process, inconsistency of messages etc. Therefore, the company should
    have focused on building on these resources rather than stating communication to be
    ineffective. Building up these resources would have helped in successful integration.
     Considering integration management team to be separate and distinct, i.e. a special project
    would have helped the organization achieve its goal faster due finite number of goals.
     Although the integration strategy adopted by the companies would result in opportunities
    for synergistic cost savings, but it would also result in significant layoffs. For example, the
    new company had laid off 7,000 people in Switzerland between 1998 and 2002.
     But these layoffs were shown as early retirement rather than terminations, therefore this
    came in positive light for the company
     There was not much emphasis on risk assessment and due diligence
     The company gave the required time needed to develop a new culture, and also allowed for
    release of those employees who cannot culturally adjust.

    Q2. What are the ‘me’ issues in integrating in the UBS-SBC case.
    Given the business environment both the companies were in with tight labour market, premium
    demanded by dissatisfied employees and impending Y2K problem; both the companies were
    under pressure to speed up the integration process.
    A report by A.T. Kearney on merger processes noted that the success or failure of a merger can
    be observed in first 100 days.

     Urgency created by “me” issues


     Meaning- Ground level impact of merger on every aspect of individual employee’s
    job status
     Potential to create fear and panic amongst employees if not addressed timely
     Impacts all aspects of job- employment status, compensation, benefits,
    performance, projects, skills etc.
     Hence, communication, credibility, and continuum in processes is required for
    implementation of merger
     Impact of “me” issues on organization
     Could cause organizational paralysis in work, project timelines, cultural
    disharmony etc.
     Threats to decision makers
     Could lead to loss of critical talent, or demand of premium for staying back
     Retention decisions, layoff management, exit processes all impact the culture of
    organization
     Handling of lay-offs
     The merger transition team was sensitive to social responsibility during tough lay-
    off decisions
     Early retirement options were offered wherever possible over termination. This
    reduced the negativity
     Communication of policies/decisions
     All organizational changes & policies were communicated in a timely manner
     This reduced the uncertainty and dampened the negative impact of “me” issues

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