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- W320734086 abstract "Two assumptions underlie the unprecedented level of mergers and acquisitions in the global economy. The first is that shareholder value will increase significantly because the performance of the merged organizations will be at a higher level than the combined performance of the legacy firms (1,2). The second is that managers' generalized skill sets are sufficient to successfully integrate two previously distinct organizations. Both assumptions are wrong. Various studies show that approximately 70 percent of mergers and acquisitions fail to meet their expected financial performance (3-5). Rather than drawing on existing skills, a or requires managers at all levels to become adept at solving new problems such as rationalizing employees (while retaining key individuals and essential core competencies), integrating product/project portfolios, and communicating the impacts of the or to a wide variety of stakeholders. These challenges must be addressed when timeframes are short and information is sparse. Technical managers must face them when dealing with post-acquisition pressures to exploit expected technical synergies while simultaneously reducing combined budgets. The purpose of this article is to provide technology executives with recommendations on planning and implementing the integration of technical organizations as part of the M&A process (see What Research Directors Worry About Most During a Merger, this page). In order to understand how firms successfully integrate technical organizations, we held a series of roundtable discussions involving 11 senior research directors of Industrial Research Institute member companies and five members of the IRI's Research-On-Research Committee (6). We also carried out 25 independent interviews and a series of workshops, in which over 100 IRI representatives from many companies shared their experiences. Finally, with two of the authors faculty members in the California Institute of Technology's Executive Program on Acquisition Integration, this article is informed by the experiences of hundreds of executives that have participated in that program. Interviewees and workshop participants represented a cross-section of industry sectors including consumer products, insurance, life sciences, oil & gas, chemicals, pulp & paper, control systems, and electronics. They were selected because their organizations were undergoing, or had recently completed, the integration of R&D organizations following a or In this article, we use the term acquisition to refer to either a merger or an acquisition. In our interviews and workshops, the great majority of situations involved bringing previously separate R&D organizations under the overall control of an acquiring company. Certain aspects of R&D integration, by their nature, are the responsibility of R&D executives in an acquiring company. An example is the process of technology due diligence. Other aspects, such as the integration of projects and technology platforms, and the retention and separation of R&D staff, are best done by the R&D management of the post-acquisition company. Include R&D Management Early Our single most important finding is that value is created when research management participates early and actively in the planning process and such involvement continues through the due diligence stage and the integration of the combined organizations. Clearly, early inclusion enables technical leaders to participate with other executives in advising CEOs and boards of directors on the strategic intent of a potential and appropriate valuations. More specifically, early inclusion continuing through due diligence enables careful development of synergy targets for me R&D function, accurate assessment of technical competency overlaps and gaps, and the value of intellectual property portfolios. …" @default.
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- W320734086 date "2002-05-01" @default.
- W320734086 modified "2023-09-26" @default.
- W320734086 title "After the Acquisition: Managing Paranoid People in Schizophrenic Organizations; Successful Integration of the R&D Function Requires Management to Focus on Six Factors" @default.
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