Realising post-merger synergies whilst keeping the show on the road
MANAGING THE COMPLEXITIES OF INTEGRATION FOLLOWING THE LARGEST MERGER IN UK BANKING HISTORY; BALANCING THE NEED TO REALISE BENEFITS WITH THE NEED TO MINIMISE CUSTOMER DISRUPTION.
Following the merger, the first area to realise synergies was with the Asset Finance operations of the two heritage organisations. Some of the areas within which one of the organisations had operated were now judged to be non-core and required a controlled exit or run-down, in some cases with an extended run-off period of five years or more.
The Challenge
The remaining core businesses needed to be combined and optimised but with minimum disruption to customer service. All of this change would have a significant impact on employee numbers and locations.
Our Solution
Working closely with senior management, we:
Conducted a strategic review of options/integration approach for the asset finance businesses of the two heritage companies.
Identified growth, closure and other routes for each business in the portfolio.
Developed implementation plans for migration of core business and closure and run-off of non-core businesses.
Programme-managed the path-finding integration programme.
Supported engagement and implementation activities with organisational, HR, commercial, customer and industry stakeholders
The Outcomes
The safe run-down or transfer of asset finance books of around £20bn with minimum disruption for customers and intermediaries, with synergy savings of almost £15m. 1500 employees were directly impacted, with re-deployment secured for 250. The programme was used as a model for subsequent integration initiatives within the Group.
“With such a unique and complex integration we absolutely made the right decision in engaging Challenge Consulting. Their sector knowledge and understanding of the scale of what was needed from the beginning were crucial factors in helping to shape the project and, ultimately, its success.”
