ORGANIZING
THE POST-MERGER
INTEGRATION
Małgorzata Jaśkiewicz
Magda Smorzewska
Kamila Michel
Tymon Kokoszka
M&A DaimlerChrysler Case Study
Agenda
1. Organizational structure
2. Implementing a  Hybrid
3. Supporting Tools
4. Internal Coordination and Performance
Monitoring
5. PMI
6. Awaiting the  Real test
M&A DaimlerChrysler Case Study
Agenda
1. Organizational structure
2. Implementing a  Hybrid
3. Supporting Tools
4. Internal Coordination and Performance
Monitoring
5. PMI
6. Awaiting the  Real test
M&A DaimlerChrysler Case Study
ORGANIZATIONAL STRUCTURE
post-merger integration approach
decentralized centralized
management coordination
board team
"distributed
leadership"
M&A DaimlerChrysler Case Study
ORGANIZATIONAL STRUCTURE
board
Chairmen s Intergration
Council (CIC):
" 8 members
" keep track of progress
" oversee the PMI phase
" directly involved with the
integration
Chrysler
MB execs
excecs
Source: DaimlerChrysler AG
M&A DaimlerChrysler Case Study
EBD
IRT
ORGANIZATIONAL STRUCTURE
board
Extended Board of Directors
" part of management
" directly involved with the
integration
Chrysler
MB execs
excecs
Source: DaimlerChrysler AG
M&A DaimlerChrysler Case Study
CIC
IRT
ORGANIZATIONAL STRUCTURE
board
Issue Resolution Team (IRT):
" 12 teams supervised by CIC
" each of CIC (except for
chairmen) belong to at least one
team
" 1 Chrysler + 1 Daimler
" 2 coordinators + 10 individuals
= Post-Merger Integration
(PMI) team
" support & help
" oversee projects
Chrysler
MB execs
excecs
Source: DaimlerChrysler AG
M&A DaimlerChrysler Case Study
CIC
EBD
ORGANIZATIONAL STRUCTURE
efforts
" involve board in decentralized fashion
" maintain high individual accoutability
" PMI coordinated efforts between IRTs
" using common areas in company
M&A DaimlerChrysler Case Study
Agenda
1. Organizational structure
2. Implementing a  Hybrid
3. Supporting Tools
4. Internal Coordination and Performance
Monitoring
5. PMI
6. Awaiting the  Real test
M&A DaimlerChrysler Case Study
IMPLEMENTING A "HYBRID"
M&A DaimlerChrysler Case Study
IMPLEMENTING A "HYBRID"
M&A DaimlerChrysler Case Study
IMPLEMENTING A "HYBRID"
M&A DaimlerChrysler Case Study
DISTRIBUTED LEADERSHIP
M&A DaimlerChrysler Case Study
Agenda
1. Organizational structure
2. Implementing a  Hybrid
3. Supporting Tools
4. Internal Coordination and Performance
Monitoring
5. PMI
6. Awaiting the  Real test
M&A DaimlerChrysler Case Study
SUPPORTING TOOLS
" Tree structure of project task forces
" The  War Room
"  Traffic lights standard
M&A DaimlerChrysler Case Study
SUPPORTING TOOLS
Project-tree structure
M&A DaimlerChrysler Case Study
SUPPORTING TOOLS
The  War Room
'The center of the aggregating
and monitoring the progress of the different
Post Merger Integration Team (PMI) projects
'Located in Stuttgart
'Equipped with the most modern IT equipment
'Progress input on a weekly basis
'Easy access to this system
M&A DaimlerChrysler Case Study
SUPPORTING TOOLS
 Traffic lights standard
M&A DaimlerChrysler Case Study
Agenda
1. Organizational structure
2. Implementing a  Hybdid
3. Supporting Tools
4. Internal Coordination and Performance
Monitoring
5. PMI
6. Awaiting the  Real test
M&A DaimlerChrysler Case Study
INTERNAL COORDINATION AND PERFORMANCE MONITORING
M&A DaimlerChrysler Case Study
Agenda
1. Organizational structure
2. Implementing a  Hybrid
3. Supporting Tools
4. Internal Coordination and Performance
Monitoring
5. PMI
6. Awaiting the  Real test
M&A DaimlerChrysler Case Study
PMI
is temporary, what s next?
" PMI  conceived as temporary
" IRT structure  expected to carry on its project tasks
for two to three years
=>Achieving the financial targets of the merger
" PMI integration  expected to be consistent with the
long-term organizational direction
" New, integrated organizational structure - derived as a
result of the project work carried out inside the IRTs
M&A DaimlerChrysler Case Study
PMI
DaimlerChrysler Post-Merger
Sales and Marketing Organization
M&A DaimlerChrysler Case Study
PMI
DaimlerChrysler Personnel Organization
M&A DaimlerChrysler Case Study
Agenda
1. Organizational structure
2. Implementing a  Hybrid
3. Supporting Tools
4. Internal Coordination and Performance
Monitoring
5. PMI
6. Awaiting the  Real test
M&A DaimlerChrysler Case Study
AWAITING THE "REAL TEST"
" New sales and marketing organization
gave an insight into opportunities and
difficulties in integrating both organizations
" By April 1999 some observers were
increasingly highlighting the growing
cultural difficulties involved in integrating
two organizations from diverse countries
M&A DaimlerChrysler Case Study
AWAITING THE "REAL TEST"
" The merger failed to produce the trans-Atlantic
automotive powerhouse dealmakers had hoped for
" DaimlerChrysler announced on May 14, 2007 that it
would sell Chrysler to Cerberus Capital Management
of New York
" On October 4, 2007 a DaimlerChrysler Extraordinary
Shareholders' Meeting approved the renaming of the
company. From October 5, 2007, the company has
been titled Daimler AG. The US company adopted the
name Chrysler LLC.
M&A DaimlerChrysler Case Study
Time 4 questions J�
M&A DaimlerChrysler Case Study
THANK YOU FOR YOUR
ATTENTION
M&A DaimlerChrysler Case Study