Unity Bank

Oct-Nov 2006 Smaller company acquires a commercialize leader June 2007 major consolidation systems & operations uniformitys consolidation goals Save $60 cardinal worth of IT expenses within 3 years on supply and infra structure Wants to be the worlds 1 provider of share registry services Maximize shareholder wealth CIO, Stuart Irving worries Lack of call fit diligence beca expenditure of legal problems Hart Scott Rodino Act prevented proper communications Unknown bugs within Deltas operations might affect the desegregations timeline & budgetary goals Present a short and efficient integration to the investors OVERVIEWUNITY Strengths Very efficient technologically Professional and visitd staff members Good incentives, innovative projects trammels staff prompt and stimulated Remarkable ability to attract talented professionals Family oriented work environment Weaknesses Small fraud in US market Difficulty hiring entry take aim programmers because BLAIR uses COBO L Strengths Delta has more clients and is a bigger tick off in the US LEADER uses object-oriented programming language DELTA Weaknesses Technological challenges Limited capabilities Duplication of resources due to systems limitations Failed integrations in the past Clients cant view portfolio of investments PROBLEM STATEMENT A. Determine the initiative platform? B. staff motivation issues C. Create a clean organizational structure? D. Attract principal performers? E. Start mental synthesis the infrastructure for the bracing organization? backchat OF KEY ISSUES A. Determining the enterprise platform Delta has 4 unalike systems Clients/Employees on different systems No consistency in user experience Leader Deltas campaign to consolidate all of its systems Unity has one system BLAIR Written in COBOL (hard to find employees/training costs) cut off What is the best way to integrate the two organizations?Clients cant view their investments as a portfolio Clients exper ience differences in services because of the different systems Inefficient Staff and infrastructure is costly/Creates wasted resources A. Determining the enterprise platform SCENARIO 1 US Demand increases SCENARIO 2 Stock decreases because of foregoing integration failures NEGATIVE integrating is too timely to show investors that its a successful integration SCENARIO 3 subjoin in Delta star-performer revokeation affirmatory Easier to hire entry level programmers, develop new features and customize system SCENARIO 4 US Demand Decreases ALTERNATIVE 1 Upgrade Leader to BLAIRs capabilities $45 million POSITIVE Ability to easily hire entry level programmers.NEGATIVE Less funds to test and develop Leader. pickings a risk of using a new system with remaining users. NEGATIVE Leader hasnt been tested in the field ALTERNATIVE 2 Use BLAIR to provide services under Deltas brand POSITIVE BLAIR has been tested in the field and proved to be efficient POSITIVE The use of BLAIR go out shorten the integration time. NO EFFECT NEGATIVE BLAIR is proven to be inefficient in US market NEGATIVE Difficulty hiring entry level programmers and developing new features. ALTERNATIVE 3 documentation both systems temporarily POSITITVE Both systems are tested in their fields and employees are experient NEGATIVE Costly. Inefficient.NEGATIVE The goal of the acquisition is not achieved POSITIVE Allow Unity to retain star performers and measure out them further NEGATIVE Less funds to maintain both systems and infrastructures DISCUSSION OF KEY ISSUES B. Deltas staff motivation issues Staff is not unified No effective communication Lack of information period from Delta to Unity Decreased team work Feeling of Unity vs. Delta among employees Fence sitters Skeptical about new managements promises Fear of uncertainty DISCUSSION OF KEY ISSUES C. Creating a new IT Organizational social structure Issue How to create an efficient integration team? Unity or Delta? Who should be in fake?Delta emp loyees knew their systems Unity is the acquirer If things are left as they are Cost inefficient/Timely Trainings Duplicated jobs/salaries change by disengaged staff Cant be sure who is a star performer DISCUSSION OF KEY ISSUES D. Attracting star performers Limitations of due diligence Unity is only familiar with upper management of Deltas staff Disengaged/demoralized employees indecipherable who is a top performer Not sure how to motivate a staff until their services are no longer needed B. Staff motivation C. Organizational structure D. Attracting star performers ALTERNATIVE 1 Create team-oriented incentive programs/ competitive environment ALTERNATIVE 2 integration task force 50/50 staff SCENARIO 1 Demand increases SCENARIO 2 Stock decreases because of previous integration failuresSCENARIO 3 Increase in Delta star-performer quitation SCENARIO 4 Sales decrease POSITIVE cash available to support programs POSITIVE Competitive environment will speed up the process of integration P OSITIVE Staff is no longer demoralized and disengaged able to assist with a speedy integration NEGATIVE Staff is demoralized and disengaged unable to assist with a speedy integration NEGATIVE Increase in employee apathy and willingness to accept severance and look for employment elsewhere. POSITIVE Allows to identify remaining star performers and retaining them NEGATIVE Difficult to create and maintain a strong integration task forceNEGATIVE Decrease in funds to support programs. POSITIVE Staff is no longer demoralized and disengaged able to meet subscribe to NEGATIVE Delta staff demoralized and unable to meet demand POSITIVE People eager to keep jobs, demand met NO EFFECT ALTERNATIVE 3 Keep it Unity all supervisors NEGATIVE much Delta employees disengaged and looking to resign NEGATIVE More Delta employees disengaged and looking to resign NEGATIVE Trust in Unity decreases ALTERNATIVE 4 Issue contract expirations depending on deadlines NEGATIVE People eager to keep jobs wrong conduct increases no longer family oriented environment DISCUSSION OF KEY ISSUES E.Starting to build the infrastructure for the new organization Unity and Delta ran completely different phone systems, networking hardware, office servers, and PC systems Hardware changes were imperative in order for the organization to operate as a single unit How to decrease duplication of expenses on resources? Buildings/Hardware/Maintenance expenses must decrease Organization has to operate as a single unit Reductions = Savings Building the infrastructure for the new organization ALTERNATIVE 1 Create an expense rating team Delta and Unity 50/50 SCENARIO 1 Demand increases SCENARIO 2 Stock decreases because of previous integration failures SCENARIO 3 Increase in Delta star-performer resignation SCENARIO 4 Sales decrease POSITIVE Staff is able to evaluate and determine the best use of resource allocation NEGATIVE Resources consolidated/ difficulty shock demand POSITIVE Assist in decreasing dupli cated expenses thus amplifying earningsPOSITIVE Ability to hire entry level replacements will decrease companys wage expense NEGATIVE More Delta employees disengaged and looking to resign POSITIVE Assist in decreasing duplicated expenses thus amplifying earnings ALTERNATIVE 2 Geographic integrations Keep Unity supervisors POSITIVE Getting rid of redundant assets could increase earnings temporarily NEGATIVE Unclear if this integration strategy will be successful NEGATIVE Unclear if this integration strategy will be successful NEGATIVE Trust in Unity decreases ALTERNATIVE 3 Close imbibe all Delta buildings NEGATIVE Resources consolidated/ difficulty meeting demand NEGATIVE More Delta employees disengaged and looking to resign NEGATIVE Trust in Unity decreases