By Amy Hukin, PA organizational change expert
Companies are spending more than $2 trillion on acquisitions every year but studies regularly put the failure rate of mergers and acquisitions somewhere between 70% and 90%. Integrating two companies under one corporate mission is significant in itself, but different organizational cultures and large groups of people with their own ambitions, personalities and ways of working, make the task an even more complex undertaking. It is no surprise therefore that many fail to recover their full deal costs.
The procurement function can bring significant value and savings to a merger. A well-planned merger of two organizations that draws on analytical expertise and data, is anchored in a clear strategy; has invested in resources and change management expertise and involves its people along the journey will provide significant savings and yield enhanced capabilities and future opportunities. Our expertise in procurement integration includes:
- reviewing procurement strategy and developing the case for change
- developing and delivering benefits-focused programs to take out excess cost – process benchmarking, medical cost analysis, and provider network optimization
- designing and implementing integrated procurement organizations
- integrating IT systems and developing insight from data (category spend analysis)
- improving process efficiency, optimizing resource use and managing risk during transition
- project management, including running the PMO
- organizational change management, including stakeholder engagement to sustain the savings long term.
With PA’s specialist capability in procurement, deep expertise in healthcare, and world-class business design and integration know-how. With this fusion of skills, insight and experience, we can deliver the full promise of procurement integration for your business.
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