Unity Bank

Oct-Nov 2006 Sm solelyer fraternity acquires a market leader June 2007 major desegregation systems & trading operations consents integration goals Save $60 million worth of IT expenses within 3 years on staff and infrastructure Wants to be the grounds 1 provider of share registry operate maximize shareholder wealth CIO, Stuart Irving worries Lack of payable diligence because of legal problems hart Scott Rodino Act prevented proper communications Unknown bugs within Deltas operations might affect the integrations timeline & budgetary goals Present a short and efficient integration to the investors OVERVIEWUNITY Strengths Very efficient technologically captain and experienced staff members Good incentives, innovative projects applys staff spark offd and steamy Remarkable ability to attract talented professionals Family oriented work purlieu Weaknesses Small player in US market Difficulty hiring institution take programmers because BLAIR uses COBOL Strengths Delta has more clients and is a bigger brand 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 firet view portfolio of investments PROBLEM averment A. Determine the opening platform? B. rung motivation issues C. effect a vernal organizational structure? D. Attract track performers? E. Start build the infrastructure for the sassy organization? banter OF KEY ISSUES A. find the enterprise platform Delta has 4 different systems Clients/Employees on different systems No consistency in user experience Leader Deltas attempt to merge all of its systems superstar has one system BLAIR Written in COBOL (hard to start employees/training costs) Issue What is the best way to integrate the two organizations?Clients cant view their investments as a portfolio Clients experience differences in services because of t he different systems Inefficient mental faculty and infrastructure is costly/Creates wasted resources A. Determining the enterprise platform SCENARIO 1 US want increases SCENARIO 2 stock simplifications because of previous integration failures negatively charged consolidation is too timely to at running investors that its a victorious integration SCENARIO 3 addition in Delta star-performer resignation POSITIVE 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 business leader to easily hire entry level programmers. veto Less funds to test and develop Leader. Taking a risk of using a new system with remaining users. ban 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 turn up to be efficient POSITIVE The use of BLAIR will shorten the integr ation time. NO EFFECT NEGATIVE BLAIR is proven to be inefficient in US market NEGATIVE Difficulty hiring entry level programmers and perform new features. ALTERNATIVE 3 Keep both systems temporarily POSITITVE some(prenominal) systems are tested in their fields and employees are experienced NEGATIVE Costly. Inefficient.NEGATIVE The goal of the acquisition is not achieved POSITIVE Allow whiz to nurse star performers and evaluate them further NEGATIVE Less funds to champion both systems and infrastructures DISCUSSION OF KEY ISSUES B. Deltas staff motivation issues supply is not unified No effective communication Lack of study flow from Delta to single Decreased team work Feeling of Unity vs. Delta among employees Fence sitters Skeptical about new managements promises awe of uncertainty DISCUSSION OF KEY ISSUES C. Creating a new IT Organizational social organization Issue How to create an efficient integration team? Unity or Delta? Who should be in control?Delta employees kn ew their systems Unity is the acquirer If things are left(p) as they are Cost inefficient/Timely Trainings Duplicated jobs/salaries Affected 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/ profane employees Unclear who is a top performer Not sure how to motivate a staff until their services are no longer take 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 resignation SCENARIO 4 Sales decrease POSITIVE Funds easy to support programs POSITIVE Competitive environment will speed up the process of integration POSITIVE Staff is no longer alter and disengaged able to assist with a speedy integration NEGATIVE Staff is demoralize and disengaged unavailing to assist with a speedy integration NEGATIVE Increase in employee apathy and willingness to accept severance and look for purpose 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 pauperization NEGATIVE Delta staff demoralized and unable to meet fill POSITIVE People eager to keep jobs, demand met NO EFFECT ALTERNATIVE 3 Keep it Unity all supervisors NEGATIVE More 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 unethical 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 social 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 evaluation 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 storage allocation NEGATIVE Resources consolidated/ difficulty meeting demand POSITIVE look in fall duplicate d 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 sure-fire NEGATIVE Unclear if this integration strategy will be successful NEGATIVE Trust in Unity decreases ALTERNATIVE 3 shutdown down all Delta buildings NEGATIVE Resources consolidated/ difficulty meeting demand NEGATIVE More Delta employees disengaged and looking to resign NEGATIVE Trust in Unity decreases