How to successfully integrate different PricewaterhouseCoopers consulting?
How to rely on integration to effectively promote transformation? How to improve yourself rather than consume yourself in the transformation?
Know IBM, maybe we can.
IBM 100 year, which is respectable; But IBM 10 year is even more impressive.
Because in 10, this former IT equipment manufacturer achieved the most successful strategic transformation in the world so far. 20 1 1 year, IBM announced that 23% of its revenue comes from software, 2 1% from hardware and 56% from services-this is a real transformation.
IBM not only achieved transformation, but also led the mainstream values of global enterprises with this great success-"We also want to sell services", and triggered a follow-up frenzy of many enterprises around the world-"We also want to transform".
But behind the success of the classics since ancient times, there are a lot of stings, groans and even bones. Realizing the transformation to service is far from being as simple as our generous oath in the speech. In recent years, countless people have followed the transformation, but only a handful of enterprises can successfully realize the transformation from manufacturing to service like IBM.
In this issue, we will present to you: Why can IBM achieve a successful transformation? In the process of transformation, what has it done right that other transformation enterprises are easy to ignore or fail to do?
Among them, we are particularly concerned that the 10 year of IBM's substantial transformation is precisely the 10 year of its integration of PricewaterhouseCoopers consulting business. The integration of Puhua is not the starting point or the end point of the transformation, but it is a powerful propeller that is crucial to the success of the transformation.
For a mature enterprise in urgent need of transformation, it is bound to be very difficult if it only relies on its own internal drive-even if there is systematic leadership construction. It may seem thrilling to combine assets with transformation target types, especially to achieve effective integration, but it is great wisdom (60 15 19, stock bar) to help enterprises truly realize transformation.
But the integration risk is great; Like the transformation itself, it is very risky.
If HP's acquisition of Compaq, which was exclusively reported by China Foreign Management nine years ago, can be called "the mystery of century integration", then IBM's integration of PricewaterhouseCoopers is an authentic "classic of century integration". More classic, more difficult to come from. Compared with HP and Compaq, the situation of the same industry is different, and the demand for transformation is not so obvious, but the implementation of integration is still tangled. And IBM and Puhua, the two industry bosses face each other, with different industries, different models and different values, but the same success, the same arrogance and the same strength, who will provoke who? Who serves whom? How can they achieve win-win integration instead of lose-lose internal friction? How can we promote transformation through integration instead of being in a daze?
But IBM did. It took this company 10 years to tell the world that IBM really did it! So, what happened to IBM in this seemingly impossible integration? Suffer from what? What have you prepared? What did you do right? What have you achieved? What enlightenment will IBM's 10 year give to many China enterprises in transition or China enterprises that will realize transformation through mergers and acquisitions?
In this issue, through a multi-dimensional in-depth interview with IBM Greater China, I tell my friends a tortuous and wonderful practical story, and at the same time provide them with a practical method of being suddenly enlightened-that's what IBM did! And we ... maybe we can.
(yang? Lighting)
Merger of PricewaterhouseCoopers Consulting
Elephants dance with fierce horses.
Text/reporter? Chunyan Sun
Big Blue has accomplished the perfect transformation of service so well. Buying the consulting business of PricewaterhouseCoopers 10 years ago is obviously a decisive strategic move.
As we all know, the difficulty of M&A lies in the late integration, and there are too many tragedies of integration. So, how does IBM achieve perfect integration with PricewaterhouseCoopers? What inspiration can you give us? /kloc-for the first time in 0/0 years, we have the opportunity to present the unknown story behind the great integration of this century exclusively for readers.
"Have you ever done consulting? You got it? Without consultation, there is no right to speak and evaluate at all! "
Under the collective gaze of more than 30 people, Qi Yue was severely defeated by an army. The speaker left, leaving a room full of people hanging there.
"Of course I did it first." After a lapse of nine years, Qi Yue, then the financial director of IBM Business Consulting Services (BCS), said leisurely. As an old IBM leader, it is the first time to be so "provocative" in public. The instigator is his new partner, the senior leader of PricewaterhouseCoopers Consulting.
It was 2003, Qi Yue's eighth year at IBM. Just the year before last, IBM completed a century merger case that caused a sensation in the industry-the consulting department of consulting giant PricewaterhouseCoopers was pocketed for $3.5 billion, involving as many as 30,000 employees and as many as 160 countries. In China, on June 5438+1 October 20031,on the first day of the New Year, PricewaterhouseCoopers, located in Beijing Kerry Center, officially took off the brand of PricewaterhouseCoopers consultant and replaced it with IBM's logo.
At that time, many people were worried about this "cross-cultural marriage". No one has absolute confidence in 100%.
"heavyweight" challenge
Because the internal integration of the two companies is far from being as simple as changing the company logo.
In particular, this is not a lightweight "acquisition" of small annexation. You know, at that time, IBM had stood as an IT giant for many years. As a listed company, it is steady and rational. As the leader of the consulting industry, PricewaterhouseCoopers follows the tradition of the consulting industry and insists on not going public. It is obviously more flexible and resourceful in the system, just like a fierce horse. One is good at selling products, and the other is proud of selling services. Once such a team with different styles and leading industries is merged, it is conceivable what kind of fierce chemical reaction will occur in the integration.
You know, even if the merger of the same industry, such as the acquisition of Compaq by 200 1 HP, was almost carried out at the same time as IBM, the cultural differences between the two companies were still great, and the integration was not smooth. What's more, unlike product integration, service itself is a personal matter, and integration is more difficult. If the personnel and organizational structure are not integrated, it is not really integrated.
For a time, the undercurrent surged.
"A completely different world made me lose my sense of direction." Recalling that year, Xu Yonghua, the current vice president of IBM and senior partner of global business consulting department, told China Foreign Investment Management. The consulting company outside the brain is in full swing, but suddenly it is told that it has been sold to an equipment manufacturer! The first reaction of many old Puhua is surprise and loss. This emotion is so strong that it lingers in the early days of M&A. ..
Within IBM, unlike the fierce disagreement when HP decided to buy Compaq, although most people tend to agree with this grand strategy, they are somewhat worried about the prospects. Violent conflicts caused by completely different cultures and working methods have created many "firsts".
Like Qi Yue. The reason why I was questioned at the meeting that day was only because the statement of the statement of work in the contract was different. According to the customary practice of consulting industry, Puhua often lists "things we don't do" for customers, and Qi Yue thinks that it is obvious that more explanation of "what we do and how to do it" is what customers want most.
At the same time, conflicts caused by system differences are more intense. As a century-old technology enterprise and listed company, IBM relies more on process control, which is in sharp contrast with the partnership mechanism of PricewaterhouseCoopers. Even Hewlett-Packard, which has coveted PricewaterhouseCoopers for a long time, gave up the idea of acquisition because it was desperate after evaluating this point.
This is not because HP is timid. In Puhua, people are used to passion, and they call on employees to be ready to fly to any corner of the world at any time to achieve the services that customers need. Moreover, a strong partner can lead a small team with great decision-making power. "The customer says it's too expensive, and the partner can directly give a 10% discount." But at IBM, this is simply unimaginable. Its process was once evaluated by ordinary people in China as "strict to almost rigid". To do anything, you need to communicate and coordinate with countless people and constantly submit for approval.
It is said that once a former director of the consulting department of PricewaterhouseCoopers, who was on vacation, received an urgent call from a Shanghai customer and habitually prepared to leave immediately. However, when he immediately informed the team to take a taxi to the company to declare the expenses, he could not get the funds because of the inconsistent process. Although they finally caught the last flight of the day through direct negotiations with CFO, the whole team has been sulking on the plane: why are IBM's regulations so complicated? So slow?
Difficulties come not only from inside, but also from outside. Especially when examining and approving the merger, for the customers who were competing at that time, should they continue to compete or should one party quit first? How to ensure that the customer's ongoing projects are not affected? After the merger is announced, how can we appear in front of customers with a complete image without causing any confusion to the latter?
"1+ 1" in labor pains
For these entanglements and doubts, IBM has actually made corresponding preparations.
200 1, Zhao Lifang, head of Taiwan Province Business Innovation Service Department of IBM (predecessor of IBM Global Enterprise Consulting Service Department), is very busy. But in July, her boss suddenly informed her to come to the mainland to help, saying, "There is a very important project." Therefore, Zhao Lifang was able to devote itself to the "tough battle" of this integration six months before the announcement of the century merger.
Like many big mergers, IBM has set up a special temporary organization, which is divided into several departments, including IT department and customer department, to deal with possible problems in different aspects. Different from the overseas cooperation of many Chinese enterprises at present, from the first day, they did not intend to let PricewaterhouseCoopers Consulting operate independently, but chose a real merger. In other words, the people, organizations and services provided by both parties are integrated.
But this is obviously not an easy job.
At that time, the head of IBM global business consulting service department was Luo Ruilan, the current global CEO of IBM. She immediately appointed the former head of PricewaterhouseCoopers to remain the leader, and so on. IBM appointed managers in every region and place very quickly and never left a file. "We must form a team as soon as possible and carry out a series of controls on continuity." Yu, the Asia-Pacific mastermind of M&A case integration in those years, is now the vice president of IBM and the general manager of GBS in Greater China, and has been recalled to China for external management.
For this combination, IBM did not hesitate to show the fullest sincerity. Under the planning of others, when IBM and the senior leaders of PricewaterhouseCoopers met for the first time in 2002, all IBM leaders headed by Zhou, then CEO of IBM Greater China, arrived in advance and warmly welcomed every new colleague from PricewaterhouseCoopers at the other end of the red carpet, which made the latter extremely moved.
Within IBM, the word "acquisition" is also deliberately avoided, but it is carefully called "merger". At the same time, IBM keeps sending the message that the purpose of merging PricewaterhouseCoopers is not to turn a leading consulting firm into another leading consulting firm, but to hope that you can promote the transformation of IBM. Xu Yonghua, who has been holding the idea of giving it a try since he entered IBM, was deeply moved by this sentence.
Of course, if these are still soft psychological warfare, then hard actions are reflected in organizational structure, staffing, and subsequent institutional integration.
Around the world, the leaders of the two sides have been mixed according to their abilities. But there can only be one leader, either from former PricewaterhouseCoopers or former IBM. In order to integrate with the style of PricewaterhouseCoopers, IBM has even simplified many procedures that are very cumbersome for ordinary people in China. As a listed company, IBM even changed the leadership title of consulting department to a common "partner" in private companies-IBM is sincerely moving closer to PwC.
To be precise, "both sides have taken a step towards each other, so the impact is not as great as expected." Today, Wang Shouhu, vice president of IBM and senior partner of global enterprise consulting service department, said.
However, it is just "not that big". In fact, the pain of integration is inevitable.
In the first two years of the merger, this new team experienced a lot of brain drain. This includes both old Puhua and old IBM. This also directly led to the poor market performance and performance of the consulting service department (GBS) of IBM in 2003 and 2004.
The direct reason comes from the strong contrast between the talent promotion systems of both sides. PricewaterhouseCoopers, which pursues the partnership system, is so flexible in judging talents that it almost ignores qualifications. Many young elites can be partners and be the boss in their own team. However, under the system of listed companies, IBM, the "elephant", has to go through a long process of honing talents, and there are few opportunities for promotion. As a result, after the merger of the two parties, many old IBM found that the new colleagues from Puhua who have the same qualifications as themselves can actually be much higher than their positions; The elite of Puhua generally can't adapt to IBM's ladder promotion mechanism.
In this regard, IBM has taken various measures to eliminate the personnel turmoil in the merger. According to media reports at that time, IBM promised that at least until the first half of 2004, the salary of Puhua consultants would remain basically unchanged, and the company's total cash would remain unchanged. In addition, IBM has arranged numerous trainings to familiarize Puhua consultants with IBM's corporate culture, decision-making process and administrative structure as soon as possible.
Not only that, IBM also strives to win more promotion opportunities for the former Puhua Consulting staff. But looking back now, it may not be enough. Even today, when it comes to regrets, Zhao Lifang still said, "The only regret is the promotion of talents. If you can do it again, you should do it better. We should let the headquarters know earlier that this should be a completely different talent promotion system. "
Of course, things will not get worse all the time. They are also actively recruiting fresh blood, and after the painful period in 2005, some people have left their jobs. Subsequently, the whole staff of the consulting service department was basically composed of 1/3 old IBM employees, 1/3 old Puhua employees and 1/3 new employees.