Frans Cornelis on the randstad-holding Rebranding Case

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Frans Cornelis on the randstad-holding Rebranding Case

  1. 1. Snapshots of a Big Match version 5 - Vlerick Frans Cornelis
  2. 2. the challenge: rapid organic growth + major merger + major recession = ???
  3. 3. handling recent rapid growth AND a merger 2006 Revenue € 8,186 mln. (YTD) 2002 revenue € 5,444 mln. (YTD) 16% 23% 3% 40% 35% 3% 1% 3% 2% 3% 6% 5% 6% 7% 10% 10% 11% 16% Netherlands Germany Belgium/Lux. France Spain UK Italy other* North America 2002 2,154 528 549 343 288 170 86 73 1,255 (€ mln.) 2006 2,912 1,307 924 532 498 249 253 240 1,271 (€ mln.) * including other Europe and Asia 2
  4. 4. combining Vedior and Randstad 3
  5. 5. outlets* by country 2004 - 2006 end of period 2006 2005 2004 the Netherlands 827 819 822 Germany 438 288 258 Belgium/Luxembourg 245 227 204 France 166 170 163 Spain 172 165 147 United Kingdom 126 116 106 Italy 150 132 109 other countries 95 64 56 North America 430 424 455 Asia 21 6 0 total 2,670 2,411 2,320 * branches and in-house locations 4
  6. 6. outlets* of combined company 2007 - 2008 * branches and in-house locations 5
  7. 7. corporate, staffing employees by country averages (YTD) 2006 2005 2004 the Netherlands 5,790 5,180 4,930 Germany 2,280 1,570 1,380 Belgium/Luxembourg 1,400 1,230 1,100 France 710 670 620 Spain 1,110 1,060 950 United Kingdom 590 450 440 Italy 480 440 380 other countries 590 450 270 North America 2,170 2,370 2,190 Asia 260 10 0 total 15,380 13,430 12,260 staffing employees 312,300 254,400 224,600 6
  8. 8. combined company 2007 - 2008 total own employees Q2 2008: 34,000 (total own employees Q1 2010: 25,500) 7
  9. 9. Randstad major brands 8
  10. 10. just some (!) of Vedior‘s brands 9
  11. 11. Volkskrant Gekke koppeling van uitzenders ACHTERGROND, Van onze verslaggever Xander van Uffelen Amsterdam - Het uitzendbedrijf Vedior heeft een brochure van maar liefst 36 pagina’s nodig om al zijn merken op te sommen. Van het uitzendbureau Promatica in Angola, via Expectra in Frankrijk naar Dactylo in Nederland. Randstad daarentegen hanteert slechts een handvol belangrijke uitzendmerken en heeft zijn bekende blauwe logo in bijna alle landen geïntroduceerd. De versnippering van de merken van Vedior tegenover de eenvormigheid van Randstad is slechts een van de vele grote verschillen tussen beide bedrijven. Voor bedrijven die ervaring hebben met het aan elkaar koppelen van twee geschikte kandidaten, is de aangekondigde samenvoeging van Vedior en Randstad op zijn minst opmerkelijk te noemen. Randstad is ijzersterk in thuisland Nederland, maar heeft verder zijn activiteiten goed gespreid over vele landen. Vedior leunt zwaar op Frankrijk, waar 40 procent van de omzet vandaan komt, en kan zich in andere landen nergens marktleider noemen. Randstad richt zich primair op de algemene markt van uitzendkrachten, waar Vedior allerlei gespecialiseerde uitzendkantoren voor werving en selectie heeft verzameld. ‘Je mag aannemen dat bij een geslaagde overname de koers van Randstad de boventoon gaat voeren’, zegt analist Johan van den Hooven van zakenbank Theodoor Gilissen. ‘Het nieuwe bedrijf zal een duidelijke lijn aanbrengen in de bedrijfsvoering van Vedior en de winstmarge verbeteren.’ Ook zal bij Vedior de bezem door het aantal merken gaan, iets wat de nieuwe baas Tex Gunning waarschijnlijk toch al van plan was. Bij zijn vorige werkgever Unilever heeft hij ervaring opgedaan met het saneren van merken. De geschiedenis van Randstad oogt ook meer als een rechte lijn. Oprichter en grootaandeelhouder Frits Goldschmeding zwoer bij een autonome groei. Vedior daarentegen is een afsplitsing van het conglomeraat Vendex en heeft sinds zijn zelfstandige bestaan in 1997 uiteenlopende bedrijven opgekocht. Naast de grote bedrijfs- en cultuurverschillen zullen er nog meer obstakels overwonnen moeten worden om Vedior en Randstad tot een geheel te smeden. Zo zijn er de mogelijke bezwaren van de mededingingsautoriteiten. Randstad is met een marktaandeel in Nederland van 37 procent al veel te sterk. De inlijving van de Nederlandse kantoren van Vedior (7 procent marktaandeel) zal daardoor op problemen stuiten. In andere landen spelen deze bezwaren minder. Het tweede probleem is de vraag hoe Randstad de overname kan betalen. Voor Vedior zal het bedrijf naar schatting 4 miljard euro moeten neertellen. Met leningen en kasgeld kan het bedrijf zo’n 2 miljard euro opbrengen. Er zal dus voor 2 miljard euro aan nieuwe aandelen uitgegeven moeten worden, wat door de kredietcrisis een dure zaak is. Die crisis, waardoor aandelen van uitzendbedrijven flink in waarde zijn gedaald, is ook een meevaller, zegt analist Van den Hooven. ‘Vedior is nu wel een stuk goedkoper.’ 10
  12. 12. Principles: how to tackle all this
  13. 13. what gets measured, gets done: basic measurement systems clear message stressing the satisfaction plus sufficient right image with the result (ad) spending components (experience!) 20 to 25% 20 to 25% 50 to 60% Net promotor TNS Interbrand KPN Telecom, Siemens, Microsoft, HP en IBM are the strongest brands Decision makers TNS TNS scores okt-00 sep-01 okt-01 Vaste Tele com 100 KPN Telecom n =966 n=857 n=972 Mobiele Telecom Hewlett-P ackard Microsoft Top of mind Spontane Geholpen Top of mind Spontane Geholpen Top of mind Spontane Geholpen Siemens Computermarkt IBM 2000 Merk bekendheid bekendheid bekendheid bekendheid bekendheid bekendheid bekendheid bekendheid bekendheid Hi UPC KPN 50% 72% * 46% 71% * 53% 76% * Libertel (potential) Brand Vitality KPN Telecom 4% 14% 98% 4% 10% 96% 3% Dell 19% 96% KPN Mobile 0% 5% 76% 0% 3% 86% 0% 12% Apple 84% Nokia 50 Compaq PTT Telecom 12% 22% * 7% 10% * 8% 19% * Ericsson Intel Toshiba FlexiBel Tele2 Dutchtone Hi 0% 5% 77% 0% 3% 79% 1% Versatel 10% 75% Ben Tulip customers - 58% Hi <34 jr 0% 6% 91% MCI Worldcom Novell 0% NEC 11% 92% Digital Fujitsu Olivetti Libertel 10% 60% 96% 8% 49% 97% 7% Iomega 50% 96% Telfort ©Copyright 2001 Consult AT&T One.tel Telfort 3% 33% 93% 3% 26% 94% 3% Lucent Technologies 30% Lotus 91% Dutchtone 2% 33% 86% 2% 28% 88% 2% 33% BT/British Telecom 86% 0 0 BAV Ben 4% 54% 90% 7% 44% 91% 4% 51% 90% 50 100 Vodafone 0% 2% 51% 0% 3% Brand Sta ture 47% Orange 0% 0% 26% 0% 1% 27% Q 0% 0% 8% 0% 1% 8% One.Tel 5% 17% 66% 3% 10% 67% 3% 16% 66% Tele2 8% 23% 75% 15% 29% 85% 12% 33% 81% Versatel 0% 3% 37% 0% 1% 43% 0% 5% 46% Priority Telecom 0% 0% 17% 0% 0% 12% 0% 1% 14% Scarlet 0% 1% 12% 0% 0% 12% 0% 1% 9% Primus 1633 0% 2% 13% 0% 1% 7% 0% 1% 7% (potential) RQ RQ MM Culture RepTrak RepTrak employees - 10% Survey (potential) E.com RQ investment - 14% “Rematch”-type rankings etc RepTrak Share price Factiva/RQ RQ social/political Press monitor, Actual image - 12% share of voice RepTrak regulations, CLAs RepTrak 12
  14. 14. Culture — Six hard-earned core beliefs on cultural integration during the merger Start with a fact base Deliver coherent program and 1 4 Secure insights on existing make it a personal cultures of Randstad-Vedior; True behaviour change requires don‘t exaggerate culture well-designed, coherent set of differences to create a systemic interventions, and ―scapegoat‖ for individual resolve to make a underperformance difference Ensure value creation focus Integrate seamlessly with 2 5 Don‘t just blend two cultures to operational PMO initiatives a ―nice‖ mix, but use merger to Don‘t execute cultural program as boost daily performance, capture separate ‗HR, Friday afternoon‖ identified synergies and increase effort, but integrate it with the long term health ―hard‖ post-merger Randstad- Vedior integration initiatives Design for leader-led Let experts lead from behind to 3 6 program build capability to self-deliver Top team alignment and role Use proven experts to design and modelling is first and most deliver initial steps of the program, critical step to success, and soon and develop Randstad-Vedior to be appointed business unit managers to continue the journey managers (N-1) have to take it independently forward 13
  15. 15. Integration buiding blocks to plan and execute SAMPLE CHART the integration of Randstad & Vedior successfully Define blue print and implementing plan for after closure Integration support 1 Top structure and 5 Functional 4 6 Culture 1 Program office Central appointments/ integration • Assessment project support alignment • HR • Target culture • Marketing • Finance • Pre closure 2 Strategic topics – Investor intervention • Branding Relations • Post closure Communication 2 • Prof.Service – Tax intervention & strategy story strategy – Reporting 3 HQ integration (Re) Branding as a primary – Internal controls & risks (e.g. facilities) strategic and central subject toretention – Profit per- formance 3 People and Local Belgium plan for BEFORE the closure of management – Internal controls redundancy – Insurance, Risk markets France Netherlands the deal & treasury • Legal Synergy • IT 4 definition/ 4 Country • Government tracking/ integration relations baseline • Support functions • Purchasing • Organization • Communications structure 5 Risk • Branding identification and • Branch network mitigation integration • Rollout best practice operating 6 Active model monitoring of ongoing businesses* * Monitoring efforts included, specific efforts to keep the business momentum 14 to be executed by business owners Source:Team analysis
  16. 16. master comms schedules with draft documents, contingency planning - prepared well in advance (Q2, Q4 2007) Communication options and planning General press, Own Target Own Target (EU) Works Target (EU) Own Target Own top Target top Authorities General Own Clients Target EB and MT, Friendly media shareholders shareholders analysts analysts council Works employees employees management management (Nma?) public & clients MD networks independent council flexworkers consultant(s) Rough short term scenario 1: (orderly process) Announcement to other party secret SB only n/a secret n/a secret n/a secret n/a secret n/a tbd secret secret secret secret secret Period of silence secret SB only n/a secret n/a secret n/a secret n/a secret n/a tbd secret secret secret secret secret Actions become public Press release and Press release Press release Press Press Press Press Internal Open letter C Internal tbd Public Press release Informal letter (announcement of intentions or press conference, plus basic plus open letter release plus release plus release plus release plus communication or D conference call message in all plus letter informed leak, rumors) factual EB interview Q&A A ppt and ppt and letter B open letter B message plus branches round as required conference conference or C basic Q&A call call Period of intense (public) Press release and Press release normal IR additional IR Internal memo open letter if internal memo Feed with info attention to process, bidding press conference, plus basic contacts calls as required required if required they can between parties and others regular EB Q&A dessiminate interviews when required Actions resulting in Press release and Press release, Press release Press Press Press Press Open letter Ad in major Press release Informal letter Feed with info announcement of final agreement press conference, letters, notices and release, release, release plus release plus and papers if plus letter, plus they can (or not) background shareholders conference conference meeting meeting announcement required individual announcment dessiminate interviews as meeting? call call of next steps contact IAM at events Initial communication of actions resulting from above required Press release, Press release, Road show letters, notices letters, notices Road show generic communications materials for all management management meetings, meetings Town hall meetings Town hall meetings Informal letter plus Feed with info they can Longer term communication of Press release when business as n/a business as n/a set up new structure business as n/a stakeholders in most scenarios already Adjust I/C n/a (temporized!)m (temporized!)m Public announcment at events Letters and dessiminate actions resulting from above media, systems, eetings with eetings with messages in individual required usual usual usual prepared with fake names long before the then business as usual new colleagues new colleagues all branches, other means contact new IAM Rough short term scenario 2: merger… even before the start of talks – (heavy resistance or rebuttal) massive time savings and stress avoidance Announcement to other party secret SB only n/a secret n/a secret n/a secret n/a secret n/a tbd secret secret secret secret secret Period of silence Actions become public secret Press release and SB only Press release n/a Press release secret Press n/a Press secret Press later later n/a Press secret Internal n/a Open letter C secret Internal n/a tbd tbd secret Public secret Press release secret secret Informal letter secret (announcement of intentions or press conference, plus basic plus open letter release plus release plus release plus release plus communication or D conference call message in all plus letter informed leak, rumors) factual EB interview Q&A A ppt and ppt and letter B open letter B message plus branches round as required conference conference or C basic Q&A call call Period of intense (public) Press release and Press release normal IR additional IR Internal memo open letter if internal memo Ad in main Feed with info attention to process between press conference, plus basic contacts calls as required required if required paper as they can parties and others regular EB Q&A required dessiminate interviews when required Actions to disentangle and start Press release and Press release Press release Press Press Press Press Internal Open letter G Internal tbd Public Press release Informal letter Feed with info up second project (again scenario press conference, plus basic plus open letter release plus release plus release plus release plus communication or H conference call message in all plus letter they can 1 or 2, until stable state is factual EB interview Q&A E ppt and ppt and letter F open letter F message plus branches, ad dessiminate reached) round as required conference conference or G basic Q&A in main call call papers 15
  17. 17. communication aspects/highlights integrated Marketing & Communications - capacity - implementation - ‖stuff‖ involved from the beginning in acquisition strategy - hit the ground running - ―the leak‖ Speed, Momentum, Initiative - involvement vs. democracy small, own team - located next to EB offices 16
  18. 18. communications actions and timing (2008) Q1 2008 Q2 2008 Q3/4 2008 Preparation Integration Internal branding Introduction integration Personal integration communication Integration communication channels communication channels: is leading, fed by: replaced by • Big Match Bulletin • Management Match New communications infrastructure • Web casts Tex (Vedior) • Regular GMMs (both sides) • Joint intranet • Joint intranet content • Management communications workshop • Joint e-newsletter • Management Match • Communication toolkits • Big Match Kick-off event • Joint national magazines • Joint top management ―Elephant‖ session (GTKY) • Big Match Breakfasts • Chat sessions / town hall meetings Internal branding Day-to-day communications • Joint top 50 or top 100 management • Joint cascade of ―GTKY‖ sessions ―Elephant‖ session • Internal branding campaign • Randstad@work • E-link • Continued plans until end 2010 Supported by • Opco magazines & intranets Integration communication channels • Big Match Bulletin • Bighug.com • Joint intranet content 2009  • E-memo management • Big Match welcome package • Opco magazines & intranets • Cultural interventions GTKY process) 2010  Day-to-day communications continued 17
  19. 19. communications actions and timing (2009) Q3/4 2008 2009 2010  Integration Internal branding Integration communication channels Rebranding processes external Management-led intiatives replaced by and internal • Value reconnection program kick-off New communications infrastructure • 106 rebranding projects (with HR) • Joint intranet • 95% of company done by end • Group Management Meetings in new • Joint e-newsletter 2009 style with heavy emphasis on culture • New professionals house style and behaviour • Joint national magazines approved, roll out by ―trailblazer • Setup of renewed global companies‖ Communications and Marketing Internal branding communities, new KPIs etc • Adjust global PA strategy • Joint cascade of ―GTKY‖ sessions • Internal branding campaign Internal branding Day-to-day communications • Refine Continuation plans until • Execute global all-year Randstad 50 • Active profiling new end 2010 program management • Joint culture session in Madrid (successor to Randstad 45) • Joint history recording project • New profesionals house style • New TV campaign-derived developed internal comms materials available • New Opco magazines & intranets • Startup of Randstad 50 project 18 18 6/11/2010
  20. 20. external visibility in press and media: Competitive Volume Analysis: Europe (September 2005 – August 2006) 19
  21. 21. advertising campaigns… the smart way merging 2 organizations = 2 budgets - cut all functional duplication immediately - cut campaign for the disappearing brand immediately - use free budget for extra media during transfer use existing brand equity to leverage new brand equity - name the disappearing brand in the ads for the new brand for a while - phase out gradually as soon as possible, avoid prolonging ―two names‖ be aware of the strategic options - make the choice between boosting share or realizing synergies a name change is an opportunity too – example: - the rebranded TT organizations gained share and margin faster than the average of the company in the applicable countries 20
  22. 22. 21
  23. 23. one common intranet live in May 2008 € 20.56 +0.24 (+1.15%) 22
  24. 24. new ―mission theme‖ development… 23
  25. 25. shaping the world of work
  26. 26. core values know We are experts. We know our clients, their companies, our candidates and our business. In our business it ’s often the details which count the most. serve We achieve through a spirit of excellent service, exceeding the core requirements of our industry. trust We are respectful. We value our relationships, and treat people well. simultaneous We see the bigger picture. Our business must always benefit promotion of society as a whole. all interests We always seek to improve and innovate. We ’re here to striving for delight our clients and candidates in everything we do, right perfection down to the smallest detail. This gives us the edge. 8 25 25 6/11/2010
  27. 27. professionals, staffing and internal examples internal lauch campaigns (example ANZ) 26 26 6/11/2010
  28. 28. 27
  29. 29. 28
  30. 30. summary of overall lessons learned video material - prepare, prepare, prepare - IF you are prepared: faster, faster, faster - at the start, use some limited number of the best advisors and concepts possible - then get the external advisors out as fast as possible - do not allow outsiders to lead sensitive projects - recession almost distracted us for a few months, stay the course 29 29 6/11/2010

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