The Institute of Operations Management (IOM) and the Chartered Institute of Logistics and Transport (CILT) have agreed to merge. The merger will expand their combined expertise in supply chain research, education and certification programs. It will create the most comprehensive supply chain body of knowledge and strengthen both organizations' competitive positions. The merger is expected to benefit members, customers, partners and the broader supply chain community. IOM members will vote on ratifying the merger in early June.
2. Merger not Acquisition:
A working model for better together
APICS
AST&L
CILT
IOM
In 2015 APICS merged with AST&L
3. Target Summary Statement
• CILT and IOM have merged
• The merger expands, extends and deepens the end-to-end
operations, manufacturing, logistics and transport body of knowledge
that fuels global supply chain research, education and certification
programs.
• The merged organisation offers unmatched content and subject
matter expertise that will enable individuals and their organisations
to meet key supply chain challenges and achieve operational
excellence.
5. Institute of Operations Management
to Merge with CILT
Combination Extends Expertise of Global Leader in Supply Chain Research,
Research, Education and Certification Programs
On the 23rd March 2016 CILT board meeting, our board of directors agreed in principle to merge with the
Institute of Operations Management, which is commonly referred to as IOM. This is a strategic move and will
significantly increase our content and pool of subject matter experts focused on the planning and control
aspect of supply chain.
Operations management is the core of global commerce; not only but also in manufacturing and logistics.
As a result, there is a real and present need to develop the workforce to meet the needs of this rapidly growing
employment sector. The industry is calling for education and certification programs that will offer individuals
the skills they need ... and employers the trained personnel they need ... to meet customer demand.
This merger positions CILT to build upon IOM legacy, fortify our education and certification programs, and
maintain our industry leadership.
6. Strategic Rationale for integrating
1. Creates the most complete supply chain body of
knowledge in Europe, ME, and Africa
2. Ensures investment, improvement and integrates
operations management content
3. Strengthens CILT competitive position and creates
an integrated platform for growth
This combination is poised to benefit members, customers, partners, and the supply chain
community in so many ways. Specifically, the merger:
7. Strategic Rationale for integrating
We gave this merger careful consideration. For us to move forward, it needed to
benefit, customers, partners and the manufacturing, supply chain, transport and
logistics community.
We believe the merger does this ... and this is why:
First, it creates the most complete supply chain body of knowledge. And it unites the
best known and most respected education and certification brands serving
manufacturing, supply chain, logistics and transport.
Second, it ensures investment, improvement, and continued relevancy of operations
management. CILT has the resources and IOM provides the access to volunteer
subject matter experts committed to building and maintaining a respected and
validated credential program.
Third, it strengthens our collective competitive position and platform for growth.
Transportation and logistics fortified with operations management creates a more
sustainable organisation better positioned to address end-to-end supply chain
education and certification needs.
This combination is poised to benefit members, customers, partners, and the supply chain
community in so many ways. Specifically, the merger:
8. Additional Considerations
1. As the recognised standard in transportation and
logistics industry certifications, CILT is well positioned
to offer chartered operations and supply chain
credentials.
2. IOM and CILT certification programs have been
closely aligned for more than 30 years.
3. CILT has managed the “back office” operations of
IOM since 2007.
9. Additional Considerations
As those of you who have worked through mergers know, cultural fit is
very important. Could our organisations come together successfully?
We believe that CILT’s experience managing membership, research,
education and certification programs in transportation and logistics,
positions us successfully to sell and deliver manufacturing supply
chain credentials.
Our organisations also know each other very well. CILT and IOM
collaborate on many fronts and our certification programs are closely
aligned. And our staff has worked with the IOM team to support IOM’s
members and programmes.
And while all integrations take work, we’re positive that we’re a good
match.
10. Draft Timeline of Activities
Timeline
23rd March:
CILT Board approval
5th May:
IOM member voting begins
3rd June:
IOM member voting ends
16th June:
Announcement at CILT conference
Q: What’s Next?
A: The merger needs to be ratified
by the IOM members. The voting
window opens now and closes on
3rd June. Following an affirmative
IOM member vote, legal documents
will be filed and merger is
completed.
A unification committee comprising
the CILT CEO, IOM SG, and IOM
Manager made recommendations
to the CILT board and CILT staff
have begun to work on these
recommendations.
Until we officially merge, both IOM and CILT will continue to operate separately – it’s “business as
usual.”
12. Question:
Answer:
This transaction can be described as a merger or
combination that allows our organisations to come together.
CILT intends to integrate IOM activities into existing
operations.
Is this a merger or an acquisition?
13. Question:
Answer:
We’ve done significant due diligence.
CILT are very familiar with IOM’s operations because they
have managed most aspects including finance, customer
service and marketing for nearly a decade.
Have the risks been carefully considered?
14. Question:
Answer:
We have a strong commitment from both CILT Board and
IOM SC. We have a dedicated unification committee with
representatives from both CILT and IOM and the CILT
executive team has integration experience. We have an
integration strategy and the necessary resources to ensure
success.
Furthermore, CILT has provided “backroom functions” for
IOM since 2007. During this time, CILT has learned first-
hand about IOM products and services, as well as the
organisation’s operational processes.
What steps are being taken to ensure the success of the merger?
15. Question:
Answer:
Kevin will remain the CEO of CILT; he will be accountable
for realising the benefits of this merger.
The Chair of IOM Steering Group, will be co-opted onto
CILT Board for 1 year from the date of merger. This role is
to ensure that the IOM legacy is recognised and transitions
smoothly into Operations Management within the CILT
story.
Operations Management will continue to be a key feature of
RAG, National and Regional Committees, and many other
CILT events.
Will there be any leadership changes?
16. Question:
Answer:
The point of this merger isn’t to create cost-savings—not for
profit mergers are often different from mergers of publicly
traded companies in this respect. We anticipate some
natural efficiencies as activities are combined.
The key benefits of the merger will be create increased
revenue through sales of professional services and future-
proofing member benefits.
How will “efficiencies” be captured?
17. Question:
Answer:
Our ninth sector, called Operations Management, will be
fully integrated into CILT.
IOM, including APICS, professional development and
training will continue to go to market under the joint CILT
IOM brand.
The IOM has a rich history and it is recognised that our
legacy must become part of the CILT story.
Will there be a new sector, brand or logo?
18. Question:
Answer:
Changing the name of a Chartered Institute is a very difficult undertaking.Currently our
Currently our Institute has about 1000 members andCILT has over 15000. If IOM still had 5000
IOM still had 5000 members then there might be a case to make the huge effort necessary to
effort necessary to add Operations to the title of the merged institute.That said I doubt that
said I doubt that we would be recommending a merger if IOM was thriving. Instead we have
Instead we have secured the additional sector so that OM name and legacy can be clearly
can be clearly incorporated intoCILT.
Members of CILT can align with more than one sector.Currently there are 9000 people
9000 people associated with the SupplyChain Sector.When we merge then the OM sector
the OM sector within our new Institute will have massively more growth potential than IOM
potential than IOM currently does. It would not be unreasonable for OM membership to
membership to multiply in the merged organisation.Ultimately this will give us much more
us much more influence in CILT.
.
Will the name of the merged CILT change to reflect incorporation of IOM?
19. Question:
Answer:
We anticipate that IOM Fellows and Members will transition to
transition to Chartered Fellows and Chartered Members ofCILT.
How will members be impacted?
20. Question:
Answer:
Individuals can choose to maintain IOM alongsideCILT post
post nominals.
It is up to personal choice that whilst CILT membership is
is maintained individuals can elect to maintain their IOM post
IOM post nominals.
CILT CRM will only recognise one set as one membership and
membership and therefore correspondence from the centre will be
centre will be under the CILT reference. So Mick is looking at
looking at alternative ways of retaining this information.
What will happen to IOM members post nominals?
21. Question:
Answer:
Ultimately IOM student members will benefit from the opportunity
opportunity to achieve chartered membership.
Their benefits will not change and we hope to streamline the
streamline the program and make it easier for students to
to navigate.The student membership team will be working out the
working out the details as part of the merger process.
How will student members be impacted?
23. Question:
Answer:
We anticipate minimal impact to CILT in the UK. Nations and
Nations and Regions should gain new members, which could mean
could mean more opportunities to sell and deliver CILT products
products and services.
Active member involvement is very important to both
organisations!We anticipate that IOM volunteers will choose to
choose to serve on CILT national and regional teams and other
and other CILT committees.
How will national and regional organisations be impacted?
24. Question:
Answer:
We anticipate minimal impact to our partners. IOM andCILT share
CILT share a few partners, and our products have coexisted for a
coexisted for a long time.
We don’t foresee anything changing in the near future that would
that would impact our instructors. IOM’s designations are now
are now mostly earned via university or self-study programs.
programs.
How will IOM partners and instructors be impacted?
25. Question:
Answer:
The IOM body of knowledge, brand and reputation are key to
key to realising the key benefits of this change.We’re also
also optimistic that this merger will create some exciting
exciting opportunities.
Forums (Centres of Excellence) within the Operations
Management sector will maintain the content and programs
programs beyond the integration.We are always looking for
looking for willing volunteers to help with this work.We believe
We believe that the merger will provide a platform upon which to
upon which to build our capabilities in manufacturing supply chain
supply chain and operations management.
Will IOM’s certification programs be maintained?
26. Thank you!
If you have additional questions, please contact
Mick.Woodward@iomnet.org.uk
Alternatively join the discussion on IOM group on LinkedIN.
Thank you for listening and thank you for all that you are doing to
advance Operations Management within CILT.