Ciba Vision and Implementing Solutions

CIBA Vision and Implementing Solutions of Operational Issues

Consolidate operations to cut costs and maximize operational efficiencies

One of the most difficult aspects of creating effective corporate mergers is instituting cost-cutting plans that truly realize the operational efficiencies projected to justify the project. While in theory mergers can generate considerable synergies within the newly-consolidated entity, there is often great reluctance to make the difficult decisions necessary to cut costs. These may include layoffs and instituting new consolidation mechanisms and standard operating procedures.

While the financial personnel of Alcon will likely direct the operations regarding the consolidation, it is of vital importance that all organizational members weigh in, to ensure that there is a high level of 'buy-in,' into the proposed plan. The management of CIBA Vision should also discuss what aspects of the business they feel could be integrated into Alcon most smoothly, and what aspects should remain as they are. At present, it is suggested that while there will be a general regional and national manager for each segment of the Alcon-Novartis-CIBA VISION empire, there will also be specialized sales forces and marketing personnel for CIBA Vision.(Chavers & Mota 2010). This will streamline the management yet still allow a personalized adverting and marketing campaign directed at each CIBA consumer segment.

Knowing what to keep and what to cut is essential in restructuring the new Alcon. A thorough audit must be conducted of the entire merged enterprise. However, the proposed plan must be discussed with representatives of all of the involved personnel to ensure that only the unnecessary waste is eliminated. The new vision for the company must also be carefully presented to employees to stress the positives, without being unrealistic. This should take place within the next six months.

Solution 2: Taking a more creative approach to the business

As well as acquiring a new contact lens division, Alcon, the new parent company, should strive to learn from the successes of CIBA Vision, including CIBA's R&D work. Alcon should analyze CIBA's approach to research and send its managers into CIBA's various high-performing departments as observers, to create a list of the operational functions that CIBA does well. This will create a learning exchange between the different divisions of the company -- Alcon should not merely be imposing its organizational structure and philosophy upon CIBA. For the next year the two companies should have such an exchange of ideas. This will also quell another problem with mergers -- the resentment of the smaller entity that the larger company destroys the atmosphere, ethos, and fellowship of the merged unit.

Solution 3: Mixing insider and outsider information