Ciba Vision's integration into Alcon through operational consolidation

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 3: Mixing insider and outsider information

Change-resistance after a merger is inevitable, but is considerably more apt to occur if the new managers are perceived as 'outsiders' versus the 'insiders' of the formerly independent company. Alcon must solicit information from ordinary CIBA Vision workers as well as high-level staff and use their input in the structure and timing of new solutions. This creates a positive sense of togetherness between current CIBA employees and new Alcon managers, and prevents an 'us vs. them' dynamic from being generated. CIBA employees should be involved in the process from the time the merger is announced and onward. Remember 'culture eats strategy' -- always be willing to readjust plans, if a clash of organizational cultures is on the horizon. "It does not matter how much planning has gone into implementation mechanics. The key is to align and motivate people from both organizations to make the marriage work" (Park 2009). This must be an ongoing process from day one of the announced merger.