XYZ Eco Group, a company managing eco-friendly urban green spaces, had been using BSC Designer as a core tool for strategic planning. When the company decided to acquire a smaller firm specializing in vertical farms, XYZ Eco Group adapted its existing strategic frameworks, including goal-setting processes, stakeholder alignment practices, and performance tracking tools, to address the challenges of the merger.
Challenges
- Stakeholder Engagement. Addressing concerns from potential clients, employees, investors, and municipal partners about the acquisition.
- Integration Monitoring. Ensuring smooth adoption of new technologies and processes into day-to-day operations.
- Strategic Alignment. Integrating the objectives and operations of the acquired company with XYZ Eco Group’s mission and existing business units.
Solution
Using strategy and functional scorecards automated in BSC Designer, XYZ Eco Group expanded its existing strategy infrastructure to effectively cover the requirements of the M&A process:
1. Defining Objectives for the Acquisition
- XYZ Eco Group defined its strategic goals, including “Diversify income by targeting customers interested in vertical farms, such as hotels and restaurants.”
- Objectives were outlined in the ‘M&A – Vertical Farms’ plan and further broken down into departmental targets for the Green Zone Creation and Smart Management teams.
2. Analysis of Possible Scenarios
- Various M&A scenarios were presented using the ‘number of existing customers adopting vertical farming’ as the main variable.
3. Developing an Integration Plan
- Functional scorecard was created for integration teams to focus on operations, technology, and communication with stakeholders.
- KPIs were set to track progress, such as “Hotel segment revenue growth rate, %” and “% of processes aligned with unified regulatory practices.”
4. Engaging Stakeholders
- A stakeholder analysis identified key concerns and expectations.
- Communication initiatives included Q&A sessions for employees and updates for municipal partners.
- Metrics like “Employee retention rate” and “Stakeholder satisfaction survey results” helped track engagement.
5. Monitoring Progress
- An M&A strategy template was used to establish the controls required to monitor both the preparation for the merger and the actual M&A process.
- BSC Designer’s reporting and dashboard tools were used to track real-time performance, enabling teams to adjust plans based on KPI data.
Results
- Improved Services. Vertical farm technology was successfully integrated, increasing income from the hotel segment by 20%.
- Better Resource Management. By implementing acquired technologies water usage across managed green spaces was reduced by 15%.
- Stronger Stakeholder Relationships. Effective communication and progress tracking reinforced trust among investors and municipal partners.
Conclusion
XYZ Eco Group’s experience shows how adapting an established planning system can simplify complex processes like mergers and acquisitions. By focusing on clear objectives, structured integration, and measurable progress, the company turned a challenging merger into a successful growth initiative.
BSC Designer is strategy execution software that enhances strategy formulation and execution through KPIs, strategy maps, and dashboards. Our proprietary strategy implementation system guides companies in practical application of strategic planning.