How do you carry out a carve-out or IS merger?

Podcast with Jérôme Marsaud

Jérôme Marsaud, member of the Communauté Infortive, shares with us his experiences in the field of carve-outs / mergers of Information Systems. We're talking about in-depth IS restructuring, in often complex political environments.

Jérôme usually intervenes after the TSA (Transition Service Agreement) has been signed, on the execution side.

In his interview, he discusses In his interview, he discusses :

• The key issues for interim managers after a carve-out
• Involvement of business teams  
• Key factors in the success of an IS Transition Management assignment

Enjoy!

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What are the key success factors for an IS Transition Management assignment?

The right Transition CIO posture with teams

Jérôme stresses the importance of the Transition CIO's neutrality:

"Right from the start, we're not here to stay, but to carry out a mission. And the teams know that. That's the Transition Manager's great strength: the deal is clear: I'm there to find solutions and set up an organization that will hold up tomorrow, doing the best for everyone."

This neutral stance is embodied in a close dialogue with all departments.

With the HR Director and the General Manager, we need to be able to project ourselves into the future organization, even beyond the IS part. It's essential to know how the company will be structured, and for this to be thought through in conjunction with the IS, so as to know what's most relevant, in terms of industrialization of professions for example.

With the CFO, the primary financial interaction will be in relation to the cost of the project and the cost of tomorrow's "run". You need to be able to give the CFO and GM a clear picture of what it's going to cost and why. And also, beyond the cost of the project, which will have to be amortized, how much it will cost "at cruising speed" to run the company.
It is also important to be able to discuss with the general and financial management to assess how the IS can meet the company's structuring needs and objectives in terms of sales and profitability, via processing automation, BI and visibility on company indicators.

Maintaining a partnership with suppliers

‍Weneed to position ourselves as a real partner with suppliers, which requires transparency. It's all about giving them visibility on the transition as quickly as possible. The challenge is to keep them motivated so that everything goes smoothly. Jérôme admits that from time to time he makes use of his status as a Transition Manager who will need services for other companies later on.

Move fast = decide fast! The key to decision-making

For Jérôme Marsaud, the key to success is speed of execution. And this speed depends on having a clear view of the objective, so as to be able to make quick decisions.

"To achieve this, the fundamental point is to be able to bring the right decision-making elements to the CEO. And that's the responsibility of the Transition CIO. The challenge will be to find and propose balanced decision-making positions that can satisfy everyone, from both the business and political points of view."

Find your replacement!

‍Ingeneral, Jérôme Marsaud seeks, with the agreement of the CEO , to recruit his replacement from among the existing teams. He is quick to identify this new CIO, so that he can build up his skills through coaching or training. This ensures continuity and reinforces the CIO's legitimacy. Jérôme insists on the importance, beyond the technical side, of relationships in the role of CIO.

In conclusion, "In a carve-out, the CIO must be a true solution provider to senior management."
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If you'd like to discover the podcast dedicated to preparing for a carve-out, check out Thierry Haro's podcast.