Post-Merger Integration - How to achieve quick wins and successful long-term strategy at the same time?
Following the merger between Fortis and BNP Paribas in 2009, the newly formed entity BGL BNP Paribas S.A. - carried out a very important merger integration programme involving the business and technical platforms of the former BGL and BNP Paribas entities in Luxembourg.
From 2010 to 2012, different projects within this large programme were designed to support the integration of BNP Paribas and BGL. Generally speaking, the strategy of the programme relied on 4 principles:
- The integration effort should be transparent for the customers of the new entity
- Organise the commercial business lines of BGL BNP Paribas along the BNP Paribas model: Retail Banking (RB), Wealth Management (WM) and Corporate and Investment Banking (CIB)
- The technical part of the merger had to go ‘live’ in a ‘big bang’ modus (on a three-day holiday weekend)
- An extensive re-use of existing platforms, which in this case meant pre-existing BGL platforms (with the notable exception of the CIB business line)
To illustrate the complexity and potential pitfalls of the technical part of a merger, we focused on the programme coordination team (CIT) and CIB projects of the programme, largely because the latter proved to be the most complex to implement given the short timeframe.
Inside magazine issue 8, April 2015
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