Managing the HR challenges of a major global merger
| Published date | 01 November 2004 |
| Date | 01 November 2004 |
| Pages | 24-26 |
| DOI | https://doi.org/10.1108/14754390480000577 |
| Author | Nigel Perks |
| Subject Matter | HR & organizational behaviour |
N DECEMBER 2002, Logica and CMG
completed a merger that created the third largest
quoted IT services company in Europe. Today
LogicaCMG employs around 20,000 people
across 34 countries and delivers IT management,
consultancy, system integration and outsourcing
services to customers spanning industries such as
telecoms, transport, utilities and financial services as
well as the public sector.
The merger presented an opportunity to undertake
an objective review of HR policy and services across
the newly created business and establish best practice.
More importantly, it provided a chance to implement
HR initiatives that would enable motivational and
productive working environments across all operations,
regardless of location.
Company backgrounds
Both companies were established in the 1960s and
targeted similar markets, notably financial services,
defence, public sector and telecoms. They competed
head-to-head for business and both employed highly
skilled, well qualified software development
professionals, consultants and analysts. This meant that
there were already synergies in place that would help to
achieve a successful merger.
Logica and CMG had leading market positions and
critical mass in the UK, Benelux, France, Germany and
Australia, as well as in the Americas and Asia-Pacific
regions. The merged business would be able to
strengthen its market position in these territories, add
more value to its clients, invest more in research and
development and, for its shareholders, become a
stronger contender to win business and return value.
But beyond the undisputed logic of the merger lay
the pragmatic challenge of integrating and managing
just over 20,000 people across the world. Technical
skills and business domain know-how are
LogicaCMG’s strengths, so retaining and developing
those skills through and beyond the merger was a key
priority. Retaining and recruiting experts who manage
client relationships, analyze and problem solve, create
solutions and manage complex and challenging projects
is critical to the future performance of LogicaCMG
and the success of our clients.
The pre-planning phase
The more work that could be done before the merger
was completed would help in the swift implementation
of new processes and procedures, as well as identifying
key individuals within the new structure.
It was important during this pre-planning phase to
build a new HR strategy that would not only establish
best practice for the future, but also honor the past of
both companies. Every employee had a history of working
at either Logica or CMG and were all very passionate
about their roots and both companies’ successes.
24 Volume 4 Issue 1 November/December 2004
Managing the
HR challenges
of a major
global merger
How HR underpinned the successful
merger between Logica and CMG
Mergers bring with them a host of issues and can
represent a major challenge for HR. The 2002 merger
that formed LogicaCMG was seen as an opportunity
to combine the strengths of the two legacy companies
and roll out best practice HR programs. Nigel Perks,
group HR director, explains how they did it.
by Nigel Perks
LogicaCMG I
© Melcrum Publishing Ltd. 2004. For more information, go to www.melcrum.com or e-mail info@melcrum.com
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