02/16/2024
Integration processes encompass all areas of a company, with IT playing a key role. It makes both internal and external collaboration possible between all stakeholders. Head IT Andreas Kissling from Sika and Head IT Heike Scheckel from the former MBCC Group have the overview.
The successful close of Sika’s acquisition of MBCC in early May 2023 marked the starting point for the IT departments of both companies to start working together toward full integration. The collaboration between the teams headed by Heike Scheckel and Andreas Kissling had already begun during the due diligence phase, when the takeover criteria were being assessed. “At that time, within the IT Expert Team we developed a joint picture of IT at MBCC,” explains Andreas Kissling. “This allowed us to carry out a risk assessment and gauge how complex the potential integration process would be and understand which opportunities the acquisition would offer.”
Coming together in spite of differences
To this end, the experts focused on the points in common and the differences between their respective IT landscapes. MBCC was part of a private equity firm and differed from strategic player Sika in some key aspects. What Heike Scheckel noted first and foremost were the differences in terms of organization: “MBCC’s IT is much more centrally managed than Sika’s. And while Sika places a strong emphasis on in-house support, MBCC has a sizeable outsourcing component and works with a strategic partner.” Andreas Kissling pinpoints one of the biggest differences between the two companies in the IT reporting structures. “At Sika, we have ‘dotted’ reporting lines, which means we report to both line and functional managers. In contrast, MBCC is more centrally organized in its IT, with direct reporting lines right down to local IT. Harmonizing that is something that we will focus on.”
Points in common help
Much more important for both IT managers, however, are the points the two companies have in common. Andreas Kissling is particularly pleased about the high level of professionalism he discovered at MBCC. “Since we also integrate smaller firms into the Sika group of companies, we are sometimes dealing with smaller IT teams. But at MBCC, we have a partner on an equal footing.” It also helps that the two companies have core applications that are practically identical: SAP S/4, Salesforce, Microsoft 365, and Successfactors, to name just a few. This makes migration and employee training much easier and helps with looking after systems.
Heike Scheckel sees the similarities in the way of thinking as a huge positive. “Both IT teams are extremely committed and heavily focused on supporting the strategic goals of the business. And both teams are well-versed in dealing with challenges.”
As the closing date drew closer, the pressure on IT intensified, because the carve-out of MBCC’s concrete admixture business in North America and Europe had to be precisely timed. It was extremely useful that Heike Scheckel had already managed a similar process a few years back with BASF and was able to make good use of her experience: “It would have been much more difficult if we had been operating purely on trial and error,” she explains. And stresses that it was not only down to her: “It is always a team effort that involves the entire team.”
Opening up prospects for new employees
In order to advance Sika’s digitalization roadmap and introduce new technologies such as automation, analytics, or AI, Sika will need many skilled IT and process specialists also in the future. Andreas Kissling: “A strong IT organization helps the business side achieve its strategic targets.” For Heike Scheckel, ensuring that former MBCC employees all find a permanent position within the Sika organization is a top priority. “We have to be able to offer everybody good prospects if we are to retain both them and their know-how in Sika.” As Andreas Kissling explains, the course has already been set:
"For all IT staff of the former MBCC, we already have a joint understanding of where – i.e., in which Sika team – they can generate the most value."
The fact that Sika is present in over 100 countries makes this task much easier. “We will find solutions for all teams all over the world,” says Andreas Kissling. And a recent example proves that these are not just empty words. At the start of 2024, MBCC’s regional IT head of AMEAP (Africa, Middle East, and Asia Pacific) took over the Business by Design platform – the “little sister” of SAP/S4 – and will be based in Zurich. While there will be similar geographic moves, wherever possible staff will be integrated in their respective countries. At MBCC’s former headquarters in Mannheim, a new, additional center of gravity will emerge near Zurich. This is where Heike Scheckel will continue to be based, now as part of the Sika team.
Promising synergy effects
IT integration plays a crucial role in the merger of two companies. It lays the foundation for all employees to be connected and work together taking business forward. All units are fully focused on getting the best out of the two companies to achieve success. In terms of IT, there are various areas where clear synergies can be harnessed. For example, MBCC outsourced some IT services, often working with external partners. “Going forward, we will be able to provide these services via Sika’s IT teams, which are now reinforced with the addition of the MBCC colleagues,” says Andreas Kissling. “This will allow the level of outsourcing to be considerably reduced.” This is the case in the area of cyber security, for example, where important tasks in terms of protection, recognition, and reaction can be transferred from MBCC’s outsourcing partner to Sika’s Cyber Defense team.
But the synergy effects go further than this. The application landscapes of the two companies also offer considerable potential. Both MBCC and Sika work with SAP S/4 HANA, Salesforce, O365, and Successfactors. This makes economies of scale possible in the operation of these application platforms and in license/subscription management. Significant savings are also being targeted when it comes to infrastructure, through the consolidation of networks and data centers, and the systematic progress in the cloud journey.
To ensure optimum use of these many different synergies, the organization has to grow together to a successful whole. “We need to share thoughts and ideas; we need to motivate and support each other,” says Heike Scheckel. “And we also have to celebrate joint successes together – that is how things really start to knit together.”
As for herself, she has enjoyed her start in the Sika world. “I had so many nice experiences that I am very upbeat about what comes next.”
A successful start
For the two managers, there is no question that the members of their teams are highly motivated. That became especially clear on the day of the closing, remembers Andreas Kissling. “I was with Heike and her team in the hours just before the transaction closed. It was buzzing; there were people everywhere going over their checklists to make sure nothing had been forgotten.” Towards the end, Group Management came to watch as Heike Scheckel “pressed the button”. It was clear to everyone in the team that things do not just happen at the touch of a symbolic button, but it sparked their creativity. And despite the fact that they had so much to do, they found the time to build a giant button that could be pressed to mark the official closing. Heike Scheckel smiles: “It also showed that humor is yet another quality of our team.” And for her, an important prerequisite for successful collaboration.
Following the closing in early May 2023, implementation of the integration plan has been taking place on a step-by-step basis. Naturally, both IT managers are hoping everything runs according to plan. Given the sheer dimensions of the undertaking, however, they are aware of the challenges that lie ahead. With their highly motivated teams, they will overcome these challenges, and no doubt many more.