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Interrogating integration
Up close and personal with Danie Botes
Lisinda Benadie – MMI Corporate Affairs
Up close with Danie Botes, MMI Chief Integration Officer
The merger business case had painted the picture
of the organisation we are building towards. The
man in charge of putting all the pieces into place
is Danie Botes, MMI Chief Integration Officer.
Moment found time in the schedule that shuttles
him between Cape Town and Centurion, to ask him
about the MMI integration.
interrogating
integrationintegration defined
M: What does a chief
integration officer do?
DB: My role is to facilitate, coordinate and to
have oversight of the total MMI integration.
This is necessary to ensure that MMI achieves
the merger benefits stated in the business
case.
M: How would you define
the integration of MMI?
DB: It is the consolidation of two diverse
groups of companies with their different
business models, cultures, geographical
areas, market segments, information systems
and management structures. The primary
focus is not only on integration: we want to
create a successful MMI with a new strategy,
business values and business model.
M: What are the integration focus
areas and how are they progressing?
DB: The philosophy is that the different
business units take full control and ownership
for implementing their new business models.
A merger steering committee, that is a
subcommittee of the MMI Exco, coordinates
the integration. All divisions and corporate
areas are represented on the steering
committee.
The different divisions are well on track
with their individual integration plans and are
busy compiling their three-year plans.
M: Any “early wins” thus far?
DB: Some of the early wins were the
strategic DPI (Decision Processes
International) processes that were done
per division. These delivered direction and
focus, as well as the quick implementation
of structures.
M: Did you have to make
some tough decisions in
this change process?
DB: Any change process is
difficult. It is not easy to
implement new structures and
integrate different cultures; it
takes time and trust is built over
time. Communication is critical
at all levels during a change
process.
When making decisions it
is always important that the
business case prevails. Decisions
should not be based on personal
preferences or other subjective
considerations.
The most difficult decisions
for me are those that affect the
careers of groups of people, for example, to
discontinue with a product line or a system
after people had dedicated time and effort
to make it successful. Such decisions are
never easy and sometimes the process takes
a little bit longer due to the implications
of the decision.
when do we declare integration victory?The integration will be
done when
the business operates within the
new strategy, business model and
structure, and all the integration
benefits are in the BANK. This
means:
• The business is running on a
single line of business systems
per division;
• All data and products have
been converted from previous
systems; and
• The business model has been
optimised.
The process of combining two
or more organisations into a
single entity involves several
organisational systems, such
as people, resources and tasks.
The process of combining these
systems is known as integration.
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You can thrive during this integration
How Thrive can help manage your stress
a picture of Danie’s lifeWhen not integrating MMI,
I de-stress by:
Being busy! I am a very active
person, always busy with one or
other activity. My family grounds
me. I enjoy spending time with my
wife, Marlise, and two daughters,
Dannielle and Clarise. I am also a
keen hunter and game farmer and
over weekends become a horse
breeder/worker/salesman.
My Rugby WC2011 money is on:
The Boks. The All Blacks will choke
again like they did in France. If the
Springboks play at their potential
we might just win the “koppie”
again.
My favorite holiday destination?
Italy. But a variety of others
come close, such as the bushveld,
Namibia and Botswana in winter.
I enjoy skiing and coordinate
ski holidays with horse breeding
activities in Europe.
The three principles
I live by are:
• We are never too old to learn.
• The basic human need is to be
needed.
• Add value to whatever or
whomever I come into contact
with.
Zinhle Mncube
Thrive
At a time when our company is going through
major change, you may find yourself a bit
uncomfortable in your own skin as well.
Shedding the old to make room for the new is
a natural process, although not always easy.
Now more than ever you need to make the
space and time to look after yourself. Thrive
is available to help you through the change
curve and offer you services to help you deal
with the transition and slip into your new role
with greater ease.
Rucksana Christian and Zinhle Mncube
look after staff wellness at Momentum. In
addition to the counseling services that
are available to staff, Thrive has recently
offered Momentum staff the opportunity
to participate in a healthy living initiative,
called Transform your Health. This holistic,
six week process addresses
relevant and realistic ways of
overcoming your
stressors.
thr ve duringyou CAN
this ntegration
Need more information?Send an e-mail to:
[email protected]
“If you turn a light on in a darkened room, it is illuminated
regardless of
how long the room had been in darkness. To me it means that we
have
control over our decisions and the impact we want to make.”
Thrive is piloting a primary healthcare clinic at
Momentum head office. Sister Beverly Van Wyk is
available at the ground floor medical suites on Mondays,
Wednesdays and Fridays from 11am - 4pm to answer
your questions and meet your primary healthcare needs.
Make an appointment to see her by calling
012 684-4084.
On Tuesdays, the clinic provides HIV testing and
counseling. Multiply members can earn points by
completing an online declaration available on the Multiply
website: www.multiply.co.za
All of these services are offered privately and
confidentially.
call Sister Beverly
integral part of my responsibilities.
Getting back into the IT space is
actually refreshing. Technology is an
important building block to achieve
a successful integration.
M: What is the progress
on MMI HR policies?
DB: The People Integration
Programme (PIP) was created to
manage the integration of the HR
related functions. The programme
will address issues such as values and people
practices.
M: Has the Group’s web
strategy been finalised yet?
DB: There is not a single web strategy for
MMI. The different divisions will have their
own web strategies within a MMI framework
and the client branding strategies.
MMI shares are a good buy because…From an investor perspective,
MMI
has a compelling growth story
based on the following:
• Integration benefits that none
of the other players have.
• MMI is the only viable
competitor to Discovery in the
health space.
• MMI has a significant client
base across all market
segments with real cross sell
opportunities.
M: What are the priorities of the
integration for the next six months?
DB: From a MMI business model perspective
the restructuring and integration of the
support functions, HR, Finance, and IT
Infrastructure must be finalised by the end
of June 2011. Each division has its own plan
for the next six months, varying from system
integrations to finalisation of structures
and responsibilities as well as product
consolidation.
Overall coordination and managing of the
interdependencies of the different projects
and deliverables are crucial, specifically
around the business systems and data
migration projects.
The success of any business or project
is subject to the people that must manage
and implement
these projects. It is
therefore important
that the best
qualified people take
responsibility for
them.
M: What do you
consider to be
the single best
predictor of
merger integration
success?
DB: The agreement
and “buy-in” of all
parties into the future business model and
the level of trust that exists between the
different parties.
M: How are you finding the IT challenge?
DB: I have a fairly good understanding
of IT, specifically around the business
application side. During my 20 years in
business, technology had always been an
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14 b u s i n e s s m o m e n t s 15b u s i n e s s m o m e n t
s
The need for responsible speed
The better you drive, the less you pay
If there’s one thing that all consumers
have in common, it would be the need for
a short-term insurance product that caters
specifically for responsible individuals.
According to the Road Traffic Management
Corporation Traffic Report for 2009
(www.arrivealive.co.za), the biggest
contributing factors in fatal accidents are
excessive speed (35.40%) and people losing
control in sharp bends (27.99%).
Momentum Short-term Insurance has
developed a new product for those who have
come to realise that being the fastest and
most daring driver on the road is not actually
something to be proud of. Momentum
Responsible Driving is comprehensive
insurance for vehicles where the premium
you pay depends on your driving behaviour.
If your mileage is low and you have good
driving habits, this product is ideally suited
for you.
The cornerstone of Momentum Short-term
Insurance’s success has always been
their ability to rate risk correctly. With a
sophisticated methodology of scientifically
underwriting each client individually, they are
able to determine and manage certain risk
factors, which made this new venture almost
the next logical step to take.
Pieter Erasmus, head of marketing, sales
and distribution at Momentum Short-term
Insurance, explains: “The success of the
initiative rests on the concept of rewarding
responsible and safe driving behaviour.
Premiums are thus based on how you drive
and not just how far, as is usually the case.”
the need for
speedThousands of people lose their lives on South Africa’s
roads every year. Understanding that the best way to change
behaviour is to involve people’s back pockets, Momentum Short-term
Insurance introduces vehicle insurance where the premium you pay
depends on how you drive.
Premiums will be reviewed once a year –
at the anniversary of your policy – and
adapted according to the data received from
Tracker. In this way clients can still budget for
their insurance premium, as it will not change
every month. “We envisage that the ultimate
saving for responsible drivers could be up to
20% of the premium,” says Pieter. Should a
client generally not stay within the guidelines,
it could mean that the premium can increase
after 12 months.
Momentum Responsible Driving monitors
policy holders’ driving behaviour through
a sophisticated Tracker Skytrax device
which is fitted to the client’s vehicle. A
separate 36-month contract is concluded
with Tracker in order to have the device
installed and to qualify for the product.
The device monitors:
• Speed
• Acceleration
• Deceleration
• Cornering
• Time of day
• Mileage
results at your fingertipsPieter says that clients will receive
a detailed monthly report from MSTI, regarding their
driving behaviour in the previous month. “This information
consists
of statistics that compare key factors (e.g. speeding,
harsh braking and cornering) against the average score
of clients with this product.”
Clients can also log on to the MSTI website with a
username and password to access their driving behaviour
information.
www.momentumsti.co.za/ResponsibleDriving
For more information on this exciting new product, contact:
• Your financial adviser
• Your Momentum planner
• The MSTI call centre: 08 6000 6784
are you a responsible driver?If you can tick all these boxes,
then
Momentum Responsible Driving is the
vehicle insurance product for you:
n Drive less than 15,000 km per yearn Stay within the speed
limitn Don’t drive through corners at
excessive speeds
n Don’t brake or accelerate harshly n Don’t often travel at
night
how do they do it?
