Truly global scale

Acquisitions can be tricky - and the situation for this beauty giant was no different. After buying a rival beauty and luxury product line with global operations, it was looking to seamlessly integrate operations, and set the business up for future growth.

The acquired division had different operating processes, systems, and data maturity. So completing a switch-over within the period of the transitional service agreement (TSA) was critical. It was the only way to ensure that the integration went forward with as little risk as possible, and that the transition remained smooth after the parent company of the acquired company ended their infrastructure support.

Rising operating expenses were also eating into profit margins, resulting in a sub-par financial performance for the beauty brand. The way forward was to build an efficient and harmonized global platform to drive scale and encourage future growth by simplifying, standardizing, and automating processes.

Merger integration was the top priority, so consolidating the operating units and its support entities was key. There was immense pressure on all global and local markets to prioritize and complete the merger. That meant they had to resolve all resource-related conflicts and analyze in-scope and out-of-scope processes accurately for further action.

Genpact redesigned existing processes globally to streamline operations – many of which were out of sync. We had minimal access to operating data, yet our redesign helped them transition to new ways of working in every market. We guided the company as it instituted new systems so both its existing operation and the division it bought could work in harmony. The result was a a noiseless, successful go-live.

We also wanted to guarantee that the same operating metrics, knowledge base, and entry criteria governed all support centers so that the firm could scale work in subsequent phases on a strong foundation of excellence. To that end, we designed and implemented an HR and learning and development framework in our support center in Warsaw in addition to overseeing initial hiring and training.

After Genpact optimized the client’s accounts payable processes, we then worked with the newly purchased division to “lift and shift” these operations to the client’s site in Warsaw and to Genpact’s Kuala Lumpur regional facility. The race was on: All of this had to happen within the tight TSA time period to ensure that data, processes, and dependencies made the transition without a hitch. Some key steps involved in this transition were:

• Putting the right transition methodology in place to accommodate TSA exit conditions, and ensuring that all transactions went live within the transition period. We also made sure all data was on hand in the regional facilities before the TSA period ended – at which point access to this data would no longer be available.
• Adapting transition methodology to support moving several countries to a shared service center in Warsaw once the TSA expired. That meant simultaneously overseeing the full merger, and consolidating operations from a legal standpoint, across all operating regions.
• Instituting change management support for transition and interventions. This support included SME deployment for process and delivery stabilization in the shared service center, backlog reduction assistance, a SWAT team to handle any trailing tasks from the acquired company, and the introduction of a best-in-class internal control framework.

Looking ahead, after the success of this initial lift-and-shift effort our next phase involves transforming, transitioning, and consolidating the firm’s entire finance process for 11 markets in Europe and 12 markets in Asia. We will deliver these services from the Warsaw and Kuala Lumpur offices.

Now, this global cosmetics major could move to a centralized delivery environment seamlessly, with minimal on-site training. The new tool to manage invoices went live, with no pilot – and clocked 100% volumes from day one.

Over the course of the engagement they expect to simplify operations with a single standard process for compliance and internal controls governance. The company also expects to see a significant drop in operating expenses, plus a 35% productivity improvement on top of labor arbitrage. This business transformation is renewing the company.