1. Improving the Performance of Acquired and Merged Operating Units BackgroundBackground The client is a unit of a parent company recognized worldwide as a top manufacturer and seller of pharmaceutical products. The company has nearly 100 donor collection centers in the USA and Europe that provide source plasma for further manufacture into many medical products. SPG’s Consulting AssignmentSPG’s Consulting Assignment The client had acquired the plasma donation centers of another pharmaceuticals company. The president of the company did not want to simply absorb the additional centers and make them a part of the existing network. The goal was to take the best of both cultures and combine them to produce a new hybrid company, incorporating the best business practices from both components. In addition, the business needed a re-examination of the current SOP’s designed and added to over the years, as well as a return to the fundamentals of business management. SPG - Business Analysis FindingsSPG - Business Analysis Findings The SPG analysis used a variety of participative tools and methods to identify the areas that most needed to change, as well as strengths which could be built upon to significantly enhance overall performance. Specifically, the SPG analysis revealed opportunities to improve upon:  Goal setting and performance measurement.  Availability and use of key performance indicators and supporting information.  Cumbersome information delivery processes and systems.  Inconsistencies in the implementation of donor center processes and procedures.  Training to ensure that Regions, Areas and donor centers were well managed.  Leveraging of best practices at the operational levels across the Regions, Areas and donor centers.  Inconsistent donor recruitment and retention programs.  High employee turnover in the donor centers. Results and Quantitative BenefitsResults and Quantitative Benefits SPG consultants and client employees partnered in a 58-week, two phase effort involving design, pilot and implementation. SPG recommended that the client use a joint team approach from both center’s organizations to identify and implement the best-demonstrated practices. SPG partnered with the client team members to generate recommendations in the areas of:  Yield Improvement - to increase the average yield per donation by 7.5 ml and to standardize the calculation/accounting for yield across all of the donor centers.  Process Improvement - to examine every step in the donor cycle, seeking ways to reduce processing time, and improve customer satisfaction, throughput and utilization.  Donor Retention/Frequency - to increase donations from current donors by an average of 1.25 donations per year, and acquire and retain new donors during the process.  Donor Recruitment - to increase new donor recruitment by understanding the donor population (by segment), and create marketing techniques to attract these donors.  Employee Retention - to provide a disciplined process, metrics, and project approach for managers to reduce center turnover and dramatically improve employee retention. Significant financial benefits resulted from the changes implemented in the client’s operating structure and practices, including.  Cost per Liter improved by $2.09.  Annualized benefits of $23,000,000, versus a target of $21,500,000.  The budget, and the project’s target, for liters collected were exceeded.  Labor productivity increased and exceeded targets.  Turnover reduction of 35% in one year vs. target of 8%.  Donor Processing Times were reduced from an average of 150 minutes to 85 – 110 minutes on a consistent basis.  Schrudder Performance Group, LLC. Proprietary Information - 1202