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IOM and CILT MergerA Civil Partnership

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Merger not Acquisition:A working model for better together

APICS

AST&LCILT

IOM=In 2015 APICS merged with AST&L

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Target Summary Statement• CILT and IOM have merged• The merger expands, extends and deepens the end-to-end

operations, manufacturing, logistics and transport body of knowledge that fuels global supply chain research, education and certification programs. • The merged organisation offers unmatched content and subject

matter expertise that will enable individuals and their organisations to meet key supply chain challenges and achieve operational excellence.

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We have some …

EXCITING NEWS

to share with you…

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Institute of Operations Management

to Merge with CILTCombination Extends Expertise of Global Leader in Supply Chain

Research, Education and Certification ProgramsOn the 23rd March 2016 CILT board meeting, our board of directors agreed in principle to merge with the Institute of Operations Management, which is commonly referred to as IOM. This is a strategic move and will significantly increase our content and pool of subject matter experts focused on the planning and control aspect of supply chain.

Operations management is the core of global commerce; not only but also in manufacturing and logistics. As a result, there is a real and present need to develop the workforce to meet the needs of this rapidly growing employment sector. The industry is calling for education and certification programs that will offer individuals the skills they need ... and employers the trained personnel they need ... to meet customer demand.This merger positions CILT to build upon IOM legacy, fortify our education and certification programs, and maintain our industry leadership.

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Strategic Rationale for integrating

1. Creates the most complete supply chain body of knowledge in Europe, ME, and Africa

2. Ensures investment, improvement and integrates operations management content

3. Strengthens CILT competitive position and creates an integrated platform for growth

This combination is poised to benefit members, customers, partners, and the supply chain community in so many ways. Specifically, the merger:

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Strategic Rationale for integrating

We gave this merger careful consideration. For us to move forward, it needed to benefit, customers, partners and the manufacturing, supply chain, transport and logistics community. We believe the merger does this ... and this is why: First, it creates the most complete supply chain body of knowledge. And it unites the best known and most respected education and certification brands serving manufacturing, supply chain, logistics and transport. Second, it ensures investment, improvement, and continued relevancy of operations management. CILT has the resources and IOM provides the access to volunteer subject matter experts committed to building and maintaining a respected and validated credential program.Third, it strengthens our collective competitive position and platform for growth. Transportation and logistics fortified with operations management creates a more sustainable organisation better positioned to address end-to-end supply chain education and certification needs.

This combination is poised to benefit members, customers, partners, and the supply chain community in so many ways. Specifically, the merger:

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Additional Considerations

1. As the recognised standard in transportation and logistics industry certifications, CILT is well positioned to offer chartered operations and supply chain credentials.

2. IOM and CILT certification programs have been closely aligned for more than 30 years.

3. CILT has managed the “back office” operations of IOM since 2007.

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Additional ConsiderationsAs those of you who have worked through mergers know, cultural fit is very important. Could our organisations come together successfully? We believe that CILT’s experience managing membership, research, education and certification programs in transportation and logistics, positions us successfully to sell and deliver manufacturing supply chain credentials. Our organisations also know each other very well. CILT and IOM collaborate on many fronts and our certification programs are closely aligned. And our staff has worked with the IOM team to support IOM’s members and programmes. And while all integrations take work, we’re positive that we’re a good match.

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Draft Timeline of ActivitiesTimeline23rd March: CILT Board approval5th May: IOM member voting begins3rd June: IOM member voting ends16th June:Announcement at CILT conference

Q: What’s Next?

A: The merger needs to be ratified by the IOM members. The voting window opens now and closes on 3rd June. Following an affirmative IOM member vote, legal documents will be filed and merger is completed.

A unification committee comprising the CILT CEO, IOM SG, and IOM Manager made recommendations to the CILT board and CILT staff have begun to work on these recommendations.Until we officially merge, both IOM and CILT will continue to operate separately – it’s

“business as usual.”

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Questions and Answers

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Question:

Answer:This transaction can be described as a merger or combination that allows our organisations to come together. CILT intends to integrate IOM activities into existing operations.

Is this a merger or an acquisition?

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Question:

Answer:We’ve done significant due diligence. CILT are very familiar with IOM’s operations because they have managed most aspects including finance, customer service and marketing for nearly a decade.

Have the risks been carefully considered?

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Question:

Answer: We have a strong commitment from both CILT Board and IOM SC. We have a dedicated unification committee with representatives from both CILT and IOM and the CILT executive team has integration experience. We have an integration strategy and the necessary resources to ensure success. Furthermore, CILT has provided “backroom functions” for IOM since 2007. During this time, CILT has learned first-hand about IOM products and services, as well as the organisation’s operational processes.

What steps are being taken to ensure the success of the merger?

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Question:

Answer: Kevin will remain the CEO of CILT; he will be accountable for realising the benefits of this merger. The Chair of IOM Steering Group, will be co-opted onto CILT Board for 1 year from the date of merger. This role is to ensure that the IOM legacy is recognised and transitions smoothly into Operations Management within the CILT story. Operations Management will continue to be a key feature of RAG, National and Regional Committees, and many other CILT events.

Will there be any leadership changes?

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Question:

Answer: The point of this merger isn’t to create cost-savings—not for profit mergers are often different from mergers of publicly traded companies in this respect. We anticipate some natural efficiencies as activities are combined. The key benefits of the merger will be create increased revenue through sales of professional services and future-proofing member benefits.

How will “efficiencies” be captured?

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Question:

Answer:Our ninth sector, called Operations Management, will be fully integrated into CILT. IOM, including APICS, professional development and training will continue to go to market under the joint CILT IOM brand.The IOM has a rich history and it is recognised that our legacy must become part of the CILT story.

Will there be a new sector, brand or logo?

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Question:Answer:Changing the name of a Chartered Institute is a very difficult undertaking. Currently our Institute has about 1000 members and CILT has over 15000. If IOM still had 5000 members then there might be a case to make the huge effort necessary to add Operations to the title of the merged institute. That said I doubt that we would be recommending a merger if IOM was thriving. Instead we have secured the additional sector so that OM name and legacy can be clearly incorporated into CILT.

Members of CILT can align with more than one sector. Currently there are 9000 people associated with the Supply Chain Sector. When we merge then the OM sector within our new Institute will have massively more growth potential than IOM currently does. It would not be unreasonable for OM membership to multiply in the merged organisation. Ultimately this will give us much more influence in CILT.

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Will the name of the merged CILT change to reflect incorporation of IOM?

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Question:

Answer:We anticipate that IOM Fellows and Members will transition to Chartered Fellows and Chartered Members of CILT. The membership team is working out the details. We are considering how to retain IOM post nominals; where it is important so to do.It has become apparent that we need to address the position of Honorary Fellows

How will members be impacted?

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Question:

Answer:Individuals can choose to maintain IOM alongside CILT post nominals. It is up to personal choice that whilst CILT membership is maintained individuals can elect to maintain their IOM post nominals. CILT CRM will only recognise one set as one membership and therefore correspondence from the centre will be under the CILT reference. So Mick is looking at alternative ways of retaining this information.

What will happen to IOM members post nominals?

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Question:

Answer:Ultimately IOM student members will benefit from the opportunity to achieve chartered membership. Their benefits will not change and we hope to streamline the program and make it easier for students to navigate. The student membership team will be working out the details as part of the merger process.

How will student members be impacted?

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Question:

Answer:Within CILT Honorary Fellow status has been awarded to a small number of individuals. So Honorary status will be retained for those who have been recognised with this grade this within IOM.

How will Honorary Fellows be impacted?

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Question:

Answer:We anticipate minimal impact to CILT in the UK. Nations and Regions should gain new members, which could mean more opportunities to sell and deliver CILT products and services. Active member involvement is very important to both organisations! We anticipate that IOM volunteers will choose to serve on CILT national and regional teams and other CILT committees.

How will national and regional organisations be impacted?

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Question:

Answer:We anticipate minimal impact to our partners. IOM and CILT share a few partners, and our products have coexisted for a long time.

We don’t foresee anything changing in the near future that would impact our instructors. IOM’s designations are now mostly earned via university or self-study programs.

How will IOM partners and instructors be impacted?

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Question:

Answer:The IOM body of knowledge, brand and reputation are key to realising the key benefits of this change. We’re also optimistic that this merger will create some exciting opportunities. Forums (Centres of Excellence) within the Operations Management sector will maintain the content and programs beyond the integration. We are always looking for willing volunteers to help with this work. We believe that the merger will provide a platform upon which to build our capabilities in manufacturing supply chain and operations management.

Will IOM’s certification programs be maintained?

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Thank you!If you have additional questions, please contact Mick.Woodward@iomnet.org.uk Alternatively join the discussion on IOM group on LinkedIN.Thank you for listening and thank you for all that you are doing to advance Operations Management within CILT.