Merger integration strategy and establish the corresponding integrated management team
Boardroom meeting
L.E.K. summed up five set up integrated management office (IMO) best practices, to help mergers and acquisitions both sides achieve synergies.
Volume XXIV, Issue 30 |
On June 22, 2022

This is the third article of the m&a integration series, we will discuss coordination, the importance of the management for the merger integration process of the system.L.E.K.有数十年的并购整合项目经验,我们深谙IMO的关键作用以及如何建立成功的IMO。IMO是一个团队,IMO之于并购整合项目就如指挥之于管弦乐队。

In the band, the command is not creative music, don't play a musical instrument, but he can make sure all the notes at the right time, in the correct way of rhythm, strength, and played.Similarly, IMO not every decision makers, and is not responsible for the execution of the specific integration activities, it is more in order to ensure that these activities to achieve synchronization and coordination, so that the integration of the project to achieve the best results.As a result, the composition of IMO and operation is critical to the success of m&a integration project.

In a word, the architecture of the IMO way both sides work together to m&a.For example, if the senior management in an organization will to participate in decision-making, so they also need to be directly involved in the IMO.

On the other hand, in a relatively transparent and relatively decentralized decision-making organization, choose a cross-functional deputy department coordination and communication ability to participate in the IMO is usually enough.That also can let boss focus focus on key strategic issues will affect the direction of the integration of new company.

In addition to determine the composition of the IMO, define IMO to interact with the workflow of team is also very important.IMO how better to set the tone for merger and acquisition integration project related activities, and guide team?We summarized a series of key themes.

After integration, optimization

IMO is responsible for the determination of tone and rhythm of m&a integration.Although companies often want to advance process of m&a integration project as soon as possible, but when it comes to some functions, according to the actual situation it is necessary to take a more measured approach.In sales is the most critical for quarter, for example, merger integration may distract the sales team, lead to it cannot achieve the sales target.

When we provide support for enterprise merger integration, often suggested "after the integration, optimization".We encourage our team to focus on the first operation and integration of activities, rather than the start clinging to redesign "optimal" organization, the task is often complex and challenging.Operation of the new company may be related to mergers and acquisitions on both sides of the company's operating way is different, some workflow team will therefore spend extra effort to find the so-called perfect solution.May make mergers and acquisitions, however, the pursuit of "perfect" the two sides miss the best time of integration to achieve synergies as early as possible.

The information center of the IMO as merger integration

Across the workflow actions and decisions are often interrelated, IMO in promoting the parties agreed to play a key role.Usually, IMO will be held weekly progress report, share key information to workflow.IMO to ensure team to understand directly associated workflow progress (especially when plans change), the parties and promote related issues or topics to communicate.These meetings may be very time consuming, but the cross-functional communication and discussion to ensure integration project of harmonious and unified, therefore is necessary.

Certain workflow is relatively independent (for example, in the case of integration degree is low, only a few functions need to be restructuring).In this case, IMO meetings with workflow independent team and ACTS as an information exchange center more efficient, collect the latest information in the workflow and progress of IMO and decide whether to need to share with other workflow and coordination of key information.Plenary meeting, though still necessary, but it can reduce the frequency of each month (for example, or even once a quarter), its function is also more focus on the overall work progress report and provide guidance for key workflow (for example, share the achievements of new company brand work).

The role of "watchdog" and "cheerleaders" balance

We found that the leading role of IMO to a large extent depends on the aspects in the implementation of the consistent within the organization.Some internal might need someone to urge or push to make plan through the ground.In this case, the enterprises need more similar to "watchdog" IMO, to ensure that the project is still on track, and ensure the related goal.There are also some companies may need to IMO the role as "listener", that is to provide a communication platform, let the team members can communicate and review each other's work plan and action.IMO must be flexible to respond to these cultural differences inside the enterprise.

In addition, the size of the m&a integration synergy goals, timelines, complexity, and importance may also affect IMO across a participation in the workflow.If synergy targets more radical, and need to make tough decisions (for example, the selection of middle managers, the layoffs, supplier integration, etc.), IMO should formulate sounder plan, pay more attention to review and pressure test evaluation and related logical basis, to ensure the project forward as planned.In these cases, the IMO should be to promote an important force in project implementation and produce effective results.

The activities of the IMO for whole merger integration project, and the combined entity set the tone.IMO made decisions on how teams interact to produce change, will be in the culture of the new entity and its long-term impact works.We found that those who are willing to invest time carefully designed merger integration management culture of enterprise management, often can be in the shortest possible time to carry out the merger integration plan and achieve superior financial performance.

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