integration - Blog - Global Risk Community2024-03-28T08:43:20Zhttps://globalriskcommunity.com/profiles/blogs/feed/tag/integrationTransforming Risk Management into Risk Intelligencehttps://globalriskcommunity.com/profiles/blogs/transforming-risk-management-into-risk-intelligence2021-05-01T05:30:00.000Z2021-05-01T05:30:00.000ZEce Karelhttps://globalriskcommunity.com/members/EceKarel<div><p><span style="font-size:24pt;"><strong>Transforming Risk Management into Risk Intelligence</strong></span><br /> <br /> <a href="{{#staticFileLink}}8866046693,RESIZE_1200x{{/staticFileLink}}"><img class="align-full" src="{{#staticFileLink}}8866130477,RESIZE_710x{{/staticFileLink}}" alt="8866130477?profile=RESIZE_710x" width="710" /></a></p>
<p><span style="font-weight:400;">In one of our latest interviews, we've been joined by Will Anderson, the CEO of </span><a href="http://www.resolver.com"><span style="font-weight:400;">Resolver.inc</span></a><span style="font-weight:400;">. Resolver provides an integrated risk management software for mid to large-sized organizations to empower business, to move faster. The solutions include risk management, corporate security, business resilience, and IT risk. Over 1,000 organizations worldwide depend on Resolver’s security, risk and compliance software. That’s about 1,000,000 people using Resolver each day. With their prominence in the field, they have taken the role of </span><strong>transforming risk management to risk intelligence</strong><span style="font-weight:400;">, in order to bring more insight into the executive table, and for a better decision making process. We're happy to present you a few key points from this interview.</span></p>
<h2><span style="font-size:18pt;"><strong>What is No Code Risk Management?</strong></span></h2>
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<p><span style="font-weight:400;">Bringing more insight to the executive requires us to get it </span><strong>from the first line, </strong><span style="font-weight:400;">which is not always the easiest. Historically, what was happening was that any sort of assessment, whether that be a risk assessment, or a control assessment or asking someone questions about compliance, it’s going onto their desk and it’s being sent in Excel forms or sort of large enterprise software, that’s hard to use. This means that in order to get good quality and accurate </span><strong>we have to be able to engage that front line with something that looks more like a consumer app</strong><span style="font-weight:400;">. So the way to go is to build software with a so-called</span><strong> no-code platform, rather than hard-coding</strong><span style="font-weight:400;"> that allows us to tailor the platform to the exact needs of that customer. However, customized solutions can become expensive and inefficient with each change they may require in the future. Nevertheless, with customer-centered companies like Resolver, this also becomes avoidable, as with administrator training and easy configuration options, you won't need to go to the developer each time for tweaks. This allows user to connect a risk to the things that they care about, whether that be a process or an objective or a decision or a project in an agile matter.</span></p>
<h2><span style="font-size:18pt;"><strong>Major Trends In the Risk Management Discipline during the Pandemic</strong></span></h2>
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<p><span style="font-weight:400;">Just like in many other fields,</span> <span style="font-weight:400;">the biggest question and challenge here is</span><strong> how do we prevent it from happening next time?</strong><span style="font-weight:400;"> And secondly, </span><strong>how we can make sure we can make the sessions and training fully online and efficient.</strong></p>
<p><span style="font-weight:400;">Europe is much more mature than North America on the concept of the continuous assessment without being in person. There is more interest in such business continuity, although this may not be permanent as the interest has scaled down further we went through returning back to normal state. Europe is also driving a lot in terms of Incident management as there are more serious requirements in Canada and in EU. That’s probably the bigger driver we’ve seen in the last sort of three to six months. </span><span style="font-weight:400;"><br /> </span><span style="font-weight:400;"><br /> </span><span style="font-weight:400;">On top of these, there's also a trend to more integration. Accordingly, you should be auditing the controls you say are strong for areas that you say are high risk. There is a lot of integration especially on the European side and the cyber security topic is also commonly discussed. For a tech company, this is especially very crucial, and their most important risk involves around cyber security. Any big breach could mean the shutdown of operations. In other organizations of course, this is one of many risks and it's important for both companies and decision making organisations to focus on topics such as regulatory risk or safety risk in an equal manner - especially moving onto future challenges from the pandemic. </span><strong>It is important to not over-focus on one trend as we might lose sight of something that’s equally big, which doesn’t have the attention of today.</strong></p>
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<h2><span style="font-size:18pt;"><strong>What Role Does Technology Play in Risk Management? </strong></span></h2>
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<p><span style="font-weight:400;">There are a lot of new emerging technologies such as artificial intelligence, machine learning and they have been talked about by everyone in every industry. The question is, if they are really going to be implemented or not. </span><span style="font-weight:400;">Most likely, but it doesn't come without its risks. For example, in terms of it being deployed in GRC, we have deployed it more on the Incident side because we get in narrative complaints. And what ends up happening is that that’s a block of text and you can search it, but sometimes you want to connect data points together. </span><strong>So it is important for proper AI implementation, to be able to go through a block of text and identify people, organizations, dates, times, places, that sort of thing, and turn it into usable tags. </strong><span style="font-weight:400;">So that if you have an organization show up multiple times in a compliance violation that will be picked up. If it’s just a narrative, it’s not.</span></p>
<h2><span style="font-size:18pt;"><strong>Thoughts on Objective Centric Risk Management </strong></span></h2>
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<p><span style="font-weight:400;">There’s no sense in assessing a risk against something that doesn’t matter and what matters are ultimately the objectives of the corporation. And if you want to be relevant at the executive level, you have to talk in the line, which they're used to talking in. However, there is importance in differentiating what exactly you mean with risk management, as it can range from operational risk to enterprise risk management. Oftentimes risk management is used to also mean ERM, or enterprise risk management, however, there is a bit of difference. It’s not just assessing risk to assess Risk, it’s like a box checking exercise and that’s not going to be valuable. </span></p>
<p><span style="font-weight:400;">According to Will, when you speak to you definitely do need to tie to objective. However he adds, that there’s some place where we go too far. And that is, on the expert level, the idea of modeling everything. </span><strong>You need the flexibility of a purpose-built modeling solution.</strong><span style="font-weight:400;"> And I think if you get really tied down that everything must be quantified and everything must be modeled, you’re going to miss some nuances that you can’t model. Regardless, quantification is still quite important</span><strong>, </strong><span style="font-weight:400;">and this is not to mean to not quantify. What it means is to remember that there’s a lot of things in this world that you can’t model.</span><strong> And if you focus only on modeling, you’re going to miss some qualitative things that are important.</strong></p>
<h2><span style="font-size:18pt;"><strong>Takeaway Points</strong></span></h2>
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<p><strong>The first takeaway is consumerization and focusing on your first line.</strong><span style="font-weight:400;"> If you are not getting good data, there’s no sense in focusing on reporting and all of the other stuff. If your data is no good or you’re getting it a month behind, you’re in trouble. COVID is a great example, considering that no one had a pandemic on their January, 2020 Risk plan. And if you were doing a quarterly, you’d come back in April and the world is upside down. This is an extreme example, but those kinds of high velocity risks happen all the time. So it is important to be very focused on the front line, get integrated with them to make it easy for them.</span><span style="font-weight:400;"><br /> </span><span style="font-weight:400;"><br /> </span><strong>The second takeaway is integration</strong><span style="font-weight:400;">. Now we are seeing more and more of that but buying siloed systems for SOX and ERM, and compliance and IT Risk does not make much sense. They may have more bells and whistles, but you’ll gain more by asking the assessment once instead of asking people the same thing at different systems or trying to stitch them together.</span><span style="font-weight:400;"><br /> <br /> </span></p>
<h2><span style="font-size:18pt;"><strong>Closing Words</strong></span><span style="font-weight:400;"><br /> </span></h2>
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<p><span style="font-weight:400;"><br /> For now, this sums up the key points of our interview. As the Global Risk Community team, we once again thank Will Anderson for his insight on risk intelligence and providing a solution with Resolver. More information about this topic is available in our interview, which is accessible <a href="https://globalriskcommunity.com/video/interview-with-will-anderson-ceo-at-resolver">here</a>:<br /> </span></p>
<p><br /> <br /> Our blogs are also available on <a href="https://medium.com/global-risk-community/transforming-risk-management-into-risk-intelligence-9185e65d567a" target="_blank">Medium</a></p></div>Operating Room Integration Technologies are Transforming Health Carehttps://globalriskcommunity.com/profiles/blogs/operating-room-integration-technologies-are-transforming-health2020-08-03T06:36:56.000Z2020-08-03T06:36:56.000ZKBV Researchhttps://globalriskcommunity.com/members/KBVResearch<div><p>The concept of operating room (OR) integration has been introduced to streamline and automate the operating room by consolidating data, video access, and controls for all of these devices at the central command station. OR integration could allow the surgical staff to perform many of their tasks efficiently without having to move around the operating room. OR integration most commonly involves stopping displays and imaging modalities within the OR, eliminating trip-hazards created by wiring, and providing easy access and exposure of surgical video.</p><p></p><p><a href="{{#staticFileLink}}8028331069,original{{/staticFileLink}}" target="_blank"><img src="{{#staticFileLink}}8028331069,original{{/staticFileLink}}" class="align-center" alt="8028331069?profile=original" /></a></p><h2><strong>All about the concept of operating room integration</strong></h2><p>The <a href="https://www.kbvresearch.com/operating-room-integration-market/">operating room integration technology</a> is available in a range of structures and rates, promoting low-complexity operating rooms to high-volume, complex ORs. The simplest OR integration systems facilitate easy simulation of a few devices on a few screens within the OR, while more sophisticated systems can simplify video routing, image capturing, and device control.</p><p></p><p>OR Integration Solutions tailored to high-complexity ORs build on these capabilities, incorporate the ability to link and monitor several computers, work together in real-time using video conferencing or streaming, and support enhanced 4 K ultra-high definition visualization.</p><p></p><p>The structure of the Integrated OR reflects the types of operations conducted in the room, the medical devices to be used where surgical footage has to be displayed, the space required, and the need for longevity. The integration provider works closely with the hospital to design operating rooms that support their unique needs and support efficient and safe operating rooms.</p><p></p><p>OR integration makes it possible for the hospital to find equipment in the room. For example, cart-based devices may be mounted on the wall, if desired, connected to the integration network to allow the clinical staff to display the footage of the device in the OR. In the same way, the endoscopic towers can be located on the equipment boom in the OR, keeping the floor and the surrounding areas clear of the associated wires. Displays are often mounted inside the Integrated OR, on walls or light arms instead of on roller carts, so that surgical video can be easily viewed from anywhere in the OR.</p><p></p><h2><strong>Why is operating room integration important?</strong></h2><p>Due to the advent of new medical and imaging equipment for the operating room (also known as Operation Theater), operating rooms are becoming highly congested and complicated with a plethora of OR tools and monitors. In addition to booms, surgical tables, surgical lighting and space lighting placed in the OR, various surgical displays, communication system monitors, etc.</p><p></p><h2><strong>Benefits of the introduction of operating room integration:</strong></h2><p>An operating room can be a stressful environment requiring concentration, performance, coordination, and expertise. Without operating room integration, surgical teams continue to navigate around the operating room and perform a variety of tasks. These tasks include checking the patient information computer, writing this information on a whiteboard, moving to the wall to control OR lighting, entering the surgical field to display or change the video they are viewing, and more. The movement and time required to complete these tasks slow down the procedure and can deter attention from where it is most needed: on the patient.</p><p></p><p>The operating room integration systems consolidate and coordinate all patient data for surgical personnel during the operation, reducing complexity and streamlining information through various platforms. By OR integration, surgical personnel have streamlined access to the controls and information they require – to monitor patient records, control room or surgical lights, display images during surgery, and more. OR Integration provides OR staff with improved flexibility, health, and reliability to maintain the emphasis on ensuring patient care.</p><p></p><p>Currently, the benefits of OR integration often extend beyond the operating room as OR Integration connects and supports teams, processes, and information across the operative workflow. For instance, OR Integration enables in-OR teams to share real-time surgical video with remote consultants or students' classrooms for teaching applications. During a procedure, a clinician can conveniently view high-definition pictures of the treatment on a tablet during a post-operative visit with the patient and family. OR Integration ensures that these images and videos are automatically linked to the patient record for accurate documentation of each procedure.</p><p></p><h2><strong>Types of devices in operating room integration:</strong></h2><h3><strong>Audio Video Management System</strong></h3><p>Video conferencing technologies can improve the performance of Webcasts and Webinars by offering two-way video and audio without the need for a phone call between the operations room and one or more sites. The resolution of a video call is generally (but not always) greater than that of a webcast or a webinar. Video conferencing equipment is useful for consultation with the pathology department, ICU, radiology, other surgeons, or in any case where both parties need to transmit and securely receive photographs and audio.</p><p></p><p>Although video conferencing has previously used the form of switched connection known as the ISDN line, the expense of building and retaining such lines has contributed to the introduction of video conferencing systems that connect via the data network. Also known as IP video conferencing, it is becoming the standard connection method for standard and even high-definition video conference systems.</p><p></p><h3><strong>Display System</strong></h3><p>The remote display technology (projectors and flat panels) has to be capable of managing video feed resolution from the centralized operating room (and vice versa in the case of a two-way connection). Many projectors in current meeting rooms are not capable of displaying high-definition formats that an advanced operating room would and should have. Specialized electronics must be placed between locations which "scale" or translate between formats. Many display systems have built-in scaling features, but most do not reach all resolutions and are usually of inferior quality to outboard scaling equipment.</p><p></p><p>The display subsystem consists of high-definition flat panels attached to flexible arms positioned next to the surgical site. The surgeon can route a wide range of video and information sources to any of the displays. High-definition cameras mounted to endoscopes or built into the surgical light are the most common sources for displays. In the case of minimally invasive procedures, endoscope camera images may be the only view of the surgical field.</p><p></p><h3><strong>To sum up</strong></h3><p>Regardless of the procedures performed, the OR is one of electronics and cabling's harshest and most complicated environments – particularly those that are regularly treated and plugged/unplugged. Consequently, components of an OR integration system are also designed to withstand the rigors of the operating room climate. It includes weathering ability for regular cleaning, rough handling, and effects. To ensure durability, some of the components that are most vulnerable to injuries, such as surgical displays and video cables in the surgical field, are reinforced.</p><p></p><p><strong>Free Valuable Insights:</strong> <a href="https://www.kbvresearch.com/news/operating-room-integration-market/">Global Operating Room Integration Market to reach a market size of USD 2.5 billion by 2026</a></p><p></p><p>The operating room of the future will be distinguished by meticulous preoperative preparation, complete incorporation of the operating room into the general knowledge flow, more detailed intraoperative diagnostic imaging techniques, and the use of advanced simulation technologies like virtual reality. Mechatronic support (partially autonomous robots) increases safety and allows for staff reduction. Operating room integration Integrated operating room systems would allow the operations team to easily monitor the broad variety of new technologies and functionalities.</p></div>How to Create a Next-Generation Learning Organization That Enables Digital Transformation?https://globalriskcommunity.com/profiles/blogs/how-to-create-a-next-generation-learning-organization-that2020-07-27T09:01:25.000Z2020-07-27T09:01:25.000ZMark Bridgeshttps://globalriskcommunity.com/members/MarkBridges<div><p><a href="{{#staticFileLink}}8028327853,original{{/staticFileLink}}" target="_blank"><img class="align-right" src="{{#staticFileLink}}8028327853,original{{/staticFileLink}}" alt="8028327853?profile=original" width="300" /></a>Survival of a business in this digital age largely depends on its ability to timely embrace Digital Transformation. Digital Transformation entails using Digital Technologies to streamline business processes, culture, and customer experiences.</p><p>In order to compete today—and in future—and to enable Digital Transformation, organizations should work towards fostering a culture of continuous learning, since Digital Transformation depends on learning and innovation. The organizations that holistically embrace this culture are called “<a href="https://flevy.com/browse/flevypro/digital-transformation-next-generation-learning-organization-5158">Next-Generation Learning Organizations</a>.”</p><p>The next generation of Learning Organizations capitalize on the following key variables; Humans, Machines, Timescales, and Scope. These organizations incorporate technology in enabling dynamic learning. Creating Next-Generation Learning Organizations demands reorganizing the entire enterprise to accomplish the following key functions to win in future:</p><ol><li><strong>Learning on Multiple Timescales</strong></li><li><strong>Man and Machine Integration</strong></li><li><strong>Expanding the Ecosystem</strong></li><li><strong>Continuous Learning</strong></li></ol><p><a href="https://flevy.com/browse/flevypro/digital-transformation-next-generation-learning-organization-5158"><img class="aligncenter size-full wp-image-7153" src="https://flevy.com/blog/wp-content/uploads/2020/07/image-2.png" alt="" width="1200" height="1080" /></a></p><h3><strong>Learning on Multiple Timescales</strong></h3><p>Next-Generation Learning Organizations make the best use of their time. They appreciate the objectives that can be realized in the short term and those that take long term to accomplish. Learning quickly and in the short term is what many organizations are already doing, e.g., by using Artificial Intelligence, algorithms, or dynamic pricing. Other learning variables that effect an organization gradually are also critical, e.g., changing social attitudes.</p><h3><strong>Man and Machine Integration</strong></h3><p>Rather than having people to design and control processes, Next-generation Learning Organizations employ intelligent machines that learn and adjust accordingly. The role of people in such organizations keeps evolving to supplement intelligent machines.</p><h3><strong>Expanding the Ecosystem</strong></h3><p>The Next-generation Learning Organizations incorporate economic activities beyond their boundaries. These organizations act like platform businesses that facilitate exchanges between consumers and producers by harnessing and creating large networks of users and resources available on demand. These ecosystems are a valuable source for enhanced learning opportunities, rapid experimentation, access to larger data pools, and a wide network of suppliers.</p><h3><strong>Continuous Learning</strong></h3><p>Next-generation Learning Organizations make learning part and parcel of every function and process in their enterprise. They adapt their vision and strategies based on the changing external environments, competition, and market; and extend learning to everything they do.</p><p>With the constantly-evolving technology landscape, organizations will require different capabilities and structures to sustain in future. A majority of the organizations today are able to operate only in steady business settings. Transforming these organizations into the Next-Generation Learning Organizations—that are able to effectively traverse the volatile economic environment, competitive landscapes, and unpredictable future—necessitates them to implement these 5 pillars of learning:</p><ol><li><strong>Digital Transformation</strong></li><li><strong>Human Cognition Improvement</strong></li><li><strong>Man and Machine Relationship</strong></li><li><strong>Expanded Ecosystems</strong></li><li><strong>Management Innovation</strong></li></ol><p><strong>1. Digital Transformation</strong></p><p>Traditional organizations—that are dependent on structures and human involvement in decision making—use technology to simply execute a predesigned process repeatedly or to gain incremental improvements in their existing processes. The <a href="https://flevy.com/browse/flevypro/digital-transformation-next-generation-learning-organization-5158">Next</a><a href="https://flevy.com/browse/flevypro/digital-transformation-next-generation-learning-organization-5158">-generation Learning Organizations (NLOs)</a>, in contrast, are governed by their aspiration to continuously seek knowledge by leveraging technology. NLOs implement automation and autonomous decision-making across their businesses to learn at faster timescales. They design autonomous systems by integrating multiple technologies and learning loops.</p><p><strong>2. Human Cognition Improvement</strong></p><p>NLOs understand AI’s edge at quickly analyzing correlations in complex data sets and are aware of the inadequacies that AI and machines have in terms of reasoning abilities. They focus on the unique strengths of human cognition and assign people roles that add value—e.g., understanding causal relationships, drawing causal inference, counterfactual thinking, and creativity. Design is the center of attention of these organizations and they utilize human imagination and creativity to generate new ideas and produce novel products.</p><p><strong>3. Man and Machine Relationship</strong></p><p>Next-generation Learning Organizations (NLOs) make the best use of humans and machines combined. They utilize machines to recognize patterns in complex data and deploy people to decipher causal relationships and spark innovative thinking. NLOs make humans and machines cooperate in innovative ways, and constantly revisit the deployment of resources, people, and technology on tasks based on their viability.</p><p>Interested in learning more about the other pillars of Learning? You can download <a href="https://flevy.com/browse/flevypro/digital-transformation-next-generation-learning-organization-5158"><u>an editable PowerPoint on <strong>Digital Transformation: Next-generation Learning Organization</strong> here</u></a> on the <a href="https://flevy.com/browse">Flevy documents marketplace</a>.</p><h3><strong>Are you a Management Consultant?</strong></h3><p>You can download this and hundreds of other <a href="http://flevy.com/pro/library/frameworks">consulting frameworks</a> and <a href="http://flevy.com/pro/library/consulting">consulting training guides</a> from the <a href="http://flevy.com/pro/library">FlevyPro library</a>.</p></div>The 12 Areas of Post-merger Integration (PMI): Your Guide to Starting PMI the Right Wayhttps://globalriskcommunity.com/profiles/blogs/the-12-areas-of-post-merger-integration-pmi-your-guide-to2020-07-17T08:00:00.000Z2020-07-17T08:00:00.000ZJoseph Robinsonhttps://globalriskcommunity.com/members/JosephRobinson808<div><p></p><p><a href="https://flevy.com/browse/stream/post-merger-integration">Post-merger Integration</a> is a highly complex process. It requires swift action as well as running the core business activities <a href="https://flevy.com/blog/wp-content/uploads/2020/05/pic-1-Post-merger-Integration-PMI-Integration-Checklist-300x200.jpeg" target="_blank"><img src="https://flevy.com/blog/wp-content/uploads/2020/05/pic-1-Post-merger-Integration-PMI-Integration-Checklist-300x200.jpeg?profile=RESIZE_710x" width="300" class="align-right" alt="pic-1-Post-merger-Integration-PMI-Integration-Checklist-300x200.jpeg?profile=RESIZE_710x" /></a>simultaneously. There is no one-size-fits-all approach to a successful PMI Process. However, careful planning focusing on the strategic objectives of the deal and the identification and capturing of synergies will help maximize deal value.</p><p>Because of the complexity of the PMI process, it is of utmost importance that organizations—both the Buyer and Target, the integration team, and integration manager—have a guide that will provide them the detailed requirements of the process. The Post-merger integration framework has a structured approach that can direct attention to important integration areas to maximize deal value and achieve <a href="https://flevy.com/operational-excellence">Operational Excellence</a>. The inability to focus on priority areas can be a waste of resources, time, and investments.</p><h3><strong>The 12 Integration Areas</strong></h3><p>The Post-merger Integration framework drives a structured approach to identify important Integration Areas to focus on during the transition. There are <a href="https://flevy.com/browse/flevypro/post-merger-integration-pmi-integration-checklist-part-1-4159">12 Integration Areas</a> that need to be prioritized.</p><p><a href="https://flevy.com/browse/flevypro/post-merger-integration-pmi-integration-checklist-part-1-4159" target="_blank"><img src="https://flevy.com/blog/wp-content/uploads/2020/05/pic-2-Post-merger-Integration-PMI-Integration-Checklist.png?profile=RESIZE_710x" width="750" class="align-full" alt="pic-2-Post-merger-Integration-PMI-Integration-Checklist.png?profile=RESIZE_710x" /></a></p><p><a href="https://flevy.com/browse/flevypro/post-merger-integration-pmi-integration-checklist-part-1-4159">The first 2 integration areas within the full checklist</a>:</p><ol><li><strong>Finance & Accounting (F&A)</strong>. This is an integration area that is focused on establishing the financial sustainability of the new organization. Financial & Accounting needs clear instructions and templates for financial reporting at Closing. The better the information, the few surprises there are due to poor reporting or absence of data. Financial & Accounting has 9 sub-areas that are essentially important for organizations to have a good appreciation and understanding of.</li></ol><ol start="2"><li><strong>Legal</strong>. The role of the legal function does not end at the Closing. Many legal items need to be listed and considered immediately after the Closing. Special events, such as acquisitions of minority shares or the formation of joint venture companies must be considered. Legal is one vital area in building the sustainability of the new organization.</li></ol><p><a href="https://flevy.com/browse/flevypro/post-merger-integration-pmi-integration-checklist-part-2-4160">The next 2 integration areas within the full checklist</a>:</p><ol start="3"><li><strong>HR & Personnel</strong>. Integral in the Integration Process, HR & Personnel is a key area in integration. Management of the HR Integration Team is a primary responsibility of the Buyer’s HR manager. There are 5 sub-areas under HR & Personnel that must be given important consideration.</li></ol><ol start="4"><li><strong>Corporate Communications</strong>. Successfully using the Buyer’s and Target’s corporate communication functions for announcing and explaining PMI progress is a net sum of many factors. Essentially, communicating PMI progress requires the effective use of the corporate communication functions of both Buyer and Target.</li></ol><p><a href="https://flevy.com/browse/flevypro/post-merger-integration-pmi-integration-checklist-part-3-4161">The third 3 integration areas within the full checklist</a>:</p><ol start="5"><li><strong>Information Technology (IT)</strong>. The goal of the ICT Integration Process is to link the ICT networks of the acquired entity with the Buyer’s corporate ICT network. It is necessary to facilitate access to systems and services provided by the Buyer and collaborate with business/market areas. Often, the integration process is let by an ICT individual from the Buyer’s corporate/company ICT or business/market area ICT.</li></ol><ol start="6"><li><strong>Corporate Culture</strong>. Corporate culture has increasingly become a critical factor in integration success, particularly in cross-border M&A. An M&A deal often impacts on corporate culture, both on the Buyer’s and the Target’s side.</li></ol><ol start="7"><li><strong>Sales & Marketing</strong>. This is a difficult sensitive area to be changed in the integration process. Sales & Marketing contribute largely to organizational financial stability, hence primary consideration must be undertaken.</li></ol><p><a href="https://flevy.com/browse/flevypro/post-merger-integration-pmi-integration-checklist-part-4-4162">The last 5 PMI integration areas within the full checklist</a>:</p><ol start="8"><li><strong>After Sales & Service</strong>. This is increasingly becoming important in value creation. It is an added-value that strengthens Sales & Marketing capability to sustain the market.</li></ol><ol start="9"><li><strong>Supply Chain Management (SCM)</strong>. This is undertaken at a later phase of integration as the fundamental change requires detailed planning and calculation.</li></ol><ol start="10"><li><strong>Production</strong>. This is one critical area where more experience and planning are required in decision making.</li></ol><ol start="11"><li><strong>Technology</strong>. The extent to which the integration focuses on Technology and R&D depends on the M&A strategy. If the purpose of the acquisition is to gain technology or strengthen existing capabilities, then this is when the integration will focus on technology.</li></ol><ol start="12"><li> <strong>Synergies</strong>. This an integration area that can mean new strengths and opportunities from combined knowledge and experiences.</li></ol><p>Organizations must take adept steps in undertaking the Integration Checklist as this will enable both the Buyer and the Target to reach the most strategic state necessary for the 12 Integration Areas.</p><p>Interested in gaining more understanding of the <a href="https://flevy.com/browse/flevypro/post-merger-integration-pmi-integration-checklist-part-1-4159">Post-merger Integration (PMI) Integration Checklist</a>? You can learn more and download an <a href="https://flevy.com/browse/stream/post-merger-integration">editable PowerPoint about <strong>Post-merger Integration (PMI) Integration Checklist</strong> here</a> on the <a href="https://flevy.com/browse">Flevy documents marketplace</a>.</p><p><strong>Are you a management consultant?</strong></p><p>You can download this and hundreds of other <a href="http://flevy.com/pro/library/frameworks">consulting frameworks</a> and <a href="http://flevy.com/pro/library/consulting">consulting training guides</a> from the <a href="http://flevy.com/pro/library">FlevyPro library</a>.</p></div>Taking a Strategic Move to Post-merger Integration (PMI): Financial Integrationhttps://globalriskcommunity.com/profiles/blogs/taking-a-strategic-move-to-post-merger-integration-pmi-financial2020-07-11T06:30:06.000Z2020-07-11T06:30:06.000ZJoseph Robinsonhttps://globalriskcommunity.com/members/JosephRobinson808<div><p></p><p>Our framework <a href="https://flevy.com/browse/flevypro/post-merger-integration-pmi-financial-integration-4049">Post-merger Integration (PMI): Financial integration</a> is every organization’s guide to achieving the financial alignment of both Buyer<a href="https://flevy.com/blog/wp-content/uploads/2020/03/pic-1-Financial-Integration-300x200.jpg" target="_blank"><img src="https://flevy.com/blog/wp-content/uploads/2020/03/pic-1-Financial-Integration-300x200.jpg?profile=RESIZE_710x" width="300" class="align-right" alt="pic-1-Financial-Integration-300x200.jpg?profile=RESIZE_710x" /></a> and Target.</p><p><a href="https://flevy.com/browse/stream/post-merger-integration">Post-merger Integration</a> is a highly complex process. It requires swift action as well as running the core business activities simultaneously. There is no one-size-fits-all approach to a successful PMI Process. However, careful planning focusing on the strategic objectives of the deal and the identification and capturing of synergies will help maximize deal value.</p><p>Another critical factor in PMI is pursuing Financial Integration. Financial Integration is the alignment of the finance functions of the Buyer and Target.</p><h3><strong>Why Financial Integration?</strong></h3><p>Immediately from the start of the deal, the new organization gets to be dependent on the Finance function to ensure a successful integration process. Synergies must be captured in order to maximize deal value and provide combined organizations with the flexibility to grow.</p><p>When pursuing Financial Integration, there must be an integration of business operations, streamlining of the internal control environment, provision of accurate and consistent financial reporting, ensuring tax compliance jurisdictions if the deal is cross-border, and the founding of interim legal structure and business processes. When setting the right direction for a streamlined finance function, it is important that the organizations must already tackle critical matters while still in the early stages of a deal.</p><p>The establishment of clear reporting lines must already be agreed upon and set up. Accountability for financial operations, management reporting, control of expenses, and accounting closing procedures must already be established and clear between the Buyer and the Target. These play a vital role when the organization undertakes a <a href="https://flevy.com/strategic-planning">Strategic Planning</a> geared towards the development of a Financial Integration Strategy and Plan.</p><h3><strong>The Financial Integration Strategy: What We Need to Know</strong></h3><p>The Financial Integration Strategy can only be defined and crafted only when immediate areas that require action have already been identified. The Strategy must be developed based on <a href="https://flevy.com/browse/flevypro/post-merger-integration-pmi-financial-integration-4049">8 key areas of focus</a>.</p><p><a href="https://flevy.com/browse/flevypro/post-merger-integration-pmi-financial-integration-4049" target="_blank"><img src="https://flevy.com/blog/wp-content/uploads/2020/03/pic-2-Financial-Integration.png?profile=RESIZE_710x" width="750" class="align-full" alt="pic-2-Financial-Integration.png?profile=RESIZE_710x" /></a></p><ol><li><strong>Overall Organization</strong>. As the first key area, this focuses on the overall set up of the Financial Integration processes. This starts with establishing the reporting lines from <a href="https://flevy.com/browse/flevypro/post-merger-integration-pmi-day-one-activities-4046">Day One of the PMI process</a>. This also includes the establishment of a transition plan that is aligned with the process and systems migration plan.</li></ol><ol start="2"><li><strong> Internal Controls Environment</strong>. Once the overall organization has been set up, it is important that the internal controls environment is established. This will entail setting up the control procedure from Day One. It is of importance that the controls environment is established since this will mitigate risks and ensure regulatory compliance.</li></ol><ol start="3"><li><strong>Cash/Treasury</strong>. This is the third key area that looks into the cash position of the organization. It is at this point wherein the organization must be able to plan out its cash flow requirements and be able to gain assurance over adequate funding. This key area is very critical when it comes to the financial sustainability of the organization as it ensures that treasury policies are aligned, cash controls are established, cash forecasting and cash management have commenced, and there is an alignment of investments, foreign currency, and any hedging arrangements.</li></ol><p>Aside from the 3 focus areas, the development of the <a href="https://flevy.com/browse/flevypro/post-merger-integration-pmi-financial-integration-4049">PMI Financial Integration Strategic Plan</a> must also give serious consideration on Financial Statements, Procurement, Financial Planning, Cash Controls, and Tax. These 5 focus areas are essentially important as it ensures that Financial Integration essentials are met.</p><p>When this is achieved and the 8 key areas of focus are integrated into the Financial Integration Plan, the new organization gets to prepare itself towards a larger scale <a href="https://flevy.com/browse/stream/transformation">Business Transformation</a> in the future.</p><p>Interested in gaining more understanding of the <a href="https://flevy.com/browse/stream/post-merger-integration">Financial Integration component of PMI</a>? You can learn more and download an <a href="https://flevy.com/browse/flevypro/post-merger-integration-pmi-financial-integration-4049">editable PowerPoint about <strong>Post-merger (PMI): Financial Integration</strong> here</a> on the <a href="https://flevy.com/browse">Flevy documents marketplace</a>.</p><p><strong>Are you a management consultant?</strong></p><p>You can download this and hundreds of other <a href="https://flevy.com/pro/library/frameworks">consulting frameworks</a> and <a href="https://flevy.com/pro/library/consulting">consulting training guides</a> from the <a href="https://flevy.com/pro/library">FlevyPro library</a>.</p></div>The Key to Maximizing Deal Value: Post-merger Integration (PMI) Roles & Responsibilitieshttps://globalriskcommunity.com/profiles/blogs/the-key-to-maximizing-deal-value-post-merger-integration-pmi2020-07-08T07:30:00.000Z2020-07-08T07:30:00.000ZJoseph Robinsonhttps://globalriskcommunity.com/members/JosephRobinson808<div><p></p><p>For <a href="https://flevy.com/browse/stream/post-merger-integration">Post-merger Integration (PMI)</a> to be successful, it is critical that we have clearly defined, appropriate, and comprehensive roles and responsibilities.</p><p><a href="https://flevy.com/blog/wp-content/uploads/2020/03/pic-1-Roles-Responsibilities-300x198.jpeg" target="_blank"><img src="https://flevy.com/blog/wp-content/uploads/2020/03/pic-1-Roles-Responsibilities-300x198.jpeg?profile=RESIZE_710x" width="300" class="align-right" alt="pic-1-Roles-Responsibilities-300x198.jpeg?profile=RESIZE_710x" /></a></p><p>Post-merger Integration is a highly complex process. It requires swift action as well as running the core business activities simultaneously. There is no one-size-fits-all approach to a successful PMI Process. However, careful planning focusing on the strategic objectives of the deal and the identification and capturing of synergies will help maximize deal value.</p><p>While it may be a highly complex project, a successful PMI may be achieved and greater deal value can be expected. Right from <a href="https://flevy.com/browse/flevypro/post-merger-integration-pmi-day-one-activities-4046">Day One of PMI</a>, it is already important that the Buyer and Target have the right people in place. The success of the integration project depends on leadership, project management capabilities, and selection of the right personnel to the work in teams/streams.</p><h3><strong>Roles & Responsibilities in PMI: Why the Need for Emphasis</strong></h3><p>So, what are the requisite <a href="https://flevy.com/browse/flevypro/post-merger-integration-pmi-roles-and-responsibilities-4061">PMI roles and responsibilities</a>? Clearly defined roles and responsibilities are a fundamental factor that can make a big difference between gaining deal success or failure.</p><p><a href="https://flevy.com/browse/flevypro/post-merger-integration-pmi-roles-and-responsibilities-4061" target="_blank"><img src="https://flevy.com/blog/wp-content/uploads/2020/03/pic-2-Roles-and-Responsibilities.png?profile=RESIZE_710x" width="750" class="align-full" alt="pic-2-Roles-and-Responsibilities.png?profile=RESIZE_710x" /></a></p><p>The Integration owner, together with the <a href="https://flevy.com/browse/flevypro/post-merger-integration-pmi-roles-and-responsibilities-4061">Integration Steering Group</a> plays a critical role in defining the integration path of the organization. In <a href="https://flevy.com/browse/stream/leadership">Leadership Development</a>, their role in the First 100 Days is a fundamental factor in achieving success or failure.</p><ol><li><strong>Integration Owner</strong>. The Integration Owner is a member of the Buyer’s management team. He/she is basically the owner of the integration phase. It is the responsibility of the Integration Owner to oversee the integration phase, as well as the transaction/purchase phase.</li></ol><ol start="2"><li><strong>Integration Steering Group</strong>. The Integration Steering Group is the governing body of the integration phase. The specific role of the Integration Steering Group is to supervise the work of the Integration Project Manager and the Integration Team.</li></ol><ol start="3"><li><strong>Integration Manager</strong>. The Integration Manager is the Project Manager. He/she is the one in charge of the day-to-day management of the integration. If the Integration Manager has little or no project management experience then active hands-on support is required from the M&A Project owner.</li></ol><ol start="4"><li><strong>Integration Team/Stream</strong>. The Integration Team/Stream consists of an Integration Manager and its members. Streams are areas of the organization split into district parts but which are aligned to the overall strategy. Integration streams are often decided after the first appointment of the Integration Manager. Each stream is often headed by the Integration Stream Manager.</li></ol><h3><strong>The Critical Role of the Integration Stream Manager</strong></h3><p>The <a href="https://flevy.com/browse/flevypro/post-merger-integration-pmi-roles-and-responsibilities-4061">Integration Stream Managers</a> are selected from among the Buyer’s managers. They play a vital role as they are responsible for the development and implementation of detailed plans.</p><p>The Integration Stream Managers act as the team builder and introduce the team members to each other. They ensure that the team members have all the information and tools needed for the task. They clarify goals, targets, timetables, reporting, and other important matters relative to the integration. As Integration Stream Managers, they are expected to ensure that everyone in the team understands the goals the same way and is committed to making it happen.</p><p>In certain circumstances, it is possible that the Integration Stream Manager may also be Target’s manager. This happens when Target’s manager has specialized knowledge or attributes necessary for the integration.</p><p>Undertaking the Post-merger Integration Process the right way can maximize deal value. On the other hand, it can result in the greatest potential loss of value when not done right. Being able to select the right people is the key.</p><p>Interested in gaining more understanding of the various <a href="https://flevy.com/browse/flevypro/post-merger-integration-pmi-roles-and-responsibilities-4061">Roles and Responsibilities within PMI</a>? You can learn more and download an <a href="https://flevy.com/browse/flevypro/post-merger-integration-pmi-roles-and-responsibilities-4061">editable PowerPoint about <strong>Post-merger Integration (PMI): Roles & Responsibilities</strong> here</a> on the <a href="https://flevy.com/browse">Flevy documents marketplace</a>.</p><p><strong>Are you a management consultant?</strong></p><p>You can download this and hundreds of other <a href="https://flevy.com/pro/library/frameworks">consulting frameworks</a> and <a href="https://flevy.com/pro/library/consulting">consulting training guides</a> from the <a href="https://flevy.com/pro/library">FlevyPro library</a>.</p></div>How to Maximize Deal Value in Post-merger Integration (PMI): The PMI Processhttps://globalriskcommunity.com/profiles/blogs/how-to-maximize-deal-value-in-post-merger-integration-pmi-the-pmi2020-07-04T06:19:02.000Z2020-07-04T06:19:02.000ZJoseph Robinsonhttps://globalriskcommunity.com/members/JosephRobinson808<div><p></p><p><a href="https://flevy.com/browse/stream/post-merger-integration">Post-merger Integration (PMI)</a> can be complex, time-pressured, and unfamiliar for most organizations. It is a highly <a href="{{#staticFileLink}}8028327472,original{{/staticFileLink}}" target="_blank"><img src="{{#staticFileLink}}8028327472,original{{/staticFileLink}}" width="200" class="align-right" alt="8028327472?profile=original" /></a>complex process. It requires swift action as well as running the core business activities simultaneously. There is no one-size-fits-all approach to a successful <a href="https://flevy.com/browse/flevypro/post-merger-integration-pmi-pmi-process-4062">PMI Process</a>. However, careful planning focusing on the strategic objectives of the deal and the identification and capturing of synergies will help maximize deal value.</p><p>It is inevitable that some elements of information will be withheld from a Buyer pre-deal. Further, not all the synergy benefits originally identified in the deal will prove to be achievable. The foremost challenge for management at the onset of the PMI process is to identify how value can be captured from the newly combined organization via synergies and cost savings.</p><p>Hence, undertaking the PMI Process requires a clear roadmap that will take the post-merger integration journey toward a more strategic and effective direction. This is where <a href="https://flevy.com/browse/stream/strategy-development">Strategy Development</a> comes in.</p><h3><strong>The 5 Core Components of the PMI Process</strong></h3><p>Organizations must have a good understanding of the integration process to ensure that target results are achieved and that expectations are met. There are <a href="https://flevy.com/browse/flevypro/post-merger-integration-pmi-pmi-process-4062">5 core components of the PMI Process</a> organizations must follow to make the process more successful where the deal value is achieved and realized.</p><p><a href="https://flevy.com/browse/flevypro/post-merger-integration-pmi-pmi-process-4062" target="_blank"><img src="https://flevy.com/blog/wp-content/uploads/2020/03/pic-2-PMI-process.png?profile=RESIZE_710x" width="750" class="align-full" alt="pic-2-PMI-process.png?profile=RESIZE_710x" /></a></p><ol><li><strong>PMI Structure</strong>. This is the first component of the PMI Process that establishes the stages of the integration process. It consists of sub-projects that take place before and after the closing or change of ownership.</li></ol><ol start="2"><li><strong>Management Alignment</strong>. The second core component, Management Alignment is focused on aligning top managers of both Buyer and Target. For the first time, top managers of the Buyer and Target become part of the same organization. It is at this stage wherein there is a change of priorities and commitment of top managers. The new management team must be aligned and committed to the same goal. This way, they convey the same message to the new organization.</li></ol><ol start="3"><li><strong>First 100 Days</strong>. The First 100 Days is where the PMI Process starts focusing on making changes. The First 100 Days is the maximum period people can live with the uncertainty regarding the new organizational structure and decision on redundancy. This core component is highly critical as this paves the way towards a smooth transition to a new organization.</li></ol><ol start="4"><li><strong>PMI Project Management</strong>. The fourth component is focused on budget planning and management. It is at this stage wherein the preparation of the first estimates of integration costs during the transaction or purchase phase is undertaken.</li></ol><ol start="5"><li><strong>Kick-off Meeting</strong>. The fifth or final core component is the Kick-off Meeting. Starting teamwork is its main focus. Participants are brought up to speed on events in both predecessor entities and the joint strategy. This is the avenue to provide instructions, guidelines, and templates. A Kick-off Meeting is typically a 2-day session including the time to socialize.</li></ol><h3><strong>The Red Flag Warning in Post-merger Integration</strong></h3><p>When going through Post-merger Integration, we can expect some red flag warnings. These are disturbances that may warrant such a red flag warning. As organizations go through the deal, there will be critical issues on personnel and customers that will arise.</p><p>One critical issue that may raise the concern of the Integration team is the possibility of losing your key personnel. Losing your key personnel can cause a dent in any organization. At this point wherein integration is happening, the more the support of the key personnel is of utmost importance. Losing them would be a great loss.</p><p>Aside from red flag warnings, there will also be key considerations organizations must take note of during integration. Being aware of these will prepare them as they move on forwards to achieving a successful deal.</p><p>Interested in gaining more understanding of the <a href="https://flevy.com/browse/flevypro/post-merger-integration-pmi-pmi-process-4062">PMI Process</a>? You can learn more and download an <a href="https://flevy.com/browse/flevypro/post-merger-integration-pmi-pmi-process-4062">editable PowerPoint about <strong>Post-merger Integration (PMI): PMI Process</strong> here</a> on the <a href="https://flevy.com/browse">Flevy documents marketplace</a>.</p><p><strong>Are you a management consultant?</strong></p><p>You can download this and hundreds of other <a href="https://flevy.com/pro/library/frameworks">consulting frameworks</a> and <a href="https://flevy.com/pro/library/consulting">consulting training guides</a> from the <a href="https://flevy.com/pro/library">FlevyPro library</a>.</p></div>Achieving Success in Post-merger Integration (PMI): The Top 10 Tips Every Organization Must Knowhttps://globalriskcommunity.com/profiles/blogs/achieving-success-in-post-merger-integration-pmi-the-top-10-tips2020-06-30T07:00:00.000Z2020-06-30T07:00:00.000ZJoseph Robinsonhttps://globalriskcommunity.com/members/JosephRobinson808<div><p></p><p>When organizations go through a <a href="https://flevy.com/browse/flevypro/post-merger-integration-pmi-tips-for-success-4068">Post-merger Integration</a>, often management realizes that it is never a simple undertaking. It is a <a href="https://flevy.com/blog/wp-content/uploads/2020/03/pic-1-Tips-for-success-300x260.jpeg" target="_blank"><img src="https://flevy.com/blog/wp-content/uploads/2020/03/pic-1-Tips-for-success-300x260.jpeg?profile=RESIZE_710x" width="300" class="align-right" alt="pic-1-Tips-for-success-300x260.jpeg?profile=RESIZE_710x" /></a>highly complex process. Swift action is required as well as being able to run the core business activities simultaneously. There is no one-size-fits-all approach to a successful PMI Process. However, to maximize deal value, there is a need for careful planning focused on the strategic objectives of the deal and the identification and capturing of synergies.</p><p>The PMI Process requires a <a href="https://flevy.com/browse/stream/strategy-development">Strategy Development</a> approach geared towards unifying 2 organizations into one new organization with a common culture, equipped with the right people and good leadership in place. It is a challenging journey where organizations, both the Buyer and the Target, must take on the appropriate approach to be able to start off the process and close the deal with the expected results in place.</p><p>New organizations often benchmark Post-merger Integration Process leaders to guide them through the process. By following best practices, new organizations will have a better understanding of how to approach the PMI process in a more strategic manner.</p><h3><strong>Achieving PMI Success: The Top 10 Tips</strong></h3><p>There are <a href="https://flevy.com/browse/flevypro/post-merger-integration-pmi-tips-for-success-4068">top 10 tips</a> that can help organizations conquer what could be a complex integration process. Following the top 10 tips will enable organizations to successfully traverse through the process.</p><p><a href="https://flevy.com/browse/flevypro/post-merger-integration-pmi-tips-for-success-4068" target="_blank"><img src="https://flevy.com/blog/wp-content/uploads/2020/03/pic-2-10-Tips-to-PMI-Success.png?profile=RESIZE_710x" width="700" class="align-full" alt="pic-2-10-Tips-to-PMI-Success.png?profile=RESIZE_710x" /></a></p><p>Let us discuss here 4 of the top 10 tips to achieve PMI success.</p><ol><li><strong>Focus on Key Sources of Value</strong>. In focusing on key sources of value, we need to be able to communicate how the value of the deal will be captured. Success organizations often structure integration teams based on key sources of value. They make teams understand the value for which they are accountable and how this will be unlocked via the PMI process.</li><li><strong>Clearly Define Nature of the Deal</strong>. Often successful integrations are achieved when the nature of the deal is clear. Organizations need to be able to determine what is to be integrated and what is to remain as stand-alone. They need to have a good idea of what the adopted culture will be and which people are to be retained. This way, organizations can easily jumpstart the PMI process in the right direction.</li><li><strong>Have the Right People in Placed</strong>. Needless delays in the implementation of the PMI process can exacerbate anxieties amongst staff. This can cause speculative conversations or result in staff insecurities. To address, organizations focus on the immediate mobilization of the integration process. One way of doing this is having the right people in placed. Selecting people who are enthusiastic about the new vision and are happy to contribute it will facilitate a good start for the integration process. However, there is a need to maintain balance. People from both the Buyer and Target must be selected and appointed.</li><li><strong>Get the Buyer up-to-speed</strong>. This is one important tip that will jumpstart the process. Get the Buyer up-to-speed. This can be done by encouraging the Buyer to begin planning the integration process even before the deal is announced. It is of great advantage if the Buyer will identify everything that must be done prior to closing. Active participation of the buyer is essential to keep the PMI process on high gear.</li></ol><p>Aside from the 4 top tips, the other 6 top tips are equally effective in guiding organizations to achieve deal maximization. These top 10 tips can be of great help to organizations when faced with challenging obstacles as they go through the process of integration. The <a href="https://flevy.com/browse/flevypro/post-merger-integration-pmi-tips-for-success-4068">PMI Process</a> is a very complex undertaking but it can be achieved and be conquered with just the right approach and guide.</p><p>Interested in gaining more understanding of <a href="https://flevy.com/browse/flevypro/post-merger-integration-pmi-tips-for-success-4068">Post-merger Integration (PMI): Tips for Success</a>? You can learn more and download an <a href="https://flevy.com/browse/flevypro/post-merger-integration-pmi-tips-for-success-4068">editable PowerPoint about Post-merger Integration (PMI): Tips for Success here</a> on the <a href="https://flevy.com/browse">Flevy documents marketplace</a>.</p><p><strong>Are you a management consultant?</strong></p><p>You can download this and hundreds of other <a href="https://flevy.com/pro/library/frameworks">consulting frameworks</a> and <a href="https://flevy.com/pro/library/consulting">consulting training guides</a> from the <a href="https://flevy.com/pro/library">FlevyPro library</a>.</p></div>Starting PMI Right: Post-merger Integration (PMI): Day One Activitieshttps://globalriskcommunity.com/profiles/blogs/starting-pmi-right-post-merger-integration-pmi-day-one-activities2020-04-03T06:00:00.000Z2020-04-03T06:00:00.000ZJoseph Robinsonhttps://globalriskcommunity.com/members/JosephRobinson808<div><p>Post-merger Integration is a highly complex process. It requires swift action as well as running the core business activities <a href="http://flevy.com/blog/wp-content/uploads/2020/02/pic-1-PMI-Day-One-Activities-300x199.jpg" target="_blank"><img src="http://flevy.com/blog/wp-content/uploads/2020/02/pic-1-PMI-Day-One-Activities-300x199.jpg?profile=RESIZE_710x" width="300" class="align-right" alt="pic-1-PMI-Day-One-Activities-300x199.jpg?profile=RESIZE_710x" /></a>simultaneously. There is no one-size-fits-all approach to a successful PMI Process. However, careful planning focusing on the strategic objectives of the deal and the identification and capturing of synergies will help maximize deal value.</p><p>It is inevitable that some elements of information will be withheld from a Buyer pre-deal. Further, not all the synergy benefits originally identified in the deal will prove to be achievable. The foremost challenge for management at the onset of the PMI process is to identify how value can be captured from the newly combined organization via synergies and cost savings.</p><h3><strong>Understanding Post-merger Integration</strong></h3><p><a href="https://flevy.com/browse/stream/post-merger-integration">Post-merger Integration</a> is the fundamental stage of realizing the value of an M&A deal. A highly complex process, it entails bringing together 2 companies experiencing change while ensuring that business continues as usual. A truly challenging undertaking that must never be underestimated.</p><p>When 2 companies agree to undertake a Post-merger Integration, its primary objective is to maximize synergies to ensure that the deal lives up to its predicted value. It is a phase during which the results of the Buyer’s M&A strategy and expectations for the closed deal start to materialize.</p><p>In the entire phase, Closing and Day One of change is the most critical. It is the initial starting point towards the change of ownership and where <a href="https://flevy.com/browse/stream/strategy-development">Strategy Development</a> is at its core.</p><h3><strong>Closing and Day One</strong></h3><p>During <a href="https://flevy.com/browse/flevypro/post-merger-integration-pmi-day-one-activities-4046">Closing and Day One</a>, Managers must focus on 3 important areas.</p><p><a href="https://flevy.com/browse/flevypro/post-merger-integration-pmi-day-one-activities-4046" target="_blank"><img src="http://flevy.com/blog/wp-content/uploads/2020/02/pic-2-PMI-Day-One-Activities.png?profile=RESIZE_710x" width="750" class="align-full" alt="pic-2-PMI-Day-One-Activities.png?profile=RESIZE_710x" /></a></p><ol><li><strong>Communications</strong>. Corporate Communications must be well planned and well implemented. This is to enable managers to lead an M&A project more effectively. Through <a href="https://flevy.com/business-toolkit/structured-communication">structured communication</a>, trust is built, motivation developed, and important information shared. In fact, it can prevent the negative impact of rumors and unify the different parts of the joint company.</li></ol><ol start="2"><li><strong>Operating Structure</strong>. New operating structures and systems are made once the joint company’s strategy and goals have been agreed upon. From Day One, it is important that new management and operational structure/reporting procedures are clearly communicated. In the development of the operating structure, it is important that a CEO has been appointed, the key personnel roles decided, and there is already an agreement on operative and statutory structures.</li></ol><ol start="3"><li><strong>Systems & Controls</strong>. A clear and detailed Systems & Controls must be established by Day One. This is essential for management to be able to gain control of the operations of the Target. If operational structures are not finalized at this point, a temporary management system and control need to be established.</li></ol><h3><strong>The Important Role of a CEO and Key Personnel from Day One</strong></h3><p>The CEO plays a vital role in the joint business. The CEO or Managing Director is involved in the acquisition process. Hence, it is important that from Day One, a CEO or Managing Director has already been appointed.</p><p>Often the CEO comes from the Buyer or its group or corporate entity. If an existing CEO of the acquired entity continues the same role, then the Buyer must nominate a controller to ensure financial integration and smooth reporting.</p><p>The Key Personnel is also essentially important from Day One. In fact, there is a need for positions and roles of key personnel during the integration process to be planned in advance and communicated at closing.</p><p>Interested in gaining more understanding of <a href="https://flevy.com/browse/flevypro/post-merger-integration-pmi-day-one-activities-4046">PMI Day One Activities</a>? You can learn more and download an <a href="https://flevy.com/browse/flevypro/matrix-organization-primer-3469">editable PowerPoint about</a> <a href="https://flevy.com/browse/flevypro/post-merger-integration-pmi-day-one-activities-4046"><strong>Post-merger Integration (PMI): Day One Activities</strong> here</a> on the <a href="https://flevy.com/browse">Flevy documents marketplace</a>.</p><p><strong>Are you a management consultant?</strong></p><p>You can download this and hundreds of other <a href="http://flevy.com/pro/library/frameworks">consulting frameworks</a> and <a href="http://flevy.com/pro/library/consulting">consulting training guides</a> from the <a href="http://flevy.com/pro/library">FlevyPro library</a>.</p></div>Modernize Your Board’s Role in M&A and Achieve the Greatest Dealshttps://globalriskcommunity.com/profiles/blogs/modernize-your-board-s-role-in-m-amp-a-and-achieve-the-greatest2020-03-11T06:00:00.000Z2020-03-11T06:00:00.000ZJoseph Robinsonhttps://globalriskcommunity.com/members/JosephRobinson808<div><p>Many large corporations depend on <a href="https://flevy.com/business-toolkit/manda-mergers-and-acquisitions-ma">M&A</a> for growth and executives can boost the value that deals create. But poorly executed M&A<a href="http://flevy.com/blog/wp-content/uploads/2019/12/pic-2-Board-Excellence-MA-300x208.jpeg" target="_blank"><img src="http://flevy.com/blog/wp-content/uploads/2019/12/pic-2-Board-Excellence-MA-300x208.jpeg?profile=RESIZE_710x" width="300" class="align-right" alt="pic-2-Board-Excellence-MA-300x208.jpeg?profile=RESIZE_710x" /></a> can saddle investors with weak returns on capital for details. In fact, the margin between success and failure is slim.</p><p>Many Boards are reluctant to cross the line between governance and management. The level of engagement is often outside the comfort zone for some executives and directors. As such, they miss opportunities to help senior executives win at M&A.</p><p>There is a need to modernize the Board’s role in M&A. <a href="https://flevy.com/browse/flevypro/board-excellence-manda-3988">Modernizing the role of the Board in M&A</a> can result in the alignment of the Board and management on the need for bolder transactions with more upside potential. Further, this is essential in achieving a competitive advantage.</p><h3>The 3 Core Opportunities in M&A</h3><p>There are 3 core opportunities for the Board to play an impactful role in M&A.</p><p><a href="https://flevy.com/browse/flevypro/board-excellence-manda-3988" target="_blank"><img src="http://flevy.com/blog/wp-content/uploads/2019/12/Pic-1-Board-Excellence-MA-1024x768.png?profile=RESIZE_710x" width="750" class="align-full" alt="Pic-1-Board-Excellence-MA-1024x768.png?profile=RESIZE_710x" /></a></p><ol><li><strong>Potential for Value Creation</strong>. The first core opportunity, potential for <a href="https://flevy.com/business-toolkit/value-creation">Value Creation</a> enables the Board to challenge the executive’s thinking on potential transactions. This is an opportunity for the Board to maintain constant touch with the company’s M&A strategy, the pipeline of potential targets, and emerging deals.</li></ol><ol start="2"><li><strong>PMI Plans</strong>. This is an essential core opportunity that enables the Board to boost value creation to as much as 2-3x the net value. <a href="https://flevy.com/business-toolkit/pmi-post-merger-integration-pmi">Post-merger Integration (PMI) Plans</a> representat an opportunity to pressure test against stretch growth and cost goals before and after a deal. Greater variation in the quality of post-merger plans exist compared to financial analysis and pricing of transactions.</li></ol><ol start="3"><li><strong>Competitive Advantage in M&A</strong>. <a href="https://flevy.com/business-toolkit/competitive-advantage">Competitive Advantage</a> is a core opportunity that is unrelated to a transaction’s deadline. This is an opportunity to create a competitive advantage through M&A skills. These are corporate assets that can be difficult to copy. Making that decision to create a competitive advantage through M&A can lead to bolder decisions with more upside results.</li></ol><p>The 3 core opportunities can promote greater Board engagement. When this happens, discrete deals can be converted into ongoing deal processes and dialogues that can deliver greater value from M&A.</p><h3>Maximizing Core Opportunities to Attain the Greatest Deal</h3><p>The potential of the 3 Core Opportunities to embolden the role of the Board in M&A is great. Organizations just need to have a good understanding of each core opportunity and the underlying key areas or dimensions of each key area. Let us take a look at the 1st Core Opportunity: Potential for Value Creation.</p><p>The Potential for Value Creation has 3 critical key areas that can challenge that lead opportunistic transaction to succeed. One critical key area is Strategic Fit.</p><p>Strategic Fit is key to determining why a company is a better owner than competing buyers. Deals driven by strategy succeed more often when they are part of a stream of similar transactions that support that strategy. This is a key element in <a href="https://flevy.com/browse/stream/strategy-development">Strategy Development</a>.</p><p><em><strong>How can we enhance the role of the Board relative to this key area?</strong></em> The Board can play a vital role in clarifying the relationship between a potential transaction and <a href="https://flevy.com/strategic-planning">strategic planning</a>. They are also in the best position to define how the deal will support organic-growth efforts in target markets and provide complementary sources of value creation.</p><p>The other key areas under the Potential for Value Creation are <a href="https://www.investopedia.com/terms/f/financial-statements.asp">Financial Statements</a> and Risks vs. Rewards. The Financial Statements is a key area that can correct the Board’s tendency to put emphasis on price-to-earnings multiples which can be limiting. The Risks vs. Rewards, on the other hand, is a key area that challenges the Board to acknowledge uncertainties in pro forma.</p><p>The other 2 Core Opportunities also have their own essential points or dimensions the Board must focus on. Only then can these core opportunities be of the maximum potential of modernizing the Board’s role in M&A and gaining the greatest value.</p><p>Interested in gaining more understanding of achieving <a href="https://flevy.com/browse/flevypro/board-excellence-manda-3988">Board Excellence through M&A</a>? You can learn more and download an <a href="https://flevy.com/browse/flevypro/board-excellence-manda-3988">editable PowerPoint about <strong>Board Excellence: M&A</strong> here</a> on the <a href="https://flevy.com/browse">Flevy documents marketplace</a>.</p><p><strong>Are you a management consultant?</strong></p><p>You can download this and hundreds of other <a href="http://flevy.com/pro/library/frameworks">consulting frameworks</a> and <a href="http://flevy.com/pro/library/consulting">consulting training guides</a> from the <a href="http://flevy.com/pro/library">FlevyPro library</a>.</p></div>How to Secure the Promised Revenue Synergies After Signing a Merger Deal?https://globalriskcommunity.com/profiles/blogs/how-to-secure-the-promised-revenue-synergies-after-signing-a2019-10-02T10:30:00.000Z2019-10-02T10:30:00.000ZMark Bridgeshttps://globalriskcommunity.com/members/MarkBridges<div><p><img src="{{#staticFileLink}}8028304271,original{{/staticFileLink}}" alt="8028304271?profile=original" width="595" /></p><p>Stiff market competition, expansion into new territories, product portfolio extension, and gaining new capabilities are the prime reasons why more and more organizations are seriously looking into the prospects of—and carrying out—Mergers and Acquisitions. However, only a few M&As achieve their desired revenue objectives.</p><p>Revenue Synergies are a decisive factor in closing such deals. However, identifying precisely where these Revenue Synergies lie and then capturing them isn’t as easy as it sounds.</p><p>A <a href="https://www.mckinsey.com/mgi/our-research" target="_blank">McKinsey study</a> comprising of 200 M&A executives from 10 different sectors revealed that all the respective organizations of the respondents remained short of achieving their Revenue Synergy targets (~23% short of the target on average). <a href="https://flevy.com/browse/flevypro/post-merger-integration-pmi-revenue-synergies-3953" target="_blank">Securing Revenue Synergies</a> is a long-term game. The companies that succeed in securing Revenue Synergies achieve the target in or around 5 years.</p><p>Leaders aspiring to achieve Revenue Synergies should first clarify the objectives from and the schedule of the revenue synergies, lay out the organizational priorities and go-to-market strategies, remove obstacles from realizing value, and gain across the board readiness and commitment for the initiative. Organizations that are most successful in securing revenue synergies pay close attention to these 7 guiding principles during the Post-merger Integration process:</p><ol><li><strong>Source of Synergies</strong></li><li><strong>Leadership Ownership</strong></li><li><strong>Customer Insight-driven Opportunities</strong></li><li><strong>Salesperson Driven Strategy</strong></li><li><strong>Ambitious Targets and Incentives</strong></li><li><strong>Sufficient Support</strong></li><li><strong>Performance Management</strong></li></ol><div class="slate-resizable-image-embed slate-image-embed__resize-full-width"><a href="http://flevy.com/browse/flevypro/post-merger-integration-pmi-revenue-synergies-3953" target="_blank"><img src="https://media.licdn.com/dms/image/C4E12AQF9UUSxPmvg5Q/article-inline_image-shrink_1500_2232/0?e=1575504000&v=beta&t=kbTupkQzdZpc6iH1IreOUJEpmBa94C5ZPG5J7Apjb64" alt="No alt text provided for this image" /></a></div><p>These <a href="https://flevy.com/browse/flevypro/post-merger-integration-pmi-revenue-synergies-3953" target="_blank">7 guiding principles to capturing Revenue Synergies</a> are critical for effective integration of two firms after a merger and unlocking potential benefits from the deal. Let’s discuss the first 3 principles in detail now.</p><h3><strong>1. Source of Synergies</strong></h3><p>The inability of the leadership of the acquiring company to spot major sources of revenue that integration brings in results in losing significant pools of opportunity and failure of M&As. Realizing Revenue Synergies demands a thorough methodology to ascertain and qualify revenue prospects along markets and channels, Go-to-Market Strategies, and developing commercial capabilities. This entails:</p><ul><li>Evaluating customers and markets, selling offerings of the combined firms utilizing existing and additional channels, and adequately training and rewarding the sales teams.</li><li>Coming up with innovative new products and bundles utilizing combined R&D capabilities.</li><li>Sharing best practices and commercial capabilities that mergers offer.</li></ul><h3><strong>2. Leadership Ownership</strong></h3><p>Organizations that accomplish their Revenue Synergy objectives guarantee that their top management and employees commit themselves fully to the initiative from the onset. They identify potential value pockets from the integration, examine the assumptions about securing value, and get them endorsed by the senior management and front-line staff. The potential Revenue Strategies are regularly evaluated by inter-departmental experts.</p><h3><strong>3. Customer Insight-driven Opportunities</strong></h3><p>Accurate estimation of Revenue Synergies demands top-level estimates—assumptions on market share gain, revenue enhancement, or improved penetration—alongside comprehensive bottom-up customer insights, and evaluation of customer relationships. Other important elements to consider include analyzing the offerings being offered to customers, discerning other potential products and services required by the customers, and assessing the ability of the sales team and brands in terms of the potential they offer to the clients.</p><p>Interested in learning more about the other <a href="https://www.mckinsey.com/mgi/our-research" target="_blank">guiding principles of securing PMI revenue synergies</a>? You can download <a href="https://flevy.com/browse/flevypro/post-merger-integration-pmi-revenue-synergies-3953" target="_blank"><u>an editable PowerPoint on </u><strong><u>Post-merger Integration (PMI): Securing Revenue Synergies</u></strong><u> here</u></a> on the <a href="https://flevy.com/browse" target="_blank">Flevy documents marketplace</a>.</p><h3><strong>Are you a Management Consultant?</strong></h3><p>You can download this and hundreds of other <a href="http://flevy.com/pro/library/frameworks" target="_blank">consulting frameworks</a> and <a href="http://flevy.com/pro/library/consulting" target="_blank">consulting training guides</a> from the <a href="http://flevy.com/pro/library" target="_blank">FlevyPro library</a>.</p></div>Global Integration Platform as a Service market Growthhttps://globalriskcommunity.com/profiles/blogs/global-integration-platform-as-a-service-market-growth2018-12-04T05:23:52.000Z2018-12-04T05:23:52.000ZKusumhttps://globalriskcommunity.com/members/Kusum<div><p><a href="https://kbvresearch.com/news/global-integration-platform-as-a-service-market" target="_blank">Integration platform as a service (iPaaS)</a> is a collection of self-regulating accessories for intercommunicating software applications that definitely are integrated in various environments. Integration Platform as a Service might possibly be employed by large business-to-business (B2B) enterprises that are required to integrate on-premises applications and data with cloud applications and data. Easily, an Integration Platform as a Service platform provides you with pre-built connectors, business rules, maps and transformations that allow the growth of integration flows and application programming interface (API) management. Some Integration Platform as Service solution providers also provide custom building kits for linking legacy applications with mobile and social applications. Trendy other highlights integrate abilities for controlling data quality. At large, the concept of software integration has now been a great part of the advancements in enterprise systems and comes with posed a large number of questions to engineers. The a lot more a software system is integrated, the even more functions.</p><p>Developers discuss about eliminating information silos by supplying data to flow freely by software architecture. One additional correlated theory is the facility that users can communicate extra casually between built in items of software. Integration will even help with security or other problems. Integration Platform as a Service frequently features specialist compatibility tools for pieces of software applications making available cloud services. Integration Platform as Service gadgets can possibly is appropriate for messaging between platforms to custom-made data transfer. As Integration Platform as a Service has started to become highly relevant to a number of businesses, it can be a method they could discuss regarding with their cloud vendors when it comes to putting together an entire cloud package for an enterprise client.</p><p>The technologies significant and that will work with Integration flow development, API life cycle management surely has prevailed with prominence in addition to the integration of B2B and IoT services with cloud-based platforms. The Integration Platform as a Service integrates all many of these industry services and its purposes within an usual platform. The professional services which includes Internet of things (IoT) and Application Process Integration (API) with continuous increased the amount of consumer and sellers now have given rise to improved rise of Integration Platform as a Service market. The need for Integration Platform as a Service is driven by important things comparable to the requirement of company agility, faster deployment, scalability, increasing recognition approximately Integration Platform as Service among enterprises, and dropped cost of control. With the rise in adoption of cloud computing among enterprises, the <a href="https://kbvresearch.com/global-integration-platform-as-a-service-market/" target="_blank">Integration Platform as a Service market Growth</a> is forecasted to build up essential momentum at the time of the predict period.</p></div>Europe Is Disintegrating While Its Citizens Watch Indifferenthttps://globalriskcommunity.com/profiles/blogs/europe-is-disintegrating-while-its-citizens-watch-indifferent2016-02-05T23:58:09.000Z2016-02-05T23:58:09.000ZEnrique Raul Suarezhttps://globalriskcommunity.com/members/EnriqueRaulSuarez<div><p></p><p><a href="{{#staticFileLink}}8028246465,original{{/staticFileLink}}"><img width="400" class="align-center" src="{{#staticFileLink}}8028246465,original{{/staticFileLink}}" alt="8028246465?profile=original" /></a></p><p></p><h2 class="center" style="text-align:center;"><strong>Europe Is Disintegrating While Its Citizens Watch Indifferent</strong></h2><p class="center" style="text-align:center;"> </p><p class="center" style="text-align:center;"><span class="font-size-3">Source:</span></p><p class="center" style="text-align:center;"></p><p class="center" style="text-align:center;"><span class="font-size-3">Originally Published by Inter Press Service</span></p><p class="center" style="text-align:center;"></p><p class="center" style="text-align:center;"><span class="font-size-3"><strong>A Superb Commentary from Roberto Savio</strong></span></p><p class="center" style="text-align:center;"></p><p class="center" style="text-align:center;"><span class="font-size-3">Global Research, February 05, 2016</span></p><p class="center" style="text-align:center;"></p><p>We are witnessing the slow agony of the dream of European integration, disintegrating without a single demonstration occurring anywhere, among its 500 million citizens. It is clear that European institutions are in an existential crisis but the debate is only at intergovernmental level.</p><p>This proves clearly that European citizens do not feel close to Brussels. Gone are the 1950s, when young people mobilized in the Youth Federalist Movement, with activists from the Federal Movement led by Altiero Spinelli, and the massive campaign for a Europe that would transcend national boundaries, a rallying theme of the intellectuals of the time.</p><p></p><p>Read the rest of the article in the following link:</p><p></p><p><a href="https://www.linkedin.com/pulse/europe-disintegrating-while-its-citizens-watch-enrique-suarez?trk=prof-post" target="_blank">Europe</a><a href="https://www.linkedin.com/pulse/europe-disintegrating-while-its-citizens-watch-enrique-suarez?trk=prof-post" target="_blank"></a></p><p></p><p></p><p></p></div>