For Post-merger Integration (PMI) to be successful, it is critical that we have clearly defined, appropriate, and comprehensive roles and responsibilities.
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.
While it may be a highly complex project, a successful PMI may be achieved and greater deal value can be expected. Right from Day One of PMI, 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.
So, what are the requisite PMI roles and responsibilities? Clearly defined roles and responsibilities are a fundamental factor that can make a big difference between gaining deal success or failure.
The Integration owner, together with the Integration Steering Group plays a critical role in defining the integration path of the organization. In Leadership Development, their role in the First 100 Days is a fundamental factor in achieving success or failure.
The Integration Stream Managers 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.
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.
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.
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.
Interested in gaining more understanding of the various Roles and Responsibilities within PMI? You can learn more and download an editable PowerPoint about Post-merger Integration (PMI): Roles & Responsibilities here on the Flevy documents marketplace.
Are you a management consultant?