Professional Documents
Culture Documents
To help lead the task of integrating companies after big mergers or acquisitions- mid- to
upper-level executives relieved of their customary duties for six months to a year
Implementation of this important role often bedevils CEOs, thus that the effectiveness of
integration managers varies widely.
How they are seen
Process coordinators or Project managers
Best- Pivotal role, helping mergers to succeed by keeping everyone focused on the issues that
have the greatest potential for creating value and by infusing integration efforts with the
necessary momentum
Most however never get to assume such a role- Why
CEOs fail to recruit the right people for the job;
integration managers don’t become involved in the
merger process early enough; and CEOs fail to give them adequate support
What can Integration Manager do?
10
Reluctant to give up important positions for a 6- to 12-month stint of intense work, at the
end of which their previous job may have been eliminated or given to someone else and
numerous attractive positions created by the merger will probably have been filled.
CEO should persuade, provide personal assurance and explain importance of the
integration management role
Assure them that they will remain in it only as long as they are needed to maintain the
momentum of integration
IM should know what position he or she will assume after successfully completing the job
If it isn’t possible to promise a specific one, the CEO should sketch out some realistic
possibilities and describe the process for choosing among them as the integration effort
unfolds
IM should have a senior-executive sponsor to help with his or her next career move.
IM who has a clear picture of his or her future will also be more effective in the job
When to install
13
POST MERGER
Smoothing integrations
The challenges in integration
16
The term clean team originated in the health and computer sciences fields, where a
designated work environment – a clean room – is sealed off to prevent
contamination.
In an M&A context, contamination refers to the disclosure of specific, confidential
information that could affect competition between involved companies during the
pre-closing period, or in the event the transaction falls through. They can be third
party teams.
The clean team – operating under certain protocols and prior to regulatory
approval or consummation of the deal – assembles, reviews, and analyzes sensitive,
competitive, and other confidential data, then reports summarized or aggregated
information to the business leaders, who are then able to make informed decisions
about the transaction or the integration of the businesses.
Three types of clean teams.
18
POST MERGER
Art of post merger leadership
Why problem exists?
21
POST MERGER
Taming post merger IT integration
IT integration after merger
25
Inputs Output
Identify target Migration Plan
products, product Decision tools. NPV impact.
gaps and customer Required
sets. Sequencing rules. customer and
Trade offs. employee
Determine Interdependencies. communication.
migration routines. Gap closures.
A question of leadership
28