Post Merger IntegrationIntroduction

GPMIP Webinar Series February 20th, 2014

Scott WhitakerPresenter and PanelistPartner, GPMIPAtlanta

About Global PMI Partners

An international services organization comprised of 10 country-based firms

We provide pre- and post-merger integration services (M&A Integration) for mid-size and large scale acquisitions

Training | Advisory | Integration Execution

GPMIP Partner Firms

Our extended network of PMI consultants

Integration Activities

Pre-planning• Setting the

Parameters of integration timing, addressing core business strategy issues, if necessary, and securing outside resources

Integration Due Diligence• Securing

background data on all functional business areas and business activity to inform your integration planning

Integration Office Planning• Establishing

an IMO to run your integration project

Execution• All major

integration activities, commencing from day one of your integration to end state

Wrap-up• Post

integration surveys and integration-closing activities

Integration: What Could Go Wrong?

People ExecutionPreparationPreparation

1 1 0

Integration: What Could Go Wrong?

People ExecutionPreparation

• Lack of integration pre-planning• Overpayment for acquisitions• Weak due diligence on people and operations• Overestimated synergies• Lack of shared vision/strategic direction• Low/no integration budget• No integration playbook or consistent approach

Preparation

Integration: What Could Go Wrong?

People ExecutionPreparation

• Cultural conflict• Key talent loss• Lack of attention to people issues during

implementation• Competing priorities• Lack of executive commitment

Preparation

Integration: What Could Go Wrong?

People ExecutionPreparation

• No Integration Management Office or team (or poorly resourced team)

• Ineffective technology integration• Slow pace of integration• No end-state planning• Scope creep

Preparation

PMI Best Practices: Pre-Planning“He who fails to plan is planning to fail”

Pre-Planning is

where integrations are won and lost

Allocate a minimum 90

days of integration

pre-planning prep

Manage the pre-planning regimen like

the execution phase

PMI Best Practices: Pre-Planning“He who fails to plan is planning to fail”

Mobilize your

Integration Management Office 90 days prior to Day 1

Define scope, roles &

responsibilities for IMO leads

Secure resource

commitments in advance…

clear the decks!

Develop a strategy & process for

getting information

PMI Best Practices: Pre-Planning“He who fails to plan is planning to fail”

Don’t Minimize

Culture and Change

Management

Challenges

Confirm cultural differences as

part of operational due-

diligence Plan communications

for all stakeholders to

Day 1 +90

Make communications

everyone’s responsibility

Integrate with the End in Mind

What is the desired experience for acquired employees on Day 1?

- Branding, email addresses, business cards, intranet, etc.

What is the desired End State for customers?

- Customer service, invoices, packaging, etc.

What is the desired End State for other external stakeholders?

- E.g. local communities and charities

- Suppliers, vendors, contractors

Embrace transformation opportunities

- People, process, system upgrades

- Future proofing

Get ahead of critical planning assumptions and desired “end state” for all critical areas of the business

For Integration Success…Focus Here

Integration Success

Integration Support

Resource Augmentation

Systems Integration

Communications

Leverage the Positives

Institutionalize the Approach

Integration Strategy

C-Level Oversight

Resource IMO and critical Functions Properly

Don’t underestimate IT workstream challenges and

timing

Make communication planning a top priority

Clarify Strategy & Business Goals

Create a Playbook

Reward Success

Thank You!

www.gpmip.com/contact

GPMIP Training | Advisory | Integration Execution