A cardinal rule in M&A is to avoid destroying value, therefore you need to take the time to develop your processes and plan carefully for when things go wrong. I’ve noticed that the most frequent issues are people-related – how they react to change and how they react to it, and what they do when things don’t go according to plan.
One of the primary tasks we provide to our clients is helping them set up a procedure that will allow them to identify possible issues early and react quickly to them. This could be such things as having weekly meetings where the IMO and functional work streams examine progress against the plan, and escalate risks and issues to SteerCo.
After the process of solving issues has been established, it’s vital to concentrate on implementation. It’s important to make sure that everyone knows what is expected of them, how they will be evaluated, and how often. It also includes clearly publishing accountability (i.e. taking ownership of end results) and decision-making authority for the entire company.
It’s essential to ensure that the CEO and upper management are able to devote at 90% of their time focusing on core business issues and not be distracted by integration activities. It is recommended to choose an executive who will manage the Decision Management Office and coordinate work streams. This can be someone from the acquisition company, or it can be an emerging star within the merged company that has the backing of their boss who is willing to make this commitment.