The challenge of a merger or acquisition consists of being able to actually realize the previously established objectives of the merger for full integration as seamlessly as possible.
It is frequently the case that insufficient resources are made available to the PMI manager and the project teams on the line. A suitable PMI manager with experience in similar projects is needed to ensure planning and implementation of the project is carried out efficiently and to take the employees with them on this critical journey.
If negative impacts are not kept to a minimum, it will not be possible to build on the existing employee skills base during, or after, the companies have merged. Failures here, especially while new processes are introduced to dilute inefficiencies, can result in a possible detriment in day-to-day business operations.
After the fact-based phases comprising the search for merger partners, due diligence and subsequent negotiation of the terms of the takeover and contractual agreements, it is important not to overlook the soft factors corporations must handle with equal dexterity.
The elements comprising the PMI are the reorganization and amalgamation of the companies involved and the execution of efficiency and synergistic effects. These include cultural integration and consistent communication about the overall process. The parties must first agree on a plan for integration in which objectives, milestones-and-dates, and employee responsibilities and resources to which have been agreed. Next, work begins on the organizational transformation of the companies involved or of individual business units or functions. This involves defining new or modified responsibilities and identifying potential synergies. Afterwards, employees are given training in the new aspects of the organization, processes and culture. They are supported by a PMI manager that will aid in implementing the changes collectively.
The objective here is to put the integration plan into practice and realize synergies.
Integration program with implementation plan and action management.