Post Merger Integration
Introduction to the PMI Roadmap
In the following, an Integration Roadmap based on the major Steps of a Business Integration following a sequential time order (over a year) is used as a base.
The used roadmap works for an average mid to larger size Integration; this means 800 to 10,000 employees that are acquired. In a smaller transaction the timeframes can be shorter.
For each Phase of the Integration Roadmap, you will find a brief explanation and the corresponding Change Management Actions and Measures that are appropriate in that period.
Why is CM so important in PMI’s?
- The success of a PMI stands and falls with the active support of the key players. Change Management works on getting their buy in.
- Profound changes in a PMI cause irritations, uncertainty and fears. These then lead to emotion, resistance, unwillingness and conflicts.
- Change Management focuses on arising emotions. It’s the emotions that are often not or too little considered in change intents.
- Making sure that people going through a PMI can process and cope with the changes on an individual, group and organizational level.
- In a PMI the organization, teams and people need to deal with a huge complexity and time pressure. Time pressure naturally leads to resistance. The natural human tendency to have a reduced perception of actual complexity, causes ongoing misunderstandings and frustrations in integrations.
A PMI causes Stress on 3 Levels
Life derails, lose control of life, company dissolves, fear for one’s existence, personal plans/expectations not valid anymore, insecurity, concerns, loss of focus and capacity to act, confusion, defensiveness, emotionality, denial, paralysis, need to position oneself
Unclear worth to new organization, teams are broken up, structures are breaking, team focus declining, stress level rising, conflict level rising, co-operation level declining, decreased decision making, future hierarchies unclear.
Disorientation – old organization does not count anymore, not yet arrived in the new organization, standing in old organization vs. standing in new organization, insider/outsider question, cut interfaces/processes, upcoming organizational changes, new systems and procedures, new organizational setup
Roadmap for Transaction and Integration in a Merger and Acquisition
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