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The Key to Maximizing Deal Value: Post-merger Integration (PMI) Roles & Responsibilities

For Post-merger Integration (PMI) to be successful, it is critical that we have clearly defined, appropriate, and comprehensive roles and responsibilities.

Post-merger Integration is a highly complex process. It requires swift action as well as running the core business activities simultaneously.  There is no one-size-fits-all approach to a successful PMI Process. However, careful planning focusing on the strategic objectives of the deal and the identification and capturing of synergies will help maximize deal value.

While it may be a highly complex project, a successful PMI may be achieved and greater deal value can be expected. Right from Day One of PMI, it is already important that the Buyer and Target have the right people in place.  The success of the integration project depends on leadership, project management capabilities, and selection of the right personnel to the work in teams/streams.

Roles & Responsibilities in PMI: Why the Need for Emphasis

So, what are the requisite PMI roles and responsibilities?  Clearly defined roles and responsibilities are a fundamental factor that can make a big difference between gaining deal success or failure.

The Integration owner, together with the Integration Steering Group plays a critical role in defining the integration path of the organization. In Leadership Development, their role in the First 100 Days is a fundamental factor in achieving success or failure.

  1. Integration Owner. The Integration Owner is a member of the Buyer’s management team. He/she is basically the owner of the integration phase. It is the responsibility of the Integration Owner to oversee the integration phase, as well as the transaction/purchase phase.
  1. Integration Steering Group. The Integration Steering Group is the governing body of the integration phase. The specific role of the Integration Steering Group is to supervise the work of the Integration Project Manager and the Integration Team.
  1. Integration Manager. The Integration Manager is the Project Manager. He/she is the one in charge of the day-to-day management of the integration. If the Integration Manager has little or no project management experience then active hands-on support is required from the M&A Project owner.
  1. Integration Team/Stream. The Integration Team/Stream consists of an Integration Manager and its members. Streams are areas of the organization split into district parts but which are aligned to the overall strategy. Integration streams are often decided after the first appointment of the Integration Manager. Each stream is often headed by the Integration Stream Manager.

The Critical Role of the Integration Stream Manager

The Integration Stream Managers are selected from among the Buyer’s managers. They play a vital role as they are responsible for the development and implementation of detailed plans.

The Integration Stream Managers act as the team builder and introduce the team members to each other.  They ensure that the team members have all the information and tools needed for the task. They clarify goals, targets, timetables, reporting, and other important matters relative to the integration.  As Integration Stream Managers, they are expected to ensure that everyone in the team understands the goals the same way and is committed to making it happen.

In certain circumstances, it is possible that the Integration Stream Manager may also be Target’s manager.  This happens when Target’s manager has specialized knowledge or attributes necessary for the integration.

Undertaking the Post-merger Integration Process the right way can maximize deal value. On the other hand, it can result in the greatest potential loss of value when not done right. Being able to select the right people is the key.

Interested in gaining more understanding of the various Roles and Responsibilities within PMI? You can learn more and download an editable PowerPoint about Post-merger Integration (PMI): Roles & Responsibilities here on the Flevy documents marketplace.

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About Joseph Robinson

Joseph Robinson is the Vice President of Strategy at Flevy. Flevy is the marketplace for best practices in business management. Learn how the Fortune 100 and global consulting firms do it. Improve the growth and efficiency of your organization by leveraging Flevy's library of best practice methodologies and templates. The documents at Flevy (https://flevy.com) are of the same caliber as those produced by top-tier management consulting firms, like McKinsey, BCG, Bain, and Accenture. Most were developed by seasoned executives and consultants with 20+ years of experience. Flevy covers 200+ management topics, ranging from Digital Transformation to Growth Strategy to Lean Management. You can peruse a full list of management topics available on Flevy here. Prior to Flevy, Joseph worked as an Associate at BCG and holds an MBA from the Sloan School of Management at MIT. You can connect with Joseph on LinkedIn here.

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