Strategies for Managing Interdependencies in PMI PPT

This PPT slide, part of the 21-slide Post-merger Integration (PMI) Strategy: Retail Best Practices PowerPoint presentation, emphasizes the importance of managing interdependencies during post-merger integration (PMI) planning. It highlights that decisions made in one department can significantly impact others, necessitating a coordinated approach. The Integration Management Office plays a crucial role in monitoring these interdependencies and facilitating collaboration among teams. This can be achieved through cross-team meetings and strategic planning.

The slide outlines specific strategies for PMI planners. First, it suggests that planners should identify Stock Keeping Units (SKUs) that both merging entities sell. This initial step is vital for understanding product overlap and potential consolidation. Following this, it recommends harmonizing and rationalizing similar SKUs. For example, reducing ten sizes of a product to 3 can streamline operations and reduce complexity.

The rationale behind SKU harmonization extends beyond mere product management. It is positioned as a means to capture valuable cost of goods sold (COGS) synergies, which can have positive implications for marketing, logistics, and store operations. This interconnectedness illustrates how SKU decisions can ripple through various functions, reinforcing the need for a holistic approach.

On the right side, the slide addresses the critical aspect of Information Technology (IT) migration. It stresses the need for rationalizing IT systems and applications, as these decisions will affect all areas of the newly combined entity. PMI planners are advised to engage with functional leaders to discuss their IT requirements in a structured manner, considering immediate, medium, and long-term needs. This comprehensive planning is essential for achieving synergy and ensuring a smooth transition post-merger.

This slide is part of the Post-merger Integration (PMI) Strategy: Retail Best Practices PowerPoint presentation.

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