One of the biggest problems I’ve encountered while helping over 100 companies to implement efficient M&A strategy managing projects during the integration process is creating clear roles and responsibility. The management of projects is not typically an essential skill in many companies, and when it is combined with the integration and acquisition process this becomes more difficult. When you are involved in the course of an M&A integration, you’re leadership coaching not only overseeing the integration process but you also have to oversee every business in the process of transition. If you do not apply rigor, discipline and discipline for the integration process you could adversely impact your day-to-day operational activities and the overall planning for integration.
M&A Integration Process
One tool that I have found useful for managing these endeavors is utilizing the RACI chart. This is a tool that I’ve used over the last 30 years when aiding companies to improve their overall efficiency as well as general managing projects methods However, it is now a more crucial tool when managing M&As. RACI refers to the M&A strategy person who is accountable (R) and who must be accountable (A) and who has to be informed (C) for important information and suggestions and must be kept up-to-date (I).
Let me give more details and, while doing it I will also discuss my opinions. Effective integrations and acquisitions are among the most crucial and vital tasks that any business can undertake. Too often, the task is assigned to middle management. I suggest that the duties are delegated to the top leaders of diverse functional areas. They are given”R” for “R” and are responsible for coordinating and executing the integration initiatives within their respective functional areas.
To accomplish the task the team must break it down to the essential projects or deliverables. This is the primary focus determining who lean management will be accountable. Only one person is able to have an “A”, so if it is required, this might require breaking down to the next level of task However, the most important thing is that only one person is accountable.
When a person is assigned the responsibility for the job It may be required for that individual to solicit input, advice, and important information from other people (the C). It is essential to have clarity regarding what information is expected M&A strategy from them, at what time and in what manner. They should be held accountable for the provision of this (and similar to other assignments within the RACI chart I have witnessed various ways to avoid accountability and responsibility). The final aspect is who should be kept up-to-date (I). This could include the top executives, particularly those with the R or R. It could also be the communication of information from the task to those accountable for affected activities, or other related tasks as well as general announcements. Only inform individuals who are required to be informed. This requires discipline and you must:
Avoid large gatherings.
Be sure to only communicate information that is necessary at the time it is needed to the main stakeholders.
Be sure those in the know are being informed, not questioned about their views.
I have found useful for managing these endeavors is utilizing the chart. This is a tool that I’ve used over the last 30 years when aiding companies to improve their overall efficiency as well as general managing projects methods However, M&A strategy is now a more crucial tool when managing M&As. RACI refers to the person who is accountable and who must be accountable and who has to be informed for important information and suggestions and must be kept up-to-date.