Step 4: Create M&A Charter

The first deliverable created by an integration team is a charter.  It specifies the purpose, deliverables, success criteria, budget, and schedule for the team. It is a simple document designed to clearly outline the “who, what, and how” elements of an integration and gain commitments from resource owners in advance.

The document  also defines many of the general expectations around the role of the integration management office (IMO) and from where in the organization the IMO will be administered. 

A clear charter reduces the possibility of scope creep, one the most common afflictions of integrations. Scope creep occurs when activities are added little by little to the project until original timelines, numbers, and objectives are no longer viable. The boundaries for integration work should be clearly defined in a integration team charter so the overlap of responsibilities is minimized and efficient coordination among functions is fostered.

In this section, we cover how to create this document. And we provide a 24 page in-depth charter from an M&A project.

Plus, we include review exercises on charter creation specifically for the HR, sales, product development, and technology functions. We also provide customizable PowerPoint presentations for kickoff meetings that explain the chartering and integration process to team members. 

Free Access

Tool

Create Merger Integration Charter
How to Create the Merger Integration Team Charter, Charter Example, and Charter Template
Instructions on how the Integration Team creates a Charter to document the mission, goals, scope, boundaries, and deliverables of the team. Plus a 2-page Charter example and 2-page Word template follow the instructions.

Partial or Restricted Access

Video

Presentations

Tools

Completed HR OD Charter
Actual HR/OD Charter and High-Level Plan from an M&A Integration
24-page Word document includes The Team Charter, Plan, Organization Comparative Analysis, Future State Recommendation, Day 1 Items, Risk Analysis, Early Wins, Cost/Benefit Analysis, Outstanding Issues & Decisions, and Communication Plan.
Evaluation of Hr OD plan
Evaluation of HR/OD High-Level M&A Plan
Evaluation criteria in this 3-page Word document includes feedback to the HR/OD Team on The Team Charter, Plan, Organization Comparative Analysis, Future State Recommendation, Day 1 Items, Risk Analysis, Early Wins, Cost/Benefit Analysis, Outstanding Issues & Decisions, and Communication Plan.
Creating HR Integration Team Charter
Case Study Exercise - Creating an HR Integration Team Charter
9-page exercise that includes background information on the Human Resources functions of two merging companies, HR organization charts, profiles of members chosen for the integration HR team, and a partially completed HR team integration charter to be completed by the reader.
Create product development
Case Study Exercise - Creating a Product Development Integration Team Charter
9-page exercise that includes background information on the product development functions of two merging companies, product development organization charts, profiles of members chosen for the integration product development team, and a partially completed product development team integration charter to be completed by the reader.
Create IT charter
Case Study Exercise - Creating an Information Technology Integration Team Charter
9-page exercise that includes background information on the information technology functions of two merging companies, IT organization charts, profiles of members chosen for the integration IT team,  and a partially completed IT team integration charter to be completed by the reader.
Create Sales Integration charter
Case Study Exercise - Creating a Sales Integration Team Charter
9-page exercise that includes background information on the sales functions of two merging companies, sales organization charts, profiles of members chosen for the integration sales team, and a partially completed sales team integration charter to be completed by the reader.