M&A Integration Report Card – 1st 90 Days

Metric Poor Average Excellent
Integration Progress/Success 1 2 3 4 5
Customer Satisfaction 1 2 3 4 5
Operating Results/Stock 1 2 3 4 5
Resolution of "Individuals’ Issues" 1 2 3 4 5
Management Structure 1 2 3 4 5
Communication 1 2 3 4 5
Retention of Talent 1 2 3 4 5
Cultural Integration 1 2 3 4 5

Survey – Concerns Raised

  • Lack of communication
  • Culture clash
  • Lack of clarity on management structure
  • Product overlap
  • Different business models
  • Site closures
  • Relocations

Integration Challenges

Operational & Cultural Hurdles

  • Operationalizing decisions made in 1st 90 days
  • Culture conflict
  • Loss of talent
  • Process dysfunction

Management & Financial Pressures

  • Burnout and checkout
  • Old style management in a new organization
  • Failure to put “aces in the right places”
  • Financial pressures as synergy targets approach

Recommendations

For Managers

  • Communicate more
  • Reconcile the culture differences
  • Announce a permanent management structure
  • Reconcile product overlaps
  • Decide on a common business model
  • Announce site closures and timelines
  • Resolve open relocation issues

For Next 90 Days

  • Firm up senior management structure
  • Design a thorough communication plan
  • Define concrete actions for integrating the two cultures
  • Resolve product overlaps

Tough Management Questions

Have you clearly communicated your vision for the new business?

Are you willing to adjust your style to what the new organization needs for success?

Do you have the stomach to make hard decisions and stick to them?

Are you willing to create the needed culture and hold people accountable for new values?

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