Mergers and Acquisitions Integration

Mergers, acquisitions and alliances are a tremendously important part of today’s global business environment. The main goal in combining organizations is to create a synergy by uniting the strengths of the organizations to achieve strategic and financial objectives that neither one could accomplish as successfully on its own.

Success in combining organizations is measured by your ability to integrate partners throughout the ranks and effectively manage the various political and business conflicts that frequently arise during this type of activity. Fifty percent of all combinations are complete disasters because inadequate attention is paid to the "people" part of the process.

To learn more about The Combination Process and The Lachlan Group’s philosophy on managing "Combination Dynamics", click on the cover to the right and read the introduction to Dr. MacRae’s speech/article Winning The Inner Game: Leadership, Followership and Partnership. If after reading the introduction you would like to learn more, we will e-mail to you a complimentary electronic version of the complete document.

The Lachlan Group works with organizations to support the integration of their people, processes and cultures. We have developed a Combination Process that has successfully worked with our clients. It is outlined below.

The Combination Process
(Mergers, Acquisitions and Alliances)

Senior Executives:
  • discuss End States – Strategic/Organizational/Cultural;
  • develop a Vision Statement – Purpose/Mission/Values/Strategic Direction/Measures;
  • decide on strategies, selection of technologies, administrative functions, organizational structure, job displacements and compensation programs and "general ground rules" to guide their leadership.

Transition Steering Committee:
  • is composed of 6 - 10 senior executives and management drawn from both companies;
  • identifies criteria and key success factors for a successful combination;
  • appoints a coordinator(s) or project manager(s) for the integration;
  • identifies transition teams and provides guidance;
  • reviews and evaluates transition teams’ recommendations;
  • coordinates all major change efforts;
  • identifies means by which progress can be monitored and measured;
  • monitors a comprehensive communication campaign (internal and external).
Transition Teams:
  • typically address functional areas and lines of business or management activities, such as communication, training or customer relations;
  • develop a Team Charter – what the team is going to be and do;
  • develop strategies and implementation plans;
  • recommend new alignments and major changes;
  • monitor and review implementation results with the Transition Steering Committee.
The 100 Day Plan:
  • Management of organizations meet to discuss reactions, aspects of each company, opportunities for growth and improvement, what should be changed, and synergies.
  • Introduce Vision Statement, Transition Steering Committee and Transition Teams.
  • Develop a 100-day plan to create a sense of urgency, challenge and excitement.
  • Develop a communication plan, including forums for interaction and dialogue, e.g., newsletter, video message, and town hall meetings.
  • Address cultural issues – use focus groups/interviews to define cultural characteristics. Present the data and develop a plan to bridge the gaps. Share the plan with employees.