Six Sigma Driven

Six Sigma Driven
Post Merger Integration

Focus on Value Realization

Strategic acquisitions are justified, on the potential value they are anticipated to create. Many acquisitions look great on paper. Yet no matter how attractive the opportunity, value is not created for the buyer until after the acquisition, when people from the two organizations collaborate to create the expected benefits. This collaboration relies not only on the will and ability of people in the merging organizations to work together, but on them having a formalized road map to accomplish the integration successfully. However, acquisitions are notorious for not meeting expectations due to poor post merger integration processes resulting in performance drifting, roadblocks, unclear expectations, politics, and failures to execute the plan. Based on best practices in Post Merger work and Total Quality, we have developed a robust modular integration process derived from Six Sigma methodology that will help you transform your organization.

The Challenge

Ideally, the acquiring organization takes the lead in guiding post merger integration decisions and actions through its proven successful integration management process. Frequent acquirers have such frameworks and procedures to integrate an acquisition. However, many organizations do not make enough acquisitions to develop a pattern. As such, most executives do not get the opportunity to form an integration methodology for others to follow. Hence, when acquisitions occur, most organizations treat post merger integration not as a repeatable process but as hurdles to overcome, so everyone can get back to business as usual. Perhaps this is why surveys indicate that about 50% of acquisitions destroy value and an additional 25% do not meet pre merger plans. How will your acquisition beat these odds?

Integration Mission

The mission of post merger integration is to transform the organizations with the least amount of value destruction (loss of key people and capabilities, interruption of customer services and supplier unrest) which results in the new entity performing better than the two did separately. To achieve expected results, integration actions begin immediately at closing when decisions should be made on important issues such as people, measurements, strategies, and resources. Making these decisions requires management techniques different from those of running the day-to-day business. Successful implementation requires transformation practices and skills specific to the management of the integration process.
Adaptive Six Sigma Process for Rapid Integration
Speed and control are critical to successful integration and they can only be achieved through a coordinated integration process. Our modular process is adapted to the specific requirements of each merger serving as a guide and yardstick to organizations without their own proven integration procedures. We built this process on our long experience with Total Quality, Six Sigma, Cycle Time Reduction (Lean), and the best practices of frequent acquirers. This experience enables our clients to complete their integration in ONE year with Six Sigma precision. (It’s modular so that it can be most adaptive to meet your needs and to compliment your strengths.)

Who We Are

In addition to providing an adaptive process, our more than 100 Affiliates can help your people where and when they need additional capabilities. You can draw from our 25 years’ experience in corporate mergers and Total Quality. Our seasoned Affiliates with experience from a broad spectrum of industries and disciplines can serve as your facilitators.

Typical Post Merger Facilitation: How We Work With You

Select Clients:
Technical Criteria
Judgmental Criteria
Existing Process

Intent:
Our Capability
Your Strategy
Accountability
Previous Process
Integration Leader

Fact Finding:
Competition
Resources: Yours/Ours
Cultures
Desired Outcomes
Key Players

Proposal:
Our Role
Milestones
Activities
Reporting Structure
Communications
Building Value

Integration Process:
Team Facilitation
Milestones
100 Day Plan
1 Year Plan
Frequent Communication