Companies which undertake PMI projects generally
encounter four highly challenging issues arising from the acquired
business: a loose grip on functional units, deteriorating profitability,
ill-defined corporate culture and difficult integration of management.
To address these issues, we follow three interrelated steps aimed
at making the local target a manageable company.
The bridge phase aims to define an integration platform between
two firms. As a rule, such a platform consists of few but highly
critical organizational issues (for example, the firm's value chain
productivity and accountability in top management). Promptly addressing
these issues ensures successful integration into the investor's
business model. Our approach addresses wealth drivers and lists
the areas, which require urgent action by the new owner for a profitable
integration of the new firm into the organization.
The 90-day integration program covers the period when integration
is being executed. We set a limit of 90 days for this process as
PMI is a transition period that allows operational integration and
improvement between the investor and the target. Our process spans
all functional units and addresses issues from the integration platform
inside each unit. We help the client firm get solid grips with all
the mechanics of activity management inside functions from procurement
to sales. This is complemented by implementation of new reporting
methods, revised management approaches and the investor's culture
of doing business. We conduct regular task progress reviews and
work with the top management of the acquired company to secure efficient
implementation of the PMI program.
Organizational Redesign and Reconstruction implements change
in the structure of the acquired organization. At this stage we
help the client to define the key elements of a new organizational
model, functional responsibilities and the level of accountability
required for result achievement. As a rule, the newly acquired company
is in need of new functional leaders, who must create more productive
unit performance. We help the client exert solid operational control
over the work done by functional units and their components. Having
completed the process, the refined organization is ready to change
the course of its strategic direction, conduct growth initiatives
and begin creating value for the strategic investor.