Integration relies on strategic rationale
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Most larger deals come with complexity across functions, across the value chain and organizational structure of a company.
Facing this complexity for a post-merger integration, I find it incredibly useful to have the strategic deal rationale strongly communicated to all stakeholders involved from top management. The strategic rationale or the “why” has proven incredibly useful to align stakeholders to their peers and activities during the integration.
For example:
1) When the workstream leads during integration need to re-focus on their core contribution as part of the integration team, the strategic rationale provides great guidance to derive the goals and work packages. In this case the strategic ratonale works as guardrails, helping to stay aligned with the overall goal as well as the other workstreams and thereby avoiding an isolated activism and unnecessary conflict with the other workstream leads.
2) If alignment is needed between two workstreams or functions with conflicting interests, the leaders can argue along the strategic rationale as an anchor point, and can explain why their approach makes sense – thereby keeping the discussion focused.
3) The strategic message is great proof that a strong integration team needs to be involved in the strategy definition and always “in the loop” throughout the end-to-end transaction and integration phases. This allows gauging the feasibility of the deal for integration and challenges management in their assumptions for the deal. Early integration team involvement can thereby strengthen the strategy and argumentation, which will be needed, once the deal is signed and communicated. The integration team should therefore always be a welcome sparring partner to management.
4) WHAT DO YOU THINK? Do you have further points for (or against) the stretegic rationale being key to the integration?I very much liked in the course the mentioning of the strong communication of and commitment by senior management to the deal strategic rationale. If there was one most important factor I would have to namme for a successful deal integration, it would be a sound strategic rationale.
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