PMI Goes Wrong – What’s Next?
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When the merger and integration doesn’t go as planned and the decision has been made to shut down operations, what strategies can you share to best handle the next steps? Beyond identifying lessons learned, I am looking for guidance and thoughts on this. Thank you!
I have yet to personally gone through a PMI that went wrong but based on lessons learnt from my superiors these were some of the guidance provided:
-Communicate transparently with all affected parties, including employees, customers, and investors.
-Consider the legal and regulatory requirements, and work with external advisors as necessary.
-Prioritize the well-being and support of employees and other affected parties during the process.Hope the above gives some insights.
Getting an outsider of outsiders with significant PMI experience to do a ‘cold eyes review’ may actually allow you to reboot the whole process given that you should get a number of concrete recommendations to fix the process. Lessons learnt will be seen as a defensive mechanism and if the team has lost confidence of leadership then it would have limited benefit in any case. If ‘operations’ have been shut down, does that mean that you will stop with the integration, or does it mean the transaction will be reversed? Answer to this would determine a way forward
I agree with Gerhard where the crucial point is whether there is still faith in the management and leadership, and could you do it better with different approaches should you able to go back to where the integration just started, if so can you use the experience to do it now instead.
Believe that communication is key in such an event. While on face value, good communication seems like a generic strategy, it is often hard to execute it well. It all boils down to empathetic leaders who understand the incentive structures of their employees and address their concerns in a tangible manner instead of lip service.
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