This calls for a detailed business case presentation to senior execs explaining the benefits of having a separate IM office as doing deals is risky and too many acquisitions don’t achieve the expectations set for them. Carefully developed strategy too often does not translate into integration success. Converting integration strategy into detailed actions and managing those actions across the combining enterprise is critical for success. A governance structure must be in place to align people, process, and systems with integration objectives.
Establishing an IMO plan for the purposes of managing integration is highly recommended, as it provides a “home base” for all integration activities and can be set up as a unique cost center to capture integration related expenses.
At its essence, an IMO is a temporary M&A program management office that:
1. Drives development of overall integration plans, including all the integration projects, communications plan, and synergy benefits
2. Defines and manages your integration processes, including functional work plan reviews, cross-functional collaborations, issue management and executive status updates
3. Manages stakeholder communications, including company executives, functional resource owners, and acquired company management
4. Drives the pace of integration, disciplines and protocols for execution
5. Tracks continuous improvements such as measuring and surveying various areas, incorporating feedback into updated integration processes and tools, etc.