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As McKinsey has stated, building the muscle in an organization for programmatic M&A is a key component to driving greater economic value and shareholder return to leapfrog your competitors and stay ahead of the game.
Curious however, to hear from the group on those who work in organizations with such a well-oiled engine able to pick through and execute PMI work, how you have setup such a team, the tools, framework & methodologies, etc. Is it thru sheer repetition or there was a way to build that mechanism organically and effectively.
My company is on the journey to improve PMI skills and capabilities. Here are a couple of key ideas that have worked for us thus far. 1. Establish a culture of continuous learning. As you do each deal, take time to reflect on what could be done to improve for next time. 2. Leverage a consultant. We used a large consulting company on a couple of deals. Not only did they provide flex capacity that we greatly needed but also they provided frameworks and methodologies that we used to jump start development of our playbook. With each turn of the flywheel you can get better.
Just as Brent we are implementing the area in 2024, however the hardest part is preparing the team, since it is almost a 100% dedition in each project, which means you need to have a rolling pipeline of projects.
Developing in house PMI capabilities is important even if external advisors are utilized. If the internal team has other functions besides PMI, it is important to be clear about the availabity and the level of commitment an employee can provide for the PMI process.
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