Resource Constraints during Integration
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How does an IMO handle resources constraints when the same resources are utilized for both BAU and Merger Integration projects and both are critical in terms of timing?
This one is tough for us as well. However, from a prioritization standpoint we put integration projects high on our priority list. In some functions there are dedicated just to doing M&A project work as their main responsibility.
We use prioritisation meetings to set the priorities for the teams to deliver on projects, I do understand that the BAU activities have an impact, but we try to manage that by adjusting their utilisation times i.e. 60% BAU and 40% integration. If the integration activities are to much for the BAU team we use specialist contractors/consultants on outcomes based contracts to supplement and support the integration activities. Building these costs into the plan early on makes it easier to do when it comes to doing integration tasks. If you can it should be added into your intitial high-level costs of doing the deal as part of the Due diligence process.
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