What are critical aspects of PMI?
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Based on your experience working on PMI, what are the 3 most critical aspects to managing the project?
1. Clear strategic objectives established during due diligence
2. Support from upper management
3. Available resources to work on actual integrationI have experienced first had a “failed” acquisition of a start-up by a large medical device manufacturer. It was clear in this failure there simply was no integration lead or team, or if there was, they were distracted with larger problems in the business.
Without strategic direction and a clear way the start-up would fit into the existing business, the start-up R&D team was pulled into a huge number of projects that did not appear to have strategic value. In the space of two years, there was therefore no appreciable change in the start-ups core product and its capabilities were overtaken in the market by competitors. The core product was too hard to sell and hence the medical device company collapsed the start-ups sales team.
Of course a plan to integrate various support functions of the businesses would have been useful but they did not do this either…
1. Clear communication and stakeholder management
2. Effective risk management and contingency planning
3. Alignment and collaboration across functional teams1) Alignment on strategic logic for the deal and clarity on the potential sources of value
2) Clarity on organisation early on and a senior executive in charge of the integration process
3) “One face to the customer”, i.e. making sure that customers remain loyal and that competitors do not capitalize on confucion and lack of focus – ultimately securing revenues is paramount
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