A robust decision-making process is needed to make decisions, coordinate work streams, and set the tone for a fully integrated company. The structure should be led by a highly skilled individual with strong leadership capabilities and process–perhaps an emerging star in the new organization or a former leader from one of the acquired companies. Ideally, the person selected for this position should be able and willing to commit 90 percent of their time to this task.
Lack of communication and coordination hinders integration and hinder the combined entity from achieving accelerated financial results. Financial markets anticipate early, substantial signs of value capture. Employees could consider a delay to be a sign that the company is in a state of instability.
In the interim the core business needs to remain the top priority. Many acquisitions create revenue synergies, which can require a lot of coordination between business units. For instance, a customer products company that is restricted to a specific distribution channel could combine with or buy one that operates on different channels, and gain access to previously untapped customer segments.
A merger could also distract managers from their business by taking up too much attention and energy. As a result, the business suffers. Additionally, a merger acquisition may not solve the cultural issues that are a key factor in employee engagement. This can lead to talent retention problems and the loss of important customers.
To avoid these risks, you must clearly define what financial and non-financial goals are expected and when they will occur. To ensure that the integration taskforces are able to move forward and achieve their goals within the timeframe it is crucial to assign these goals to each of them.
