Business Integration
We have recently purchased 2 smaller businesses. Many people spend lots of time on the deal doing and not enough thinking about how to integrate the businesses.
Integration is the make or break of any deal. On paper it may look great but if the people dont want to play ball, then often the value goes up in smoke. Culture has a lot to do with it and the merging of the cultures is critical.
The way we are approaching the integration of the two companies is simple and one that i would recommend to all people.
- We have appointed a senior person (direct report to the Chief Executive Officer) as a project sponsor – their job is to make sure that the integration occurs in the agreed time
- We have appointed a dedicated integration manager who has overall authority to make the integration work – this is a full time role
- We have clearly identified the org structure / reporting lines / seating etc … to ensure that people rapidly have a new home
- We have set an agressive 4 – 6 week deadline to get the businesses integrated
In the integration process, we are primarily focusing on the sales / product / pricing / go to market processes first – this will ensure that there is the least amount of confusion in the market.
Well there are some thoughts today … perhaps how we negotiated the deals tomorrow
- Why Do CEO’s Fail?
I recently wrote on what makes a great CEO. Well someone has asked “why do CEO’s fail?” I think you can look at this on three dimensions – structural, skill, and ego. Structural Some CEO’s are running businesses that are...
- How to Retain Great People – Part 2
I was recently asked the question “how do you attract and retain excellent employees?”. This entry looks at the second part of the equation. Firstly, you need to make sure that your team members are paid at least at the...
- Mentoring
I received the following question from on of the readers. “Did/Do you have a mentor? What is your opinion on the concept mentoring in the business environment?” I do have a mentor and it is my father. Now the reason...
- Part 1 – How to Attract Excellent People
I was recently asked the question “how do you attract and retail excellent employees?” This entry looks at the first part of the equation – attraction. Almost all businesses have the major issue of attracting new staff unless you are...
- Time Management
Well time management has to be one of my greatest challenges. I am notoriously bad at saying “yes” to most things. However, how do i broadly split my time? The answer, surprisingly enough, is simple – 1/3rd is Board, media...
Recent Comments