Driving day 1 readiness
Identify and effectively manage mandatory requirements
Even the potential of a merger and acquisition, joint venture or divestment type activity in a firm can be a major distraction from the day to day running of the business. Much effort is required in preparing for such ventures including negotiations, due diligence and understanding legal and regulatory requirements and constraints.
These programmes are the most complex initiatives that organisations will undertake. By their very nature, they require delivery within the tightest of timescales using a wide range of professional support. For these reasons, it is very easy for organisations to let costs run out of control, particularly if clear objectives are not set and monitored. Having an effective framework in place to support such programmes can help towards ensuring a successful day 1.
Start communicating early
With so many people to manage and such a tight time frame to work within, it is important to set up communication systems and processes as soon as possible. This then can help set the tone and pace of the activity and also to create a record of the programme for knowledge capture purposes. In practice, it can also be a useful method of supporting handovers as the programme moves to different phases and will be a place that new members can get up to speed.
- Set up a website and regular communication channels
- Encouraging feedback and questions
- Report on success stories
Identify mandatory requirements for Day 1
Establishing legal and regulatory requirements will be one of the first and main activities of the management team. These investigations need to clearly identify if there are any show stopping issues. Additionally, at this stage, complete clarity will need to be achieved on what will need to be in place on day 1 for the deal to go through.
- Legal and regulatory requirements
- New organisation structures
- Financial accounting and management handover
- Health and safety considerations to ensure a safe transition
Plan to day 1 and beyond
So, now all the mandatory requirements have been identified. Then, this is the time to plan in detail the period to day 1. Given that so much needs to be achieved in such a short time, effective planning is required to ensure that all objectives are met. In particular, any critical paths that could cause delays will need to be highlighted to management.
- Prepare detailed plans to day 1
- Identify any critical paths
- Track progress against the plans
This will enable any road blocks to be quickly identified and removed.
Establish quick wins and longer term integration targets
The benefits of such integration programmes are only truly achieved when the new whole is greater than the sum of the individuals. Identifying quick wins is a great way to get the momentum going for meeting integration targets. Put in place detailed integration plans that can be handed over to the new management team for ownership and implementation going forward.
- Plan in detail synergies that can be realised within 3 to 6 months of day 1
- Prepare high level plans for longer term integration benefits delivery
- Handover these high level plans and accountabilities to day to day operation teams
Managing risks and issues
Good management of risks and issues is required in any programme, however it is particularly critical in the delivery of mergers and acquisitions initiatives. It is best to use a pragmatic approach to risk and issues management that enables the focus to remain on mitigation.
- Keep a record of all issues raised
- Assign accountabilities and actions for mitigating the risks
- Track progress against both risks and issues
Ideally, incorporate the mitigation actions into the other plans so that they can be monitored at the same time.