1. POST MERGER INTEGRATION (PMI) TEAM TRAINING

2. Introduction

3. Best Practices on Successful PMI (in descending order of criticality) Appoint a strong executive to clearly lead the integration process Compress change duration by taking bold strokes early Provide for real incentives to reach targets Set out credible milestones and maintain pressure for progress Move quickly with regard to personnel changes Build a robust plan detailing integration activities Emphasize the transfer of critical capabilities to capture value Ensure senior management involvement in integration activities Adopt best practices in key functions from either the acquired, acquirer, or some external source Get task forces (with people from both companies) interacting as soon as possible (Source: Booz Allen survey of over 500 successful and unsuccessful deals)

4. Framework For PMI Value Creation Framework What The Vision How The Architecture Who The Leadership What: The Vision How: The Architecture Who: The Leadership What is the vision for the new enterprise? How will value be created for customers & employees? How will the new enterprise achieve its objectives?  new capabilities  new products  new markets What parts of the business should be integrated? At what level in the business should change occur? At what pace should the integration proceed? What capabilities should be migrated, shared, and built upon? What operational and overhead savings can be obtained and how do they fit with specific targets? Who leads the process (overall and day-to-day)? How is the change created and managed? What are the roles of the CEO and key executives? How is participation between the two companies balanced? What level of resources should be dedicated to the process? How should culture differences be managed?

5. Three Elements Necessary For PMI Driven Change Elements Present VisionArchitectureLeadershipOutcome Successful post-merger integration Change isn’t cascaded throughout both companies Or at all levels No focus: new enterprise lacks direction Chaos: no process for integration An academic exercise Bureaucracy Empty charisma

6. 6 Critical Success Factors

7. Elements of a Vision Mission Core Values And Beliefs Distinctive Capabilities Fundamental Purpose Expectations About the Future Environment A set of tangible goals and actions Basic precepts that reinforce culture, values, and purpose A set of competencies that enables the delivery of an organization’s unique value A definition of the value that the company and its employees create and deliver A common understanding of the future Know Where You Are Going Overall and the Extent to Which the Merger Helps Fulfill the Vision

8. Extent and Pace of Integration Accelerated Slow Pace of Change Type of Business DiverseSimilar Cautious Aggressive Equal Unequal Relative Size of Companies

9. Bias Towards Speed

10. 10 Functional Considerations SOURCE: 2009 Post Merger Integration Conference Survey (New York and San Francisco combined)

11. 11 THIS IS ONLY A PARTIAL VIEW OF THE PMI TRAINING COURSE. THE NEXT 23 PAGES OF SLIDES AND VIDEOS ARE INTENTIONALLY NOT SHOWN. THE FULL UNRESTRICTED COURSE IS AVAILABLE TO BOTH 2-DAY AND ANNUAL SUBSCRIPTION MEMBERS ONLY FOR DOWNLOAD AND REUSE.