Post Merger Integration - Typical Reason Why Transformations Fail

Post-merger integration (PMI) is rarely straightforward, but most businesses find ways to make it slower, less effective and more expensive than it needs to be. This helps explain why, in study after study, so many acquisitions fail to deliver their expected value.

Why do deals fall flat? In our experience, it is far easier to build a rationale for the deal than to create a workable plan for transforming two companies into one. Even the most well-reasoned strategy, thoroughly vetted target and comprehensive financial model are of little value if you cannot integrate successfully.

Summary of Typical failures:

Assuming that the pre-requisites are available, the lack of Employee Buy-In and lack of Common Data are cited as key failures across most change / transformations for the reasons mentioned below. However, there is a third Cumulative Effect of Small Problems that can be critical on large transformations

  1. Middle Management Buy-In through support from Leadership is critical

Getting employees on board tends to start with an executive’s ability to set and communicate a vision. In the Oracle/Forbes Insights survey, 51% of executives surveyed cited support from leadership as a key factor in the success of business transformation projects.

  1. Everyone Must Be on the Same Page

Transformation can only be delivered if everyone has access to the same information and is motivated to work toward the same goal. That can only happen if everyone has access to the same data, which is one place.

  1. The Devil Really Is in the Details

Recent studies that reviewed transformation failures found that it wasn’t a big, catastrophic project failure that had brought them down, but the cumulative effect of several small problems that management either hadn’t known about at all, or had found out about when it was too late to do anything

Typical failures associated with Supply Chain Merger Transformations

  1. Choosing the wrong assessment and measurement metrics,
  2. Trying to consolidate systems and infrastructure to soon
  3. Lack of detailed planning covering Integration, Optimization and Acceptance
  4. Defining the end state but not the roadmap to get there
  5. Failing to consider the level of disruption

Typical failures associated with Post Merger Integrations


  1. Lack of Pre-Planning
  2. No Formal Integration Strategy
  3. Failure to Prioritize Workstreams
  4. Lack of Senior Leadership
  5. Poor Communication Planning
  6. Poor Synergy Program Management
  7. Inadequate Resourcing
  8. Lack of “End State” TransitionL
  9. Poor Organizational Planning
  10. No Formal Measurements

Typical failures associated with Transformation

  1. Lack of executive sponsorship
  2. High costs
  3. Lengthy timelines
  4. Intimidating process
  5. Lack of agility
  6. Poor communicationP
  7. Unclear goals
  8. Misaligned talent

Typical failures associated with Change Management Strategies

  1. Human element (resistance to change from middle management)
  2. Strategic Alignment
  3. Goals.
  4. Objectives
  5. Strategies
  6. Tactics

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