7 Steps to realize potential merger
For companies cost synergies tend to come quickly. The cost savings can be significant to justify mergers and get most of the management attention during the planning and execution phases of such mergers.
1. Establish the ‘A-Team’ via an IMO. Companies are suggested to hire an IMO (Integration Management Office) to guide the integration strategy.
2. Deal Model validation against true targets. Probe the organizations to develop facts and a marketing plan to answer: Who will be the sales decision maker within a given customer? Will the core of sales transactional or strategic? Will the selling skills include cross selling of products and services? Who many sales cycles will both organizations make use of?
3. Senior Management engagement (roles and governance). Establish clear governance structure and meet regularly to review and make decisions.
4. Preserve and protect actual revenue. Revenue disruption is a failure to resolve lead responsibility for overlapping accounts and market audiences. Sales should operate best with solid state of certainty and clarity in exchange of quota targets and compensation.
5. Communicate. Communicate within all levels of organization and put in practice the 80/20 rule: 80% of our revenues are generated by 20% of our customers.
6. C-level priority sales. Best sales plans focus 80 percent of the effort on the 20 percent of the team. Mergers that reach revenue goals make it a priority to implement a plan to retain top talent. Maintain the 80 percent.
7. Actively manage cultural differences. Legacies kill organizations. Maintain the principle of those differences on the areas in the following order: process implementation, acknowledgement of process and practice to avoid any sort of risks (loss of human capital, loss of organizational identity or the company DNA).