Make sure Acquisition Role the list is short (as one of my friends once told me, “a committee should consist of an odd number and 3 is too many”).
Here’s an easy example of a top-level RACI chart that is intended for illustration only:
Applying RACI to the M&A Integration
After I’ve introduced the concept and presented examples let me take my gloves off and tell you the reason why I am an m&a advisory firm advocate of this tool as long as it is me who’s in fact the Integration Project Director:
- The most important reason for failure or success in an integration project is the absence of support and commitment from senior executives. This is why I’d like an executive in the senior ranks to be accountable for every aspect of the integration.
- A person (and just one individual) is held accountable for delivering the essential activity. It is easy to avoid accountability However, when it comes to the context of an M&A integration, it’s vital for someone to stand by the fire in order to complete the tasks.
- I can’t imagine a single integration area where there aren’t inter-functional coordination, interactions, and communication requirements. For instance, if, for example, I’m in charge of an integration into the accounting function I will need to co-ordinate with IT and sales, HR and operations, as well as other duties. I require information from them in order to perform my duties effectively and as a result, they require details from me.
- I’m working and I have to keep important people informed and up-to-date. The most important thing is important people: the minimum information they require, on how much, when and in what way. I’m not in the mood for large-scale meetings; people wasting my time due to being interested and want to know those who lack the information or expertise offering me their ideas or thoughts.
I’ve observed throughout the years that without this tool that is designed and backed by senior executives as the project’s overall leader I’m putting my career as well as the project at risk. Do you think it is m&a advisory difficult to design this tool and secure the approval of the principal participants? Yes! However, is it an important tool to clarify the roles and responsibilities of everyone and coordinating what must be accomplished and by who? An even louder yes!
The integration of all your M&A project activities into a specially designed software like Devensoft can help with various key tasks. You will be able to assign specific elements of the project to the right accountable (R)and accountable (A) individuals and give read-only access to the system to individuals who require consultation (C) and informed (I)on those subjects using easy access controls. Interdepartmental and intradepartmental communications are stored safe in the system. This prevents the loss of important information, and also saves time trying to find answers to questions that will surely come up. In addition you can request to receive, make and update requests regarding critical tasks throughout the project with ease using status updates all from one location. When your M&A project has united in orbit around a single-source-of-truth, you may find yourself wondering what you could have done with the extra time you now have to devote elsewhere, not to mention the absence of headaches.
I have to keep significant people knowledgeable and up-to-date. The most important object is central people: the lowest information they need, on how much, when and in what way. I’m not in the temperament for large-scale conferences; people wasting my time due to being interested and want to know those who lack the info or skill offering me their ideas or views.