CONFIDENTIALThisreportissolelyfortheuseofclientpersonnel.Nopartofitmaybecirculated,quoted,orreproducedfordistributionoutsidetheclientorganizationwithoutpriorwrittenapprovalfromMcKinsey&Company.ThismaterialwasusedbyMcKinsey&Companyduringanoralpresentation;itisnotacompleterecordofthediscussion.March1999IntegrationManagementPMMPractice2INTEGRATIONMODULECONTENTSPAGEIntroductory/Explanatorymaterial•Descriptionofcontents•Thethreelevelsofdetailintheintegrationmodule•Thefourthlevelofdetail:integrationmoduleinterfacewithothermodules•ThePMMwheel:planningandexecuting•Thethreeplansintheintegrationmodule•Genericmergerdecisionmap•GlossaryofkeytermsusedintheintegrationmoduleTheActionPlanTheIntegrationModulePMMPrinciplesandKSF’s3Addressup-frontprioritiesThesearekeydecisionsandactionswhichneedtobetakenbytopmanagementintheearly/first30daysofthemergerBuildingmergerplatform&planningUpfrontprioritiesINTEGRATIONMODULE:DESCRIPTIONOFCONTENTSExecutionFosterplanningexcellenceTheinitiativeforplanninghaspassedtotheintegrationteamandmergerteams.Toplevelmanagementstillapprovetargetsandplans,however,andputinplaceappropriateperformancemanagementprocessestoensureplanningexcellenceMonitorexecutionTopmanagementmonitorstheprogressofexecutioncarefully,interveningwherenecessarytomakekeycontingentdecisionswhichmayariseCEO-SteeringcommitteeIntegrationmanager/teamMergerteamsMcKinseyteamsTakefirststepsOnceanintegrationteamhasbeenputinplace,theinitiativeforleadingthemergerpassestoit,andintheearlydaysitmustlaunchmergerteamsandplanmergeractivitiesatadetailedleveluptoapprovalTakefirststepsOncemergerteamshavebeenlaunched,thereareanumberofpreliminarystepstheycantakebeforethestartplanningCounselandproblem-solveMcKinseyteamsprovidecounselingtokeyfiguresintheintegrationonthefullrangeofmergeractivities,leveragingfirmexpertise,andproblem-solvingwherenecessaryPrepareforDay1TheintegrationteammustcoordinatetheplanningeffortsofthemergerteamsandbuildanexecutionplatforminpreparationforDay1.TheintegrationteamisthenervecenterofthemergerprocessatthispointPlanMergerteamsmustundertakethebulkofintegrationexecutionplanningandbottomuptargetsettingDriveexecutionTheintegrationteamdrivesmergerteamstoexecuteplans,focusingonhighpriorityandcriticalpathactivities,andactingasthecommunicationsandtrackingcenterofthemergerprocessExecuteMergerteamsmobilizethemergingorganizationstoexecuteintegrationplansAnnouncementDayDay14THETHREELEVELSOFDETAILINTHEINTEGRATIONMODULETheintegrationmoduleoperatesatthreedirectandafourthindirectlevelofdetailOnepageoverallintegrationworkplanwithkeyactionsForeachkeyaction,achecklistofsubsidiaryactions,listingdeliverables,durationsandpredecessorsForeachsubsidiaryaction,guidelines,analyses,bestpracticeinsights,andexampleswhereappropriate25KEYACTIONSCHECKLISTSOF122SUBSIDIARYACTIONSGUIDELINES,ANALYSES,BESTPRACTICE,TEMPLATES,EXAMPLES5Addressup-frontpriorities•Tailoredmergerdesignforfullvaluecapture•Organization•Humanresources•Communications•Regulatoryapproval•OrganizationalandculturalalignmentBuildingmergerplatform&planningUpfrontprioritiesTHEFOURTHLEVELOFDETAILINTEGRATIONMODULE:INTERFACEWITHKNOWLEDGEBASERelevantknowledgemoduletitlesareindicatedExecutionFosterplanningexcellence•SynergiesMonitorexecutionCEO-SteeringcommitteeIntegrationmanager/teamMergerteamsMcKinseyteamsTakefirststepsTakefirststepsCounselandprob...