Integration - Post Acquisition

Written by Michael McAlary

Service Areas: Post Acquisition Integration

Industry Sector: Financial Services – Wealth Management

Situation/Responsibility

Responsible for managing the integration of a Fund Manager. A number of work streams, e.g. Investments division, communications – customer and institutional investors, and distributors, e.g. financial planners needed to be managed to ensure a smooth integration.
A key goal of the integration was to retain all customers.

Risks/Challenges

The main challenges were to:

    • Manage the different personal drivers of a number of executives, e.g. incentive “hand-cuffs”, redundancy timeframes while others were driven by institutional needs. In consultation with the Human Resources area, a communication and action plan aimed at addressing these issues was developed.
    • Manage the integration of differing organisational cultures. In particular, one of the parties operated at a very high level, whereas the other operated on a detailed procedural level. This created a project disconnect in respect to the management approach/documentation that was required to manage without seriously impacting on the project delivery and the benefits realisation.
    • Deliver a new fund management structure that dealer groups and institutional investors found acceptable. This was critical to managing the risk of a major Funds Under Management (FUM) outflow.

Achievements

The key achievements were as follows:

    • The loss of customers was minimised.
    • The project was successful in meeting key dates, e.g. completion date and all other key activities, e.g. fund transition, including developing an institutional communication strategy.
    • On an operational level, all key current and proposed workflows in the combined environment and their estimated timeframes for all employees were successfully documented.
    • A new organisation structure was agreed and implemented including determining where those activities should reside in the new combined structure. This task included identifying and removing duplicate activities and establishing new standard processes according to the project timeline.