Shifting Focus to Communication-Centric Solutions
Paul Skorupskas, unsplash
Here’s a recap of where we are as we look for a faster, better and cheaper way to execute M&A transactions, particularly post-close activities:
- The real driver of execution success, individual contributors, was discussed in Post #1.
- Post #2 described the difference between things that are complicated (known) and those that are complex (unknown) with the execution of M&A transactions being more complicated than complex.
- And Post #3 identified several different ways miscommunication between and among the contributors can be a result of self-inflicted noise.
This post is about changing the perspective of what is really needed to execute problem-free M&A transactions by examining the inherent deficiencies that reside in a lot of initiative management approaches and how they stand in the way of optimizing the process for all.
The Big Idea
Alex Andrelion, unsplash
In most instances, contributors know what they need to do and when and what they need to do it. Traditional management approaches fail to efficiently and effectively support those needs.
From Tasks to Deliverables: Rethinking Planning
Alex Lion, unsplash
Most traditional M&A integrations are built around the concept of task management. Planning amounts to a top-down description of what work needs to be done, who needs to do it, and estimates of how long it will take. Sometimes the people who are actually doing the work are consulted during this process, but often they are not. Why? Because the time, cost and bandwidth constraints of executing a deal, and gaps between the planned tasks and reality, necessitate taking short-cuts, like getting buy-in that a plan is sound.
Continuing with how traditional planning is done: along with who, what and “how long”, there is usually time and money spent on identifying any dependencies that will form a task-centric critical path. From those dependencies a model plan is created on which the future is hoped to be predicted and controlled.
For many initiatives this technique has proven to be successful, despite the inherent inaccuracies in task identification (completeness and granularity inconsistencies), effort estimation errors (timing and resource allocation), and shifting timelines and priorities once the initiative is underway. Not an insignificant fact is that using this approach comes with a high, continuing maintenance cost for determining interim status which is needed to update and resolve continual disconnects between the plan and what’s happening on the ground.
The Missing Component
Pierre Bamim, unsplash
However, managing this way puts all the focus on coordinating and monitoring activities, when what truly is needed are not the tasks per se, but the outcome or deliverables that happen as a result of the work. You might say this is an obvious fact, and it should be. Yet the way most of the planning tools in M&A initiatives are structured and used, they rarely place any specific emphasis on deliverables, out-of-the-box. It is, more often than not, an unspoken assumption that there is a deliverable at the completion of a task or tasks. But that’s not the critical flaw.
The most important thing traditional approaches and their supporting tools lack, is the acknowledgement that that deliverables must be shared or exchanged between individual contributors for them to have value. This exchange is broadly assumed to take care of itself, and given that most transactions do complete, the assumption is not entirely wrong. Unfortunately, it’s usually accompanied with pain, frustration, and added cost and time.
But it doesn’t have to be that way.
Proactive Communication Between Colleagues
Kraken Images, unsplash
By shifting the focus from tasks to deliverables, and adopting protocols and artifacts that ensure efficient and effective communication of those deliverables, the necessity to perpetuate the low-value administrative burdens of task identification, dependency detection, and on-going plan maintenance disappear.
Here’s how this approach optimizes M&A integrations:
- Intentionally managing deliverable communication, not tasks, ensures alignment between those that are producing the deliverables and those that need them, dramatically reducing rework and delays.
- When contributors receive all of what they need to do their part, on or before they need it, confusion and frustration are eliminated, and speed is increased.
- By purposely eliminating the noise and irrelevant distractions inherent in traditional approaches, contributors are able to better focus on getting their respective parts done as efficiently as possible, within the context of their individual workloads.
Summary
A communication-centric approach guarantees alignment between individual contributors, ensuring that deliverables are exchanged smoothly and in a timely manner. This shift from task management to deliverable management, especially at the IMO level, not only empowers individual contributors, but it also greatly reduces the effort necessary to keep the initiative on schedule while eliminating unnecessary friction that typically hampers M&A integrations.
Now that we’ve explored how a communication-centric approach can be the heart of M&A success, the next post will formally introduce CRISP™, a communication-centric method, purpose-built for the unique characteristics of executing M&A transactions. In Post #5, we’ll dive into the foundational principles of Accountability, Clarity, and Efficiency that guide every step of the CRISP™ Method and ensure smooth, seamless integrations.
Thanks for reading! If this post has sparked any new ideas or questions about how to optimize your M&A integrations, I invite you to join one of my live intro sessions. Each session is 30 minutes and limited to 2 participants for an interactive, in-depth look at how the CRISP™ method can make your next integration faster, better, and more efficient.
📅 Register here -> CRISP™ Intro Sessions
✉️ Want to stay updated on future posts and sessions? Opt-in for exclusive updates: CRISP™ site
Let’s continue the conversation and dive deeper into a transformative approach to successful M&A execution!
CRISP™ is a pending trademark of Exertus, Inc.
