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Post-Merger Operating Model

Deal closed. How will the business run?

ForCFOs and COOsIntegration leadsFlow owners on both sides
An integration team reading how both companies run the same work
The deal.
Combines structures and systems.
The synergy case.
Depends on how the combined business runs.
The decision.
Made flow by flow, before structure fixes it.
EXHIBIT 1 · TWO COMPANIES, ONE FLOW, READ THE SAME WAY
ACQUIRER · ORDER-TO-CASH
GET
Portal and EDI
SORT
Routed by region
DO
Regional fulfillment
PROVE
Invoice on shipment
IMPROVE
Quarterly review
ACQUIRED · ORDER-TO-CASH
GET
Portal and EDI
SORT
Routed by product line
DO
Regional fulfillment
PROVE
Invoice on acceptance
IMPROVE
Quarterly review
Same five functions. Two ways of running SORT and PROVE. The combined business has to choose one, deliberately.
Why it is no longer optional
The deal has closed. How will the combined business actually run?

Integration plans combine structures, systems and targets. The synergy case depends on deciding, flow by flow, how the combined business takes in, routes, does, proves and improves its work.Only 55% of acquirers had program governance, 53% had synergy targets and 43% had a tracking process in place.PwC, M&A Integration Survey (2023)

The integration question

Two operating models have to become one

Integration plans combine structures, systems and synergy targets. Underneath them sits a harder question: how will the combined business take in, route, do, prove and improve its work? Each company has its own answer, flow by flow, and the two answers rarely match.

The synergy case depends on choosing. Where the two companies run the same function differently, the combined business has to decide which way it will run, deliberately. Averaging the two, or defaulting to the acquirer’s, leaves the case without an operating basis.

Integrate the flows, not only the structures.

Two ways to integrate.

By structure
Combine the org charts, pick the systems, set the synergy targets. The flows underneath keep running two ways under one name.
By operating model
Read both companies on one coordinate system, find where they differ, decide how the combined business will run each function, then combine the structure to match.
Day one

What your team can do after training.

Foundation teaches the method on the Meridian case, with each area applying it to its own work. Practitioner Intensive applies it to one live transformation.

01Foundation
Read two operating models side by side.
Lay two companies’ flows on the same five functions, practiced on the Meridian case.
02Foundation
List the operating decisions.
Find every place two companies run the same function differently.
03Intensive
Decide before structure fixes it.
On your live integration, choose how the combined business will run each function, then set the structure.
04Intensive
Track synergy against operating change.
For that integration, measure what changed in the work, not only org-chart completion.
A new way to use the training
Run a joint cohort in the first 100 days.

People from both companies take the Foundation Course together. They learn one language for the work before their teams are merged.

Outcome: The synergy case rests on decided operating choices. Learned through the Meridian case in Foundation; applied to one live transformation in the Practitioner Intensive.

Where integration breaks
Two companies rarely fail inside their teams. They fail at the new seams between them.

Every place where one company’s finished work becomes the other’s intake is a seam no one owned before the deal.

Questions

When should operating-model integration start?

Before the integration plan fixes the structure. Once teams are combined, differences in how they run each function become friction rather than choices.

Who should take part?

Integration, finance and the leaders of each flow on both sides: the people who will otherwise read the combined model differently.

Where does ZBTOS teach this?

The Practitioner Intensive works one explicit live transformation with one cohort. An integration is a natural case. The Foundation Course gives the combined teams one way to read the work first.

Joint cohort · first 100 days
Teach both companies one language for the work before teams merge.
Plan a joint cohort →Build the business case ›

Not ready for a course? Get the ZBTOS Briefing › New reads on integrating two operations into one.

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