M&A Information Technology Best Practices

Chapter 23

IT Program Governance during the Deal

John Uccello

Delivering on the intended benefits and synergies from the combined organization requires a significant degree of planning from an information technology (IT) perspective. Additionally, these activities must be in compliance with the conditions of the agreement and applicable federal laws on pre-merger work. The establishment of a program governance structure, as allowed by law, comprised of IT participants from both companies, can enable effective controls with specific lines of communication and responsibility to build the foundational program and help achieve the IT objectives of the deal.

The high-level activities associated with the establishment of an effective IT program during the deal are shown in Exhibit 23.1.

Exhibit 23.1 IT Program Governance Activities

Activity	Purpose
Establish Governance Model	Define the roles and responsibilities, reporting relationships, and governing tools to control the program in a structured manner.
Establish the Program Management Office (PMO)	Establish the structure, detailed execution plans, tools and templates, and reporting cadence of the PMO. Engage team members and launch the program.
Execute the Plan	Manage the day-to-day execution of the program to plan for Day 1 as an integrated IT organization.

Establish Governance Model

The first step for designing the IT planning program across the two organizations is to define what the governance model will look like. This ...