3 Key Steps to Design a Unique Onboarding Playbook
It comes as no surprise to the many of us who are engaged in the strategic orchestration of venture diversification that this process is remarkably similar to the engagement of our own personal relationships. We, whether in business or as individuals, focus tirelessly on the front-end due diligence process and tend to lose our focus once the relationship has been affirmed. We spend a great deal of time conducting preliminary analysis to ensure the strategic partnership is equitable to the investment and that it will yield the expected returns; however, often failing to continue this level of focus throughout the “post-engagement” phases.
In both cases, there are teams of experts – financial, legal, tax, strategic intermediaries, and the like, advising and weighing in on how the planned integration will add value to the whole and undoubtedly to the longevity of its success. What many of us ignore, however, is the critical importance of how to properly integrate the positive synergies of the two, once independent entities, to ensure these desired and forecasted results.
From a business perspective, this is why more than 70% of merged organizations cite an improper or lacking integration plan as the contributing factor to lost revenues, high turnover of key executives and staff, and a decline in organizational morale.
Research has shown, that if done correctly, an integration plan should begin as early in the process as possible (this is typically on or around the issuance of a formal letter of intent). In doing so, it allows the integration plan to be supported in real-time by the outcomes of the strategic due diligence which is a tremendous advantage.
When executive leaders, or implementation managers, defer the development of this plan until deal closure, or “day one”, it creates a significant backlog of tactical items which often results in a rushed and ineffective first 100 days, or commonly referred to as “the takeover period”. To ensure a level of continuity of priority between the originating phases of the strategic planning and due diligence process to the post-merger integration, an onboarding playbook has proven to be an effective stopgap measure.
An onboarding playbook focuses acutely on organizational realignment, process and systems integration, synergy tracking, and product/service and customer realignment. It is initiated as early as the target has been identified. It also transforms the historically archaic “project plan” approach and creates a dynamic process of ensuring a well-orchestrated and timely integration effort.
Stonehill has adapted the traditional onboarding playbook by utilizing Design Thinking to create a unique approach to an effective post-merger integration (PMI) plan. And to no surprise, it all starts with empathy.
Empathy. The Stonehill Onboarding Playbook begins with an understanding of empathy with each key stakeholder. From the owners to key management, to suppliers and downstream media outlets, this comprehensive approach is a uniquely tailored method to communication, change management, performance management, and integration. From a lens of empathy, the integration manager can understand the current state from an enriched perspective prior to integration which yields lower rates of turnover, and at a minimum, consistent rates of productivity.
Organizational Realignment. As the plan departs from the “empathy” phase, the onboarding playbook moves quickly into organizational realignment with detailed plans on navigating the proper protocols of management changes, reporting structure modifications, and edits to various roles and responsibilities. A key component within this phase is to understand the equity between financial and emotional (i.e., cultural) risk profiles during the early phases of an integration plan (during the “takeover period”). Implementation managers need to understand that financial returns are predicated on cultural adoption and people-centric change management approaches. When we lose sight of this – revenues suffer.
Change Management. The third component of the onboarding playbook centers around change management and true integration. From systems, policies, procedures, modifications to products and/or services, the onboarding playbook is a guidepost on how to run an effective implementation plan while meeting the targeted metrics and objectives of executive leadership. These tactical and well-orchestrated guides are intended to serve not only the most seasoned PMI individuals but also those who are running their first integration – in short, an onboarding playbook is a critical tool that any individual can rely on, regardless of their experience in integration work.
To request an onboarding playbook or schedule a consultation with our team, please contact us at info@stonehillinnovation.com or call (813) 444-1984. As an organizational development consulting firm, we are here to assist you with your needs and ensure a smooth integration process.