Information Technology: Charters from 4 M&A Integrations

Excerpt from First IT Charter

Objectives (Primary integration objectives to be achieved post close )

Enable realization of synergies – business processes, applications and infrastructure, locations, people
Adhere to IT integration timeline for application migrations, Infrastructure Migrations, Office Migrations
Develop IT Organization to support the new Acquirer IT Applications and Infrastructure
Identify cost savings timeline and end state run rate for IT
Identify key IT capabilities required for Day 1 Operations

Scope (Primary categories, systems, processes corporate or functional areas to be addressed in team’s plan)

Support new business model associated with Western and Eastern Operations, Real Estate, Corporate Functions
Scope focused on Day 1

Day 1 Mandatories

Finance: Consolidations, third party reporting, banking

HR: Payroll, Benefits, HR Data, Other Employee Services

Core IT Infrastructure:

Email / Calendaring
SharePoint (sharing documents)
Active Directory / GAL – name, phone, email
Instant Messaging
Network Integration (specify what’s needed)
Badging as required for any new employees to building
Safety Training: Access to the system required
Delegation of Authority: Law Department (SharePoint)
Contracts / Vendor Mgt. for IT and Corp Contracts– TBD Day 1

Retain key IT employees

Issues/Risks

Question: Re-location of Acquired Co HQ Team
Vendor Costs and costs for applications – approval to share
People -- attrition: Legacy knowledge of critical applications
Day 1 Deliverables – pick the have to haves vs. nice to haves
Not having enough resources to do the IT work. We will need significant outside investment to get IT work done
Adequate change management, training, communication as we make system changes

Cross-Team Dependencies

Change Management and communications with HR, Finance, and new Acquirer ...