Project Management

Efficient Project Team Consolidation in Post-Merger Companies

Nat Schatz

When evaluating the acquisition of a company, many organizations emphasize the financial aspects of the consolidation as part of their due diligence, such as:

  • Impact on sales and compatibility of product portfolios
  • Impact on profitability
  • Post-consolidation synergies
  • Potential costs savings through reduction in overhead and elimination of functional redundancies (such as sales, accounting, general management, etc.)
  • Impact on stock price

In my experience, many aspects of the consolidation are ignored or downplayed when dealing with project execution, such as:

  • Engineering
  • Project management
  • Procurement
  • Construction contracting strategy
  • Cost control and estimating
  • Lessons learned

When these areas are overlooked, the following negative impacts to the company may occur:

  • Inefficiencies in the operation of project management teams
  • Less than stellar project performance
  • Inhibited development of the project management organization, thereby affecting performance on future projects
  • Low project team morale and loss of key personnel

This paper will not deal with all the details of project execution integration, but will concern itself with the major considerations and discuss how to improve the integration process for those areas.

Although this paper primarily concentrates on engineering, procurement, and construction …

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