One of the most critical challenges in any PMI is choosing the design of the new organization. This decision has powerful implications for the operating model and culture of the combined entity. It’s also critical to maintaining high morale and confidence during the integration effort.
Organization design must happen quickly. The time period in which the merging organizations can function in parallel is limited, and many potential synergies won’t be realized until the businesses are functioning as a single entity. The longer a company puts off design decisions, the more it will foster ambiguity about lines of authority and uncertainty about people’s futures. The result is often low morale and engagement, at best, and attrition and loss of talent, at worst.
To move the process along quickly and effectively, BCG has developed an approach called Rapid Organization Design. It has four components: