Post-merger integration

We designed and delivered a post merger target operating model for a UK challenger bank merging with a large African financial institution

The challenge

Our client, a UK challenger bank, announced it would be acquired by a large African financial institution. Therefore they needed help to rapidly initiate and mobilise a combined integration programme as well as determine the change requirements and target state for the combined business.

The Integration Programme had two key objectives:
  • Achieve regulatory and cultural alignment between the acquiring institution and our client at deal completion – Day 1
  • Achieve a technical integration with the acquiring institution’s UK motor finance subsidiary – Day 2

For Day 2, PEN was asked to support the Integration Programme by leading the definition of the Day 2 Target Operating Model (TOM).

A key aspect of the challenge was defining the change required for Day 2 in parallel with the initiation of the programme and immobilisation of its workstreams.

Our approach

Working with the Integration Programme Director, Steering Committee and Programme Working Group, our approach to the work was split into 4 phases over a 14 week period.

Each phase required close collaboration with both programme and business team members to enable completion within the timescales while maintaining high quality of outputs.

Using previous insights and industry best practice from other integration and TOM engagements, we developed a current state view of both businesses operating models to provide a baseline for change. 

  • Running workshops with key business function SMEs, we identified requirements for integration of the businesses for Day 2 and their impacts
  • Drafting and validating the Day 2 operating model with SMEs and senior stakeholders
  • Supporting programme workstreams to embed the TOM requirements into Integration Programme plans

The outcome

The Day 2 TOM was completed on time and provided the programme with a consolidated view of key information (such as impacts on capabilities, propositions, processes, business structures, people and technology) and was fully integrated into programme plans. The resulting documentation led to a number of outcomes:

  • Enabled smooth path to gaining Board approval to proceed with the TOM recommendations
  • Aided the communication of a holistic view of change required to programme and business stakeholders
  • Sped up the development and completeness of workstream plans

As a result of the operating model work, we were asked to continue to support the programme including the development of ways of working and changes required to the governance framework.

Key to our success was our experience of delivering similar projects, having tools and techniques readily available, as well as bringing the energy, pace and pragmatism to gain consensus.