Process Overview
A Trusted Advisor to the PE Community
Disruptive Innovations’ PE Due-Diligence Module is used by Private Equity firms to assess the viability of a potential acquisition. The module can be used for net-new acquisitions, or for evaluating a potential integration with existing portfolio companies. Our team of experts evaluate a given organizations technology products and platforms, IT Functions (People, Process, Technology & Methodology), costs and potential security concerns (risks & vulnerabilities) to better understand whether the transaction makes sense. In the case of a potential merger, the deliverables also include an assessment of all potential synergies, as well as a merger thesis.
Our Approach:
Key Deliverables
Current State Assessment
Assessment of Technology Platform and IT Function at each component company
Comparative Assessment
Normalized side-by-side assessment of capability and fit of each component and company function with future technology needs
Future State Model(s)
Recommendations regarding "go-forward" technology strategy and roadmap for integrated company
Synergy Assessment
Estimation of annual cost savings potential from technology synergy opportunities
Issue Resolution Plan
Identification of key issues requiring future assessment and recommended next steps in completing technology integration planning
Security Assesment, PEN Test & Social Engineering
Identification of key security concerns, risks and vulnerabilities and recommended next steps for mitigating risks
Steps to Success
Key Requirements for Execution Success
Transparency & Complete Face Base
- Re-baseline demand (requirements, categories), supply (resourcing, skills, cost), and productivity targets (response, resolution)
- Agree KPIs, definition, format, tools/process to measure & report
Committed Leaders (Client + Vendor)
- Demand/install experienced leaders (replace existing if necessary)
- Make program success their personal mission = few, simple, unambiguous objectives, accountabiliies, incentives/rewards
Plan + Playbook
- Formalize a detailed, operational turn-around plan with ambitious, clear-cut, realistic, mutually committed milestones, and stick to it
- Define clear rules of play (strong-form management cadence)
Active Governance
- Enact strong-form management cadence: Review facts, make decisions (e.g. ARCs/RRCs, penalties), execute; repeat
- Reinforce through (E)LT commitment, oversight, coaching, support
Execution Management
- Exhibit/demand/encourage full command of fact base at all times, tenacious attention to detail, relentless execution, process discipline
Experts in Organizational Change Management
A successful integration must also account for proper OCM levers and interventions. Disruptive Innovations analyzes the impacts and custom-tailors an integration plan for the organization:
Business Impact Management
Proactively identifying and managing clearly defined impacts to the Business and IT
Stakeholder Engagement
Proactively identifying and managing clearly defined impacts to the Business and IT
Change Strategy & Implementation
Tailoring, scaling, and implementing a fact- based OCM strategy and plan
Culture & Leadership
Setting cultural direction and building effective leadership and sponsorship
Organization Design & Performance Management
Equipping and engaging key stakeholders to accelerate commitment and adoption
Communication
Ensuring accurate timeline communication to provide clear expectations, instructions and motivation to all stakeholders
Readiness & Adoption
Measuring readiness and taking action to accelerate speed and level of adoption
Outcome Management
Linking people- and process- performance to achievement of ROI
Our (3) Measurable OCM Integration Goals
Ownership
Business & IT Leadership and the combined workforce take appropriate ownership for ensuring success
Adoption & Commitment
People performing new processes/roles using new systems and tools are skilled and committed to successful uptake
Alignment
Jobs descriptions, performance metric and rewards are aligned to required new behaviors and outcomes