When PM Faces M&A
Key Takeaways from My Experience as a Product Manager in Organisational Mergers and Acquisitions
Over the course of three years, we navigated several business acquisitions during the challenging period of the Covid pandemic. In this article, I’ll share the valuable lessons I’ve learned as a Product Manager from these acquisitions, aiming to help you avoid making the same mistakes.
When a company’s strategic direction involves growth through mergers and acquisitions (M&A), the product team inevitably encounters a significant challenge — how to seamlessly integrate the newly acquired businesses, products, and services into the existing ones. It’s important to note that in terms of product integration, 1+1 doesn’t always equal 2; more often than not, it’s 1+1<2. This is because certain elements, such as core features, must be retained, while others must be discontinued to provide value to both existing and new users.
1 Mindset and Tactics
Embrace a Growth Mindset
Maintain an open attitude towards learning and adapting as you delve into the new market. While the acquired business may share similarities with your existing ones, differences invariably exist. Strive to identify both commonalities and distinctions, approaching the challenge as if you were a newcomer seeking to challenge the status quo.
Encourage innovation and experimentation within your team. Remember that innovation doesn’t necessarily entail radical or entirely new ideas. Any novel solution or improvement to an existing problem constitutes innovation. Develop hypotheses and assumptions, and collaborate with your teams to test them.
Adopt a User-Centric Approach
Place the user at the heart of all product decisions. Whether you’re in the B2C or B2B realm, a customer-centric mindset is fundamental for a PM. Focus on why users would want a particular feature or solution, rather than solely on how it benefits the company.
Continuously validate assumptions with real user data. In conjunction with innovation, it’s imperative to validate both problem and solution assumptions. Test them in a production environment with actual users, and engage in meaningful conversations with users to gain insights.
Foster Collaborative Leadership
As a PM or PO, guide your team while also respecting and harnessing their expertise. Your role may extend beyond guidance to coaching and advocating for your team’s thought processes.
Serve as the bridge between business stakeholders and the development team. At times, you’ll need to manage stakeholders’ expectations effectively.
2 Process and Milestones
Milestone #1 — Understanding the Landscape
Recognise that mergers are intricately tied to culture and people. Immerse yourself in the market context by using the acquired company’s products or services and getting acquainted with their customers. Understand the competitor landscape, market trends, growth areas, and areas of decline through a comprehensive SWOT analysis. Additionally, delve into customer insights and the broader business context while building relationships with key individuals.
Milestone #2 — Initiating Incremental Changes
- Develop an MVP (Minimum Viable Product) strategy with a distinctive point of view based on market, customer, and business context. Seek feedback from both your business and the merging entity.
- Define the value proposition for the “digital offering” with an emphasis on the MVP mindset. Create small wins to test new ways of working and facilitate cultural integration.
- Establish cross-functional teams that span your company and the merging entity, focusing on culture, personnel, and processes.
- Promote a culture of collaboration and openness in alignment with Agile practices, even considering the long-term project horizon.
- Formulate cross-functional working groups with regular meetings and ensure compliance with local regulations.
Milestone #3 — Defining the Long-Term Strategy
Iterate on the MVP based on newly acquired data, emphasising customer acquisition and retention. Don’t overly fixate on optimisations at this early stage. Revisit the product strategy and construct a long-term roadmap.
In conclusion, navigating mergers and acquisitions as a Product Manager involves a multi-faceted approach encompassing mindset, strategies, and structured milestones. By maintaining a growth mindset, prioritising user-centricity, and following a methodical process, you can enhance the likelihood of a successful merger or acquisition integration.
