Improving Merger Outcomes Through Establishing a Program Office [hidden]

by admin on November 21, 2012

Client: Large Drugstore Chain

One of the nation’s leading drugstore chains with annual revenues of $17 billion, over 3,000 corporate-owned stores and approximately 70,000 associates.


  • The client was embarking on a major merger affecting approximately 2,000 drugstores nationally.
  • Successful integration of the acquired stores required strong leadership, a robust information systems infrastructure and a supply chain capable of supporting a significant increase in the number of stores.
  • For the acquisition to be realized, the organization had to cooperate fully and promptly with Federal Trade Commission (FTC) requests in its review of the acquisition under the Antitrust Improvements Act.

RMK Solution

  • Established and helped staff a corporate-wide program office (PO) to ensure overall alignment with the enterprise acquisition strategy, project adherence to management best practices, and effective financial and executive-level reporting in response to FTC inquiries.
    • Functional areas affected by the program office included information technology, finance, legal, merchandising, pharmacy operations/services, store operations, supply chain, construction, human resources, accounting, organizational change management and internal assurance/loss prevention.
  • Provided guidance to project managers and directors in the business units; a project process methodology; and best practices and project management tools to consistently capture and report on project conditions, progress and predictability.


  • The creation of a Program Office ensured that merger activities continued in a methodical, consistent and predictable manner within the specified time frame.
  • The client grew to approximately 5,000 drugstores, providing scale comparable to its major competitors and enabling it to compete more effectively.
  • The Program Office also institutionalized standards for future M&A activity.

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