PfMP study materials
PfMP study resources

Post-Merger Communication Breakdown and Leaked Stop Decision

PfMP · Put your knowledge to work in context.

All case studies

Post-Merger Communication Breakdown and Leaked Stop Decision

A utility company merged two portfolios after an acquisition. The combined portfolio has 44 components, two portfolio offices, and two reporting lines that were never fully integrated. The executive committee receives a 60-page monthly pack four days before its meeting; members say they read only the first three pages. Component managers submit status in three different templates. A stop decision on a $12 million billing replacement leaked to the vendor before the affected sponsor was told. A post-merger survey shows 68% of component managers do not know who has authority to approve a scope change under $250,000. The newly appointed portfolio director has one quarter to stabilise, and the CEO wants "one version of the truth" at the next board meeting. Two executive sponsors are in open disagreement about the billing replacement's future.

1. Design the communication approach for the first 90 days. What must change first, and why?

Read the worked answer

Sequence by risk, not by tidiness. Three issues are active: an external leak, an unresolved escalation between two executives, and an authority vacuum affecting 68% of component managers. The reporting pack is the least urgent even though it is the most visible.

First 30 days:

  • Publish a delegation matrix with dollar thresholds for scope, schedule, and funding changes, signed by the CEO. This resolves the authority ambiguity fastest and removes the daily escalation traffic; it is a one-page artefact, not a project.
  • Install a decision communication protocol: for each decision type, a named notify list, sequence, and timing - sponsor first, then legal and contracts, then the vendor through a single named contact. The leak happened because no sequence existed and because the sponsor was excluded, not because someone was indiscreet.

Days 30–90:

  • One-page executive summary, decision asks and exceptions first, appendix for detail, issued seven days before the meeting so it can be read. A pack that arrives four days out and is 60 pages is functionally unread; shorten it and move the release date.
  • One status template with defined fields and RAG criteria.
  • Cadence: weekly portfolio office, monthly executive committee, quarterly board, plus targeted stakeholder plans for the two disagreeing sponsors.

Measure adoption, not satisfaction: template compliance, decision cycle time, and how many issues reach the executive committee already resolved.

2. How should the portfolio director handle the disagreement between the two sponsors on the billing replacement, including the vendor relationship?

Read the worked answer

This is a governance failure presenting as a communication problem. Two sponsors with unresolved positions will keep generating conflicting messages to teams and suppliers no matter how good the reporting becomes.

Force a decision, do not mediate indefinitely:

  • Get both sponsors to state decision criteria in writing - benefits, risk, cost, contractual exposure - and produce a joint options paper against those criteria. Public criteria make the eventual decision defensible to the losing side.
  • Time-box it: a decision at the next portfolio board, with escalation to the CEO if unresolved. Ambiguity past a quarter becomes the portfolio's default state.
  • Record the decision and the dissent. The dissent is useful history if the decision later proves wrong.

Vendor handling: name one portfolio contact; check the contract's suspension, notice, and change-of-scope terms before any further discussion; issue a holding message that is factual and non-committal - decision under review, date by which it will be communicated. No scope variation or verbal assurances in the interim.

The leak has already cost credibility with that supplier. The recovery is a predictable single channel, not an apology tour. If the vendor has already been given informal assurances by one sponsor, surface and correct them explicitly.

3. What does "one version of the truth" actually require before the next board meeting?

Read the worked answer

It requires one register, one set of definitions, and one owner - not a new tool. Boards rarely disagree about the software; they disagree because two reports define "amber" differently.

Minimum viable truth by board date:

  • Consolidate to a single portfolio register with mandatory fields: component, sponsor, benefit owner, baseline cost and date, current forecast, status, top risk, dependency, next gate.
  • Publish explicit RAG criteria tied to schedule and cost thresholds. Status becomes a calculation, not a mood.
  • One benefits register separating claimed from validated benefits.
  • One change log, so re-baselines are visible rather than absorbed.

Ownership and reconciliation: the portfolio office owns the register; component managers supply data to it, not around it. Discrepancies are resolved at the monthly review and the resolution is logged.

The board and the executive committee must receive the same numbers - a board pack that reconciles to a different total than the executive pack destroys the exercise. If the two legacy portfolios use different cost definitions (capitalized versus expensed, for example), state the definition chosen on the report. Be explicit that the first board version covers register and definitions only; full maturity of dependency and risk aggregation follows in the next quarter.