Issued March 6, 2023 — one week after the Integration Charter authorizes the program. This document establishes the operating structure for the Integration Management Office (IMO) and the decision protocol that makes it work, which is not the same as any other integration program because the Program Manager does not employ anyone. This structure is load-bearing rather than administrative.
Table of Contents
- The Consultant PM and the Borrowed Team
- Reporting Lines and Authority
- Decision Rights and Escalation
1. The Consultant PM and the Borrowed Team
Christian Tyrrell, as Program Manager, is employed by Arrington Advisory Group, not by ACME or Cumberland Valley. He leads the Integration Management Office, which consists of workstream leads and staff from both companies, plus vendors contracted to specific work streams. He directs no one and employs no one. Every workstream lead reports to an ACME executive or a Cumberland Valley executive, not to him.
This is the correct structure for an acquisition program, and it creates a governance problem that must be solved or the program fails: a consultant may propose, advise, and recommend. He cannot compel. If a workstream lead decides not to comply with a program decision, the PM cannot fire them. He cannot reduce their budget. He cannot move them to a different role. He has only one tool: escalation.
This governance structure therefore has one critical assumption: disputes and conflicts are escalated immediately, not held at the working level for later resolution. If a workstream lead is unsatisfied with a PM decision and chooses not to escalate, they are choosing to comply. If they choose to escalate, the Sponsor decides. No in-between exists.
2. Reporting Lines and Authority
The organizational chart for the IMO is simple: the PM reports to the Executive Sponsor (D. Ashmore, EVP & CFO). Workstream leads report to their respective line executives (the heads of Finance, Technology, Operations, Clinical, and so forth) across both organizations. There is no dotted-line reporting from workstream leads to the PM, and there is no "matrix" that allows hedging between line and program authority.
| Role | Reports to | Authority |
|---|---|---|
| Program Manager (C. Tyrrell) | Executive Sponsor (D. Ashmore) | Schedule, readiness status, escalation decisions. Delegates change control below $250K. |
| Workstream leads (11) | Line executives (ACME & CVHP) | Their functional area in the integration. Report progress to PM; decisions on content and staffing go to their line executive. |
| IMO staff | Program Manager or line executives | Day-to-day planning, reporting, coordination. Answer to their assigned executive. |
| Vendors (8 firms) | Sponsoring workstream lead & Procurement | Deliverables per SOW. Escalations to PM for scope or resource changes. |
3. Decision Rights and Escalation
Decisions fall into two categories: those that can be made within a workstream (staffing, vendor management, deliverable sequence) and those that affect the program (scope changes, cost impact, schedule moves). The line in between is not always clear, but the escalation rule is: if you are unsure whether it needs escalation, it needs escalation.
Decisions Made at the Workstream
The workstream lead owns their deliverables and the means to get them. They hire staff (within approved budget), direct work, sequence activities, and allocate their budget across their work packages. They are accountable to their line executive and to the PM for delivery against the plan.
Decisions That Escalate
A decision escalates if it moves one of the following:
- Schedule milestone dates (affects other workstreams and gates)
- Scope of deliverables (affects downstream work or member/provider/regulator communications)
- Budget allocation (affects contingency or total program cost)
- Staffing or vendor scope (affects other workstreams or timeline)
- Assumptions on which the plan depends (member data quality, system availability, regulatory approval)
4. Change Control Tiers
Three decision tiers govern changes in scope, cost, or schedule. The threshold is cost impact, and the approver depends on the amount.
| Tier | Cost Impact | Approver | Process |
|---|---|---|---|
| Tier 1 | Under $250,000 | Program Manager (C. Tyrrell) | Logged in the change register; reported to Steering Committee monthly. Can draw from baseline contingency. |
| Tier 2 | $250,000 to $1,000,000 | Executive Sponsor (D. Ashmore) | Contingency draw approved by Sponsor; change logged and reported to Steering Committee within one week. Sponsor notifies Steering immediately if approaching reserve. |
| Tier 3 | Over $1,000,000 | Steering Committee | Formal change request; Steering approval required. Impacts reserve and may trigger constraint negotiation. Approved or denied within one business day of submission. |
5. The Steering Committee and Gates
The Steering Committee meets monthly and convenes immediately for gate decisions. It consists of six executives: the Executive Sponsor, the Chief Operating Officer and Chief Information Officer from ACME, and three senior leaders from Cumberland Valley (the CEO, CFO, and one clinical or operations executive). The committee is chaired by D. Ashmore.
Monthly Steering Meetings
Monthly meetings (first Wednesday of each month) cover constraint status (TSA, Day 1, synergy, cost), major milestones reached or missed, risk status, and decisions required. The meeting receives one consolidated program status report, prepared by the PM and drawing from all workstream status inputs due Wednesday morning. No workstream presents its own status independently; all data flows through the PM's summary to ensure a single version of the numbers.
Gate Decisions
Pre-close, Close, Day 1, Day 100, and TSA Exit are formal gates that require explicit Steering Committee approval to proceed. The approval is a decision, not a formality. A gate decision can be defer (proceed on contingency with conditions), conditional approval, or deny (do not proceed until condition is met).
Escalation Decisions
Any dispute escalated by a workstream lead to the Sponsor that the Sponsor cannot resolve (or chooses to escalate) goes to the Steering Committee for decision. These are not scheduled; they happen same-day or next-day. The PM prepares a written summary of the dispute, the facts, the options, and the implications of each. Steering decides. The decision is final within the program; either the decision is accepted or the concerned party escalates outside the program structure (to Corporate Development, the Board, the CFO independently).
Related artifacts: Charter (1) · Integration Management Plan (9) · Communications Plan (17) · Resource Plan (14) · WBS & Console (10) · How to Read This Suite