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The Sign-Off Table

Lesson 4 of 6

Running the program: IMO, clean teams, Day 1, Day 100 and the TSA

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An SAP integration does not run as a normal SAP project. It sits inside a deal with a signing date, a closing date, antitrust rules, a seller who may still provide services, and executives who measure success in synergies. This lesson covers the program mechanics an SAP lead must work within: the integration management office, what IT may and may not do before close, the Day 1 and Day 100 plans, and transition service agreements and their exit.

The integration management office

Big integrations use three tiers: an executive steering committee, an integration management office (IMO), and functional workstreams. EY describes an IMO that owns the integration roadmap, resolves cross-functional issues and challenges workstream charters against Day 1 requirements, meeting weekly. McKinsey argues that the IMO should report directly to a CEO-led steering committee and be staffed with top performers, because a conventional PMO is poorly suited to capturing breakthrough value. The SAP workstream is one of several, alongside HR, legal, tax, treasury and commercial integration.

Steering committeeExecutives; approves target state, budget and synergy targets; meets monthly or at milestones
Integration management officeOwns the roadmap and interdependencies, resolves cross-workstream issues, runs Day 1 readiness; meets weekly
SAP workstreamGrace: route, Wave 2 plan, mocks, testing and cutover; reports status and risks to the IMO
Other workstreamsHR and payroll, legal entity and tax, treasury, commercial, communications
The three-tier governance model with the SAP workstream as one of several; decisions escalate upward, not sideways.
The Sign-Off Table · thesignofftable.com/academy/sap-xpr-307
ActivitySteering committeeIMOSAP workstream (Grace)Finance (Dan)Security (Nadia)
Target state and routeARCCI
Day 1 readiness checklistIARRR
Clean-team data requestsIACCI
Wave 2 go/no-goICARR
TSA service schedule and exit planARRCC

An extract from Contoso's integration RACI (R responsible, A accountable, C consulted, I informed); illustrative course data.

Before close: clean teams and gun-jumping

Between signing and closing, the two companies are still independent, and if they compete, antitrust law limits what they may share and do. The US Federal Trade Commission's guidance says the risks last until the merger closes, that sensitive information includes current and future prices, strategic plans and costs, and that information shared should be narrowly tailored to diligence or integration planning. Clean teams should exclude people responsible for competitive pricing or strategy. In January 2025 the FTC announced a record $5.6 million civil penalty against XCL Resources, Verdun Oil and EP Energy for gun-jumping, which included control over the target's ordinary operations before close.

Sensitive data flows only through the clean team and counsel; structural information may go directly to the integration team.
The Sign-Off Table · thesignofftable.com/academy/sap-xpr-307
CategoryExamples for an SAP teamBefore close
StructuralSystem inventory and releases, interface catalog, org-structure definitions, data models and field lists without valuesGenerally fine through a counsel-approved channel
Competitively sensitiveCustomer lists and overlap, pricing conditions, supplier prices, margins, open order book, compensationClean team only, aggregated or masked
Operational controlApproving the target's purchases, changing its processes, shared production access, live cutoverNever before close

A rule of thumb for what IT and test teams may handle before close; get counsel to approve your own version.

Test data follows the same rule. Before close, no copy of the target's production data belongs in the buyer's test systems unless it is anonymized and cleared by counsel. Contoso's architects received Alternadores' system inventory, its legacy data model and its interface list before close; the customer overlap with Contoso's fleet business was analyzed only by external advisers in the clean team, and Hannah's matching on real customer records started after close.

Day 1, Day 100 and the end state

Day 1 is set by the deal, so plan backward from it. EY advises evaluating Day 1 readiness 30 to 45 days before close and focusing on Day 1, Month 1 and Quarter 1 reporting. Day 1 for an SAP program is about must-haves, not integration: the legal entity can trade, pay, get paid, pay its people, close its books and report to the new owner, and access is segregated. Contoso's deal closed on September 1, 2026, three weeks after its own conversion went live.

AreaDay 1 (September 1, 2026)Day 100 (early December 2026)End state (Wave 2, February 2027)
OperationsLegacy ERP unchanged; CFDI invoicing from legacyLegacy ERP; W2 Mock 1 and 2 doneCompany code 1910 in Contoso's system
ConsolidationTrial balance by flexible upload to Group ReportingSame, with mapping to Contoso's chart verified1910 consolidated directly
AccessContoso finance gets read access to Alternadores reports; no shared production accessDerived 1910 roles designed and tested1910 users on Contoso roles; legacy users read-only
Customers and suppliersNotified of the new owner; bank details unchangedOverlap decisions made in MDGBusiness partners in SAP S/4HANA

Contoso's Day 1, Day 100 and end-state plan for Alternadores del Norte.

Transition service agreements

When a business is bought out of a larger group, the seller usually keeps running some services for a fee under a transition service agreement (TSA). A reverse TSA runs the other way: the buyer provides services to the seller, for example when staff who supported the seller's other units transfer with the business. PwC reports that TSA exits typically take 12 to 24 months, are achievable in 6 to 12, and involve more than 1,500 design decisions; EY expects a draft TSA exit plan within 90 days of closing. A TSA schedule should say how each service is delivered, disputed and exited, with service levels, fees and an end date.

Alternadores was bought from a family holding group whose shared-services center hosts the legacy ERP, the IT help desk and payroll. The TSA runs until April 30, 2027. That end date was chosen so the legacy ERP stays available read-only for about twelve weeks after the Wave 2 go-live, through the first two month-end closes in SAP S/4HANA, and so that the TSA exit and the go-live weekend never fall in the same window.

The TSA outlasts the Wave 2 go-live so that the exit and the cutover never share a weekend.
The Sign-Off Table · thesignofftable.com/academy/sap-xpr-307

What would you do?

Three weeks before closing, a Contoso finance analyst asks Wei, the TCoE test data and environment lead, for a copy of Alternadores' customer master with prices so the Wave 2 team can start mock loads early. What should Wei do?

Key points
  • The SAP workstream reports into an IMO that reports to the steering committee.
  • Before close, share structure freely through counsel, sensitive data only via a clean team, and never take operational control.
  • Day 1 is about must-haves; Day 100 and the end state carry the integration.
  • A TSA needs a schedule, an exit plan within about 90 days, and exits that never share a window with a cutover.

Check your understanding · not graded

Lesson check

  1. 1. Before close, which item may the SAP team usually receive through a counsel-approved channel?

  2. 2. What should a Day 1 SAP plan focus on?

  3. 3. Why does Contoso's TSA end in April 2027 rather than on the go-live weekend?

  4. 4. What is a reverse TSA?