Stalled Integrations
Restarting M&A
The Dual Pressures of Integration and Business As Usual
Integrating, or merging businesses together is usually a huge undertaking. Even the smallest of integrations can involve hundreds of tasks or projects to be completed. It can be very difficult to complete migrations or implementations, with the dual pressures of integrating while sustaining Business As Usual (BAU).
Often the burden can be too much, and progress gets unacceptably slowed or stalled.
A stalled integration is heading for failure
Actions must be taken to sustain progress
Fixing Stalled or Troubled Integrations
Learn about how Intista fixes acquisition integrations in trouble
Warning Signs of a Stalled Integration
What are the symptoms or indications that your acquisition integration is slowing or heading in the direction of failure?
As every business and hence every integration is unique, there is no definitive way to label an integration as stalled. However, here are some of the general indications:
Not having a Welcome speech is a poor start to an integration. It can easily lead to disharmony and lack of trust, but should not be considered a fatal flaw.
Communication is essential to coordinate the many projects and tasks needed to integrate businesses together. Status updates on the integration is a barometer of progress (or difficulties in progress) being made.
When communications to employees on integration progress slows or halts, this is a clear indication of a stalled integration.
Business operations continue to use two or more CRM, ERP, HRIS systems etc., and there is no talk of migrating to a single system. Although these migrations take a long time, there should be awareness and discussions that these systems will be migrated, deprecated, going offline, merged etc.
When there is an absence of discussion on migrating, replacing or merging systems, this is an indication of being stalled
When the businesses are in the same country or state, integrations should merge the policies of the businesses, e.g., travel, security, R&D protocols and policies.
If there are different policies for the same type of office or facility in different locations, this is an indication of slow or stalled integrations.
Most integrations make great initial progress. The easier projects are completed relatively quickly, and there is an understanding that the big-scope, long-term projects will get completed in due course. At some point there should be an announcement, if not a celebration, of completely finishing the whole integration.
If there is no Integration Complete announcement, it could be that the integration has stalled.
The Steering Committee's responsibility is to oversee progress, make significant decisions (when asked by the IMO), and hold the IMO and workstreams accountable for delivery of the integration.
If the Steering Committee is meeting infrequently, it could be that there is little progress being made, and they see the meeting as not being a good use of their valuable time.
The org chart is one of the five aspects of integration (along with technolgies
Although it may seem practical to integrate all acquisitions at the same time in the same way, the initiative is heading for failure. Each business was acquired for a specific reason, having unique products, operations, cultures and technologies. These must be treated separately - but it can be integrated by the same team(s)
A key part of business culture appreciation is the consideration of letting employees work in other offices, either from the acquired to acquiring office, or vice versa
Without a dedicated team to set up and manage the integration, the initiative will struggle to be completed
Forward progress requires a roadmap of the direction to be taken. If the teams/workstreams cannot agree on the details of how to integrate together, the integration is at an impasse
Poor employee engagement can be caused by many factors. A large number of them arise from a morale drop due to a failed or incomplete integration
If deadlines are missed but there is still progress, the integration schedule is in trouble, but has not failed at this point
The Integration Management Office (IMO) should have a plan for the tasks/projects and the desired schedule for their completion. This schedule is likely to change as issues arise, however without a planned completion schedule, the integration is heading for failure
This is not an indication of a stalled integration, but it is a clear indication of leadership's inappropriately low priority for its success. Without office/facility visits, especially when morale is low, staff engagement and productivity will drop, likely causing the integration to stall
Critical points in the integration require decisions to be made. If these decisions take too long, the schedule is in jeopardy and employee engagement will drop off
Hostility is not a complete failure, but must be addressed. It is a fork in the road where the choices lead to failure or a stalled integration and "building bridges"
Successful acquirers understand that each acquisition presents its own set of challenges and opportunities, and treat each one uniquely. The strategic goals, market conditions, and organizational cultures involved can vary significantly from one acquisition to another. To be successful, acquirers must review and plan around the specific Deal Theses of acquisition, and tailor their approach to sustain and deliver the value of the acquisition.
- Address the potential risks and obstacles more effectively
- Avoid missed opportunities that a one-size-fits-all strategy can lead to
- Better manage cultural integration
- Align business processes
- Retain key talent
This nuanced strategy fosters long-term success and growth, ensuring that each acquisition is aligned with the acquirer's overall vision and objectives.
People
Technologies and Products
Operations
Processes
Business Cultures
The Complexity of Post-Merger Integration
When you integrate businesses, you combine and transform the businesses by:
- Addressing these 5 aspects of integrations
- Accommodating different business structures and functions
- Sustaining the revenues
- Allaying employee concerns who are unaccustomed to lots of change
Every business has its own unique blend of the five aspect. Within the business, teams, departments, or offices can have their own variations of these aspects.
How Complete is Your Integration?
Take this short survey to get an approximation of how complete your acquisition integration could be.
This survey is anonymously recorded and provides an estimated completion percentage score
- This is not an accurate estimation, but may be of interest
