Stalled Integrations
An integration with gaps and the intention to complete
The Dual Pressures of Acquisition 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.
Stalling or stalled integrations have not failed: there is an intention to complete them. However, the inertia needed to complete it will be greater than what was needed at the time of the acquisition.
A stalled integration is heading for failure
Actions must be taken to sustain progress
Fixing Stalled or Incomplete Integrations
Learn about how Intista fixes acquisition integrations in trouble
Warning Signs of a Stalling or 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 giving a Welcome speech is a way to stall an integration. Although not considered a fatal mistake it negates the momentum that a fresh start brings. Not welcoming acquired staff can easily lead to lack of trust and disharmony.`
Communication is essential to coordinate the many projects and tasks needed to integrate businesses together. Integration status updates are a barometer of achieved progress, demonstrating ease or difficulty and signaling next steps.
When integration progress communications slow down or halt, this is a clear indication of a stalling integration.
Most integrations make good initial progress on urgent and important projects, with 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, about completing the whole integration.
If there is no Integration Complete announcement, this silence signals that the integration has stalled before it reached the finish line
Lack of leadership visibility and availability are clear indications of assigning inappropriately low priority to integration success. Without office/facility visits morale decreases, staff engagement and productivity drop, likely causing the integration to stall.
Missing office/location visits will be seen as a lack of interest or low priority, which leads to stalled integration.
The org. chart is emotionally important for many employees, as they like to understand how they fit into the business' big picture. If org. charts don’t show all of the new employees, the message depicted is that the integration is stalling.
A very useful tool to integrate business culture is incorporating employees in other offices, either from the acquired to acquiring office, or vice versa. A reluctance to reconcile the cultures of the businesses will stall the forward progress of the integration.
Decreased employee engagement is a symptom of many factors, particularly poor communication, morale drop, excessive workload and a lack of progress. The drop in engagement will probably lead to a stalled integration
Hostility is not a complete failure, but must be addressed. The next steps are important, as they can lead to either a stalled integration, an incomplete integration, or a careful recovery.
Integrations require a dedicated team to set up and manage the integration, without one the initiative will struggle to be completed.
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 they think that the slow progress being made doesn’t warrant their valuable time.
Critical points in the integration require decisions to be made by the Steering Committee and IMO. If these decisions take too long, schedules, timelines and deadlines are in jeopardy and employee engagement can drop.
When the businesses are in the same country or state, the IMO should ensure the merging of business policies, e.g., travel, security, R&D protocols and policies.
If there are conflicting policies for the same type of office or facility in different locations, this is an indication that the integration is stalling.
Although it may seem practical to integrate all acquisitions at the same time in the same way, the initiative is heading for problems. Each business was acquired for a specific reason, having unique products, operations, cultures and technologies. These must be treated separately - but they can be integrated by the same IMO and workstreams.
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.
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 could completely stall.
If deadlines are missed but there is still progress, the integration schedule is in trouble, but has not stopped at this point. It is in danger of stalling.
Businesses use larger IT systems that pull data together, such CRM, ERP, HRIS systems etc. There should be discussions about if the systems should be consolidated or not, and if so how will they be migrated, deprecated, taken offline, or merged.
When there is an absence of discussion on migrating, replacing or merging systems, this is an indication of being stalled
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 the concerns of employee who are unaccustomed to lots of change
Every business has its own unique blend of the five aspect. Within the business, each team, department, or office can have their own variations of these aspects.
