Without a roadmap, your M&A will not succeed. It’s not just about buying a company, you should invest in its integration.
Some figures that may make your head spin (source: CLC):
- In 58 % of cases, integration (merger & acquisition) failed due to:
- The wrong process
- Poor preparation
- Lack of communication
- No change management
- 56 % of targeted synergies are never reached.
- 34 % of companies take more than 2 years to achieve the targets.
- Only 6 % assessed the process as very successful.
- Besides the financial figures, also evaluate the other aspects of the business. HR due diligence, for example, is certain to reveal essential elements that may have financial and other consequences.
- Design the new organisation before the closing.
- Evaluate managers’ competencies, potential and values in order to put the right person in the right places (later).
- Develop a communication strategy and project approach.
- Evaluate the culture, for example to establish the strengths and possible obstacles for the integration.
- Appoint an integration manager.
Establishing the foundations
- Start ‘twenty’ working groups (integration task forces or ITFs) – one for each strategic business process – composed of a core team of managers from both companies.
- Work with managers from both companies to establish a new (joint) business plan.
- ‘Visibly’ involve (senior) managers from both companies.
- Appoint new managers at the acquiring company. Ensure the best manager wins. Make your decision based on past results, ITFs and of course previous assessments.
- Integrate terms and conditions. The more you let time pass, the more employees continue to think in terms of people being an ‘ex-A’ or an ‘ex-B’.
- Accelerate integration by organising cultural workshops and intensive process mapping.
- Perform process audits. Decide on the best process.
- Exchange managers between both companies.
- Pay attention to feedback and learn from it.
- Form one company with one MT and one manager in every position, without any compromises.
- Develop common tools, a common language and common processes. Pick the best from both worlds.
- Also decide what should remain unchanged and what is outside the scope of the integration and ITFs (the common ERP, for example).
- Use learning and development tools to further promote learning from each other.
- Audit the integration process.
How should you manage such a change project?