How to Manage an IT Team During a Merger Acquisition
There are challenges that arise during a merger. Whether the two companies are of equal size or if a large company is acquiring their smaller competitor, they will face difficulties while trying to unite their business processes, cultures, and technologies. IT professionals can use a merger and acquisition as an opportunity to expand the company’s services and products. However, it can be difficult for an IT professional to share their resources with strangers. During mergers, IT managers must often deal with issues ranging from employee culture clashes to integrating poorly developed systems.Fortunately, with proactive management and effective planning, these issues can be easily resolved. Here are six suggestions IT leaders can use to manage their teams, new and old, during a merger or acquisition.
- Keep Quiet
During a merger or acquisition, it’s common for rumours to spread amongst employees. However, the IT leader should not disclose any information they have about the deal. This information can unnecessarily alarm staff members. Staff members often get general information about the status of a merger or acquisition, but they only get involved in the planning phase when the merger is actually complete.
- Take Inventory
After the merger or acquisition is complete, the IT leader must take inventory of all systems and technologies that exist in both companies. Merger Technology suggests pulling IT professionals from both groups together to compare the technologies in use. For example, after the July merger of Sanford Health and Bismarck’s Medcenter One, the IT directors met on a weekly basis to compare the systems and technologies used in both corporations, in order to create a plan as to how these systems can be integrated.
- Consider All Your Options
After a merger or acquisition, IT professionals should be looking for ways to integrate systems. Sometimes, this means considering work around solutions. For example, Sanford Health used Microsoft Exchange 2010 for e-mail. The Bismarck, ND location used Exchange 2003. Instead of eliminating one of the e-mail systems altogether, devise a workaround solution. Because there were a flurry of e-mails going back and forth between these two systems, some choose to encrypt the company e-mails, as if they used one internal system.
- Be Patient
There will be many sources of conflict when reshaping companies. Combining company cultures is one of the most challenging parts of mergers and acquisitions. IT leaders need to recognize that there are two different cultures a play. Then, they need to determine the best way to bring those cultures together. This process takes time and rushing it will only lead to employee dissatisfaction.
- Stress the Positive
Most IT professionals recognize that in the wake of a merger or acquisition, attrition rates are high. During this time, many changes are taking place within the organizations. Those who considered leaving the organization may decide to take this opportunity to find work elsewhere. The IT leader needs to emphasize the positive aspects of the merger and acquisition for IT professionals, instead of expressing negativity about the systems and services being integrated. Sanford’s merger with Meritcare increased the existing 100-person IT team by adding 100 new IT professionals. A merger or acquisition may present opportunities for new positions, for current employees.
- Be Willing to Let Go
Even though the one of the IT leader’s responsibilities is to convince employees to embrace change and new technology, it is often the IT leader who is most resistant. It’s easy to get tied to your technology. During a merger or acquisition it’s important to recognize that in order to achieve the goals of the new company, some things need to be given up. The way things were done in the past, may not work for the new company, in the future. And, although a system may work in one organization, someone else may have a system that may work better for the new organization.