BLOG NO. 2: RISKS OF FAILURE TO PROPERLY INTEGRATE
#mandaadvice #mandaseries #mergersandacquisitions
This is part of a 4 Blog series about Post-Acquisition Integration Tasks, and my experience working in public sector, finance and technology as a Project Manager, Programme Manager running a PMO and overall assisting in merging organizations.
Mergers and acquisitions can be risky undertakings, and one of the biggest risks is the failure to properly integrate the two organizations. In this blog, we will discuss the risks of failure to properly integrate, including technical debt, too many separate and disparate systems, legal, contractual, or jurisdictional ambiguity, which may arise from multiple legal or regulatory environments.
1. Technical Debt: One of the risks of failure to properly integrate is technical debt. Technical debt refers to the accumulation of technical issues and inefficiencies that arise from the use of outdated or inefficient technology. If the two organizations are using different systems or technologies, this can result in technical debt that can be difficult to address and can hinder the success of the new organization.
2. Separate and Disparate Systems: Another risk of failure to properly integrate is having too many separate and disparate systems This can result in inefficiencies and redundancies that can impact the performance of the new organization. It can also make it difficult to access and share data between different parts of the organization, which can hinder decision-making and slow down the integration process.
3. Legal, Contractual, or Jurisdictional Ambiguity: Mergers and acquisitions can involve multiple legal or regulatory environments, which can create ambiguity and uncertainty. This can include issues related to contracts, intellectual property, data privacy, and other legal or regulatory requirements. If these issues are not addressed properly, they can result in legal or financial liabilities that can be costly and time-consuming to resolve.
4. Cultural Integration: Another risk of failure to properly integrate is the lack of cultural integration. When two organizations with different cultures come together, it can create challenges related to communication, collaboration, and teamwork. If these issues are not addressed properly, it can lead to employee disengagement, turnover, and reduced productivity.
5. Customer Impact: The failure to properly integrate can also have a negative impact on customers. Customers may experience disruptions in service or changes to the products or services they are used to, which can lead to dissatisfaction and a loss of business. It is important to manage customer expectations and communicate effectively with them throughout the integration process.
In conclusion, the risks of failure to properly integrate are significant and can impact the success of the new organization. It is important to address issues related to technical debt, separate and disparate systems, legal, contractual, or jurisdictional ambiguity, cultural integration, and customer impact to ensure that the integration process is successful.
Adapt Consulting Company
We support businesses with people, process and technology change. Either small (eg SME start-ups) or large (eg privatisation of public-sector organisations).
We do this as Consultant/Project Manager sometimes setting-up an in-house Project Management Office (PMO) and Change Team. We also Mentor for programmes like the UK IoD BeTheBusiness.
#businessalignment #businessstrategy #businesstransformation #communication #contractmanagement #corporatestrategy #culturalintegration #customerimpact #disparatesystems #financeindustry #integrationbestpractices #integrationinsights #integrationjourney #integrationrisks #integrationtasks #integrationtips #itintegration #legalissues #mandaadvice #mandaseries #mergersandacquisitions #organizationalalignment #organizationalculture #performanceimprovement #postacquisitionintegration #postacquisitionsuccess #processimprovement #programmemanagementoffice #riskmanagement #stakeholderengagement #strategicgoals #targetoperatingmodel #technicaldebt