Knowledge gained through experience.

Mergers Gone Bad

Merging IT Infrastructures is a huge engineering challenge... meeting this challenge successfully is crucial to the entire company's merger being successful.

Mergers and Acquisitions - IT Departments

When a merger goes well... the new company enjoys a larger footprint, a larger customer base and greater profits. This leaves the new company in a good position to succeed.

When a merger goes bad... the new company faces a business that costs too much to sustain, an inefficient and stressful work environment with low employee morale, high customer turnover, huge financial losses, and potentially a failed company.

Mergers of all kinds can leave IT Infrastructures in bad shape. When this happens, it will (without exception) negatively effect the productivity of the entire Business. On paper, the leadership staff may provide everything the new company needs for a proper IT Infrastructure, yet for reasons that can seem unknown or elusive, it can still produce less than desired results.

Common side effects:[partial list]

  • Systems and Enterprise Applications never get properly combined or consolidated.
  • Networks get "duct taped" together but never properly integrated, leading to slowness and productivity loss.
  • Processes & Procedures that are put in place don't reflect the actual work that needs to be done.
  • Turf wars between managers and legacy teams ensue.
  • The work environment becomes very political.
  • Frustration sets in, stress levels increase, and employee morale decreases.
  • Productivity slows to a crawl, which negatively affects the entire Business.
  • Other Business Units get more and more frustrated because they cannot get the level of support they require from their IT Department.
  • Employees grow to distrust their Leadership staff.
  • Many employees [with some of the strongest skill sets] get fed up and leave.
  • After repeated mergers and acquisitions, these negative side affects can grow exponentially worse.

These negative side affects can be avoided from the start if you know what to look for. However, in a post merger environment, if these side affects have already taken hold they will not work themselves out over time. The good news is... with some outside help they can be reversed and the entire IT Infrastructure can be fixed.

Going into a merger armed with the knowledge of what to look for and the potential side effects can improve the chances of successfully merging your IT Infrastructure, and greatly reduce the amount of money that is wasted on lack of productivity. For post merger environments, identifying and fixing the negative side effects improves the response time for all IT requests and removes staff frustration. This will increase the productivity of the entire business, improve employee morale, and greatly reduce the Cost of Doing Business.