By Johna Till Johnson, President, Nemertes Research

The Issue

Mergers and acquisitions create a particular kind of stress on IT systems, organizations and processes. Companies typically have limited time and information within which to craft an integration strategy. IT staffs, in particular, are legally constrained regarding the knowledge they can acquire about the new acquisition—yet are under pressure to have the new entity fully integrated from Day One. The challenge is often exacerbated by the expectation that IT organizations will “recognize synergies” from the acquisition---i.e., the same individuals crafting and executing the acquisition are often in danger of losing their jobs. It’s no wonder, then, that mergers are often highly inefficient and painful, at least from an IT perspective. However, with foresight and planning, it is possible to put in place an integration strategy that appropriately sets expectations (both in the amount of time required for full integration and the degree, if any, to which layoffs are possible); delivers improved operational performance; and shows a measurable degree of integration from Day One.

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