Bringing in a purchased company can be a daunting task, especially when it comes to rationalising the IT systems of both companies. But with proper planning and a solid change management strategy, you can ensure that everyone gets on the same technology stack and on the same page quickly. In this blog post, we will cover the key steps for successful IT rationalisation in a merger or acquisition, as well as the pitfalls and problems you may encounter along the way. So sit back, grab a cup of coffee (or your favorite beverage), and let’s dive in!
Step 1: Assess the IT systems of both companies
The first step in rationalising IT systems is to get a clear understanding of what you’re dealing with. This means assessing the IT systems of both companies and identifying any redundancies, gaps, or areas of overlap. This will give you a good starting point for determining what needs to be done to bring the two companies together.
It’s important to note that this assessment should be done by a team of IT experts who are familiar with both companies’ systems. They should be able to identify any technical challenges that may arise during the merger or acquisition process.
Step 2: Prioritise the IT systems
Once you have a good understanding of the IT systems of both companies, you’ll need to prioritise which systems are most important to the overall success of the merger or acquisition. This will help you focus on the systems that need to be rationalised first, and avoid wasting time and resources on systems that aren’t as critical.
It’s also important to consider the impact that the IT systems have on the day-to-day operations of the company. For example, if the IT systems of one company are critical to the production process, then those systems will need to be rationalised as soon as possible.
Step 3: Develop a change management plan
Once you’ve identified the IT systems that need to be rationalised and prioritised them, it’s time to develop a change management plan. This plan should include a clear timeline for when the changes will be made, as well as a detailed list of the steps that need to be taken to make the changes.
It’s important to note that change management is not just about the technical aspects of the merger or acquisition. It’s also about communicating the changes to the employees and getting them on board with the new systems. This is where good communication and training will come in handy.
Step 4: Communicate and train employees
As we mentioned earlier, communicating the changes to the employees and getting them on board with the new systems is a critical part of the change management process. This means that you’ll need to provide clear and concise information about the changes, as well as training on how to use the new systems.
It’s also important to note that employees may be resistant to change, so it’s important to be prepared for this. A good way to mitigate this is to involve employees in the change management process as much as possible. This will help them feel more invested in the process and more likely to embrace the changes.
Step 5: Test and implement
Once the change management plan is in place and the employees have been trained on the new systems, it’s time to test and implement the changes. This will help ensure that the new systems are working as intended, and that any issues are identified and addressed before they become a problem.
It’s also important to note that testing and implementation should be done in a controlled environment, such as a test lab. This will help minimise the risk of any problems during the implementation process.
Pitfalls and problems to avoid
While the steps outlined above will help ensure a successful IT rationalisation process, there are still a few pitfalls and problems that you’ll need to be aware of. Here are a few to watch out for:
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Lack of communication and transparency: One of the biggest problems that can arise during a merger or acquisition is a lack of communication and transparency. This can lead to confusion, mistrust, and resistance from employees. To avoid this, it’s important to keep everyone informed about the changes, and to involve employees in the process as much as possible.
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Resistance to change: As we mentioned earlier, employees may be resistant to change, especially if they are used to working with a certain system or process. To mitigate this, it’s important to provide clear and concise information about the changes, and to provide training on how to use the new systems.
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Technical challenges: Merging or acquiring a company can bring with it a lot of technical challenges, such as compatibility issues or data migration problems. To avoid these problems, it’s important to have a team of IT experts who are familiar with both companies’ systems, and to prioritise which systems need to be rationalised first.
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Lack of planning: One of the biggest problems that can arise during a merger or acquisition is a lack of planning. This can lead to delays, confusion, and wasted resources. To avoid this, it’s important to have a clear plan in place, and to prioritise which systems need to be rationalised first.
Conclusion
Bringing in a purchased company can be a daunting task, especially when it comes to rationalising the IT systems of both companies. But with proper planning and a solid change management strategy, you can ensure that everyone gets on the same technology stack and on the same page quickly. By following the steps outlined in this blog post, you’ll be well on your way to a successful IT rationalisation process. Just remember to keep communication open, involve employees in the process, and avoid the pitfalls we’ve outlined. And most importantly, don’t forget to have a little fun along the way.
References:
- Kotter, John P. “Leading Change.” Harvard Business Review, 1996.
- Prosci. “Change Management Research: 2018 Edition.” Prosci, 2018.
- McKinsey & Company. “Mergers, acquisitions, and divestitures: Managing the IT challenge.” McKinsey & Company, 2016.
