M&A Integration Series - Successfully Integrate a Central Function
Are you a manager in a central function such as IT, Finance, Purchasing, and facing an acquisition?
Wondering how it will impact your role?
Let's look into the primary motivations behind acquisitions:
Expanding the workforce isn't typically a primary objective. Hence your role is likely to undergo transformation.
How will this transformation unfold? It largely depends on how you and your team shape the change.
I'll outline 3 essential principals for successfully navigating M&A integration for central functions, ensuring that you and your team emerge from the process stronger than before.
Everything will change
After mergers and acquisitions, the common refrain is often "Nothing will change." The reality is quite the opposite—everything will change. It's essential to accept these changes rather to resist them. The saying "resistance is futile" couldn't be more accurate; resisting change will only hinder you and your team in the long run.
How can you turn the transition into a success story for you, your team, and the acquiring company?
Here are 3 essential principles for managers to follow:
Principle 1: Embrace It
Resisting change is a natural human reaction. But it's essential to recognize and navigate the four phases that accompany any change: Shock, Resistance, Exploration, and Commitment. Allow your team the time to absorb what's happening and understand that change is inevitable. Remember, change touches everything.
Now, it's your moment to lead by example. Clearly communicate to your team that change is on the horizon and that it presents numerous opportunities for growth. Resisting change only prolongs the process and increases discomfort for your team. Eventually, embracing the new standards becomes inevitable.
Share the key message: change presents significant opportunities for growth. Lead by example, demonstrating your commitment and proactive approach to driving change.
Curious about how to implement this? Let’s look at principle 2: Get It.
Principle 2: Get It
As a leader of a central function, it's likely that there's a team within the acquiring company performing similar tasks, but with different tools and processes. Typically, these processes and tools become the new standard for your organization to adopt moving forward.
So seize every opportunity presented by the acquiring company: implement their processes, adapt configurations, and transition to global tools. Not only is this expected of you, but it also offers substantial benefits. It familiarizes your team with the new standards and builds connections with global teams—your counterparts within the acquiring organization. Moreover it showcases you as an enthusiastic supporter who is open to learning and collaboration.
Based on my extensive experience with numerous M&A transitions, I can confidently say that few acquired teams adhere to this approach. Unfortunately the common tendency among most teams is to initially resist change and cling to their existing setups.
Fully committing to the new organization and getting everything you can, offers substantial advantages for the professional growth of your team. But the manner in which you do so is crucial.
The third key principle goes into the specifics of this process: Lead It.
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Principle 3: Lead It
With the “Get It” principle, your team fully immerses in the new organization. Take the initiative to familiarize yourself with the new team and standards.
Following this initial phase, demonstrate your proactive nature by promptly adapting to new tools and processes. Present a proposed timeline for implementation, aiming for the earliest feasible timeframe to show your seriousness and genuine interest. Consider drafting an early project roadmap, outlining key features for smoother integration.
The next step involves recommending team members from your team to participate in the project. Additionally, I propose offering to lead the initiative by someone within your team. Acknowledging everyone's busy schedules, taking a leadership role will likely be well received by the acquiring organization.
At first, this might seem a bit overwhelming. But sooner or later, your team will have to deal with these new processes. It also presents a crucial opportunity, perhaps the most significant one:
By being among the first to adapt the new global standards, you'll quickly understand the new processes. Trust me, they're not flawless and, like your own processes, they have room for improvement. As one of the pioneers within the organization, you'll have the chance to introduce your ideas, make proposals, and shape some of the processes and tools of the global organization.
Furthermore, you'll open doors to assuming global responsibilities. This could mean that someone from your team taking ownership of a process or application for the entire organization. You might have the chance to establish a knowledge hub or competence center within your team, serving the entire global organization.
You create an exciting future with countless opportunities for you and your team.
Summary
Successfully integrating your central function into a global organization boils down to 3 essential principles:
EMBRACE IT
GET IT
LEAD IT
By embodying these principles — Embrace It, Get It, Lead It — you not only effectively integrate your team but also enable the broader organization to gain significant benefits:
Mergers and acquisitions are occasions for celebration. Remember, the best way to shape the future is by actively creating it!
Thank you for taking the time to read this. Wishing you much success in implementing these strategies.
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