Steps to Ease M&A Pain for IT

Posted by: Rod Kurtz on August 30, 2007

Although mergers and acquisitions are a means for growth and a sign of success for a company, growing pains are often experienced within the organization. IT professionals, for example, are expected to ensure that the operations of two companies come together and run seamlessly as a single new company. It’s a hefty task, and often one not top-of-mind for executives as they sign the deal. Here are three simple steps that businesses can take to help IT departments prepare for a smooth transition:

• Keep a circle of trust. Details around potential mergers and acquisitions are obviously very sensitive and strictly on a need-to-know basis. With IT acting as a backbone to the communications and processes within a business, keeping the IT department in the loop and involved in business strategy helps to create a stronger overall support system. Creating a strategic task force that would plan ahead and start the integration process of IT systems could enable IT to drive the integration rather than having to respond to it.

• Keep a running blueprint handy. Business merger aside, if you can assess the technology and processes currently running your organization, then you can strategically plan for change. Working with the CIO and IT department to ensure that a robust enterprise architecture is in place can help to determine risks, identify redundancies, and manage costs—and ultimately drive strategy in a merger.

• Know what you’re getting. At the same time, if you are expecting bananas, plan for oranges. Plan for different outcomes and configurations, which should result in a more organized and efficient merger. Again, working with executives and the IT department from both organizations to determine how new technology assets should be handled will save time and money.

Hank Weghorst
Chief Executive Officer
Troux Technologies
Austin, Tex.

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