Balancing ‘business as usual’ with merger integrations

When a company completes—successfully—more than 100 merger integrations, there are valuable lessons to share. At CGI, we completed our first integration in 1986 and more than 100 since then, gaining unique experience and insights into what works and what doesn’t. One significant challenge we have dealt with is balancing “business as usual” with the complexities of a merger integration.

Senior leaders across industries face the same challenge. Merger integrations are a lot of work. We are often asked, “How do you manage the demands required to ensure a successful integration while also continuing to execute core business activities?”

This blog provides insights on how to achieve this balance and gain the full rewards of M&A transactions.

Competing priorities

Even before the start of a merger, senior leaders running large operations are hard pressed for time. Business as usual requires around-the-clock attention and effort. How can they take on the added responsibility of a merger integration without becoming distracted from the day-to-day? How can they and their teams continue to deliver quality products and services and meet the expectations of their stakeholders while simultaneously managing the complexities of a merger integration?

A merger integration can take on a life of its own. It brings significant changes to the structure, culture, and operations of the companies involved. Managed improperly, it can limit or even destroy the merger’s potential value. Success, however, depends on a huge investment of time and energy. How can senior leaders make this investment while also prioritizing daily business demands?

Key elements of a balanced merger integration approach

In our experience, there are three core elements that drive the success of any merger integration project while simultaneously helping leaders and employees balance the “day-to-day.”

Element 1: A focus on uninterrupted customer value

Include in your definition of integration success the uninterrupted delivery of customer value. Customer-focused integration projects reinforce the parallel goal of keeping business as usual running smoothly. By continuing to prioritize customer-centric activities, making them highly visible, and measuring their results, an organization can more easily anticipate and address potential disruptions from a merger integration.

Element 2: Investment in a dedicated integration project team

Successful integration leaders assign dedicated, empowered personnel to achieve the objectives of the integration project. These dedicated project team members across core disciplines such as HR, legal, finance, marketing, and other corporate domains will, in turn, support the operational leaders who run the business. Forming a dedicated integration project team ensures the necessary capacity to simultaneously focus on business-as-usual and integration priorities.

Element 3: Clear communication among all stakeholders

Effective communication throughout the integration—among employees, clients, suppliers, and shareholders—keeps all stakeholders informed and aligned while minimizing the potential of distraction resulting from integration complexities. Integration objectives and plans should be clearly defined and communicated to create mutual understanding, avoid confusion, and preserve business as usual.

Tactical steps for balancing priorities

With these core elements in place, integration leaders can proceed with the tactical steps required to ensure proper balancing between integration and business-as-usual activities. Based on our integration experience, we recommend the following steps:

1. Develop a detailed integration plan before the integration begins and carefully choose integration team members

Begin to design the integration project plan as early as the due diligence phase. In addition, to ensure business continuity throughout the project, choose leaders and employees from both companies with a deep understanding of their respective areas, a good grasp of their company's history, and the necessary knowledge and skills to drive the integration while maintaining business as usual.

2. Deliver frequent employee communications, tailored for a variety of audiences

Successful leaders communicate on the merger frequently and transparently, explaining the rationale and benefits. Use various communication methods and channels to explain the upcoming changes to employees and address their concerns. This critical activity helps to engage and motivate employees throughout the integration as they adjust to integration changes and continue their day-to-day work.

3. Explain and advance the desired post-integration culture and values

Unaddressed cultural gaps can have strong repercussions. While it is important to acknowledge the corporate culture of each company, leaders should be clear early in the process about the end-state culture to avoid prolonged uncertainty for employees. Effective alignment around the new corporate culture will make it much easier for employees to adopt new operational processes and tools.

Achieving merger objectives without compromising core operations

Successfully completing a merger requires maintaining a delicate balance between day-to-day business activities and complex integration efforts. Based on our experience, the core elements and tactical steps outlined above help to ensure that an organization meets the strategic objectives of a merger without compromising its ongoing operations. By adeptly harmonizing merger integrations with business as usual, companies can achieve the full potential of transformative mergers while preserving the integrity of their core functions.

CGI has developed a viewpoint paper that provides more in-depth details on the core elements and tactical steps shared in this blog. To request a copy, feel free to reach out to me. I also invite you to learn more about our mergers and acquisitions advisory services to discover better ways to manage your next merger integration.