Gartner Research

Mergers and Acquisitions: Integration Without Tears

Published: 01 June 2010

ID: G00201530

Analyst(s): Dave Aron , Mary Mesaglio , Gabriela Albornoz-Allsop

Summary

Mergers and acquisitions (M&As) are a major challenge for CIOs and IT, where conventional leadership and management techniques can often fall short. With M&As on the rise, and IT’s integration role more critical than ever, it pays for CIOs to build their M&A integration capabilities using proven techniques.

Table Of Contents
  • Overview

Foreword

Executive summary

  • Successful integration relies on strong governance and metrics

Merger and acquisition (M&A) integration is a critical capability for CIOs

  • M&A integration is not business as usual
  • Strategic M&A activity is expected to increase in 2010-2011
  • All mergers are not equal
  • Public sector M&As can be more challenging
  • CASE STUDY: Department of Education, Employment and Workplace Relations—Overcoming obstacles to a public sector merger

M&A integration is best done across workstreams and in five phases

  • Plan an integration consisting of five phases
  • Estimate time and effort
  • Identify workstreams
  • CASE STUDY: Procter & Gamble—Merging two large international companies
  • Identify IT and non-IT workstreams
  • Sidestep common M&A “gotchas”
  • CASE STUDY: Suncor Energy—Dealing with M&A surprises

Successful M&A integration relies on having the capabilities in place to maintain control

  • Define integration principles
  • CASE STUDY: Microsoft—Evolving an M&A integration program: Keys to success
  • Define integration principles (continued)
  • Use measurements to retain focus
  • Establish an integration program office
  • CASE STUDY: Smiths News—M&A integration without disrupting customer service
  • Get everyone to work together
  • CASE STUDY: Stantec—Succeeding as a serial acquirer
  • Continually improve IT M&A integration capabilities, and apply the lessons elsewhere
  • Conclusion

Further Reading

  • Gartner Executive Programs reports
  • Core research
  • Books

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