From my experience as a Project Manager, mergers to save money have become a common strategy for Government organisations to achieve cost savings. A recognition to use one body, to manage these savings, especially for cross business functions, has been heralded as the future of such endeavours. However, the process of merging functions from two organisations is complex and requires careful planning, execution, and communication to ensure a successful change.
The key considerations involved in merging departments will contribute to a smooth transition and a brighter future. These may include
Strategic Alignment – evaluating shared values, goals, and long-term objectives. A need for a comprehensive analysis of the business models, department positioning, and target outputs will help identify areas of compatibility and cost savings.
Due Diligence – understanding the financial, legal, and operational aspects of both organisations. This process involves assessing assets, liabilities, contracts, intellectual property rights, regulatory compliance, and any potential risks or contingencies.
Cultural Integration – THE most critical aspect of merging organisations is managing the culture. Organisations may have different work cultures, values, communication styles, and management approaches. To safely proceed, fostering a culture that promotes collaboration, open communication, and respect for each other’s expertise is essential for successful integration. (This is where my SLAP technique is invaluable).
Communication and Stakeholder Management – key to managing the expectations of employees, customers, shareholders, and other stakeholders throughout the merger process, a good comms package will be needed, but also a way to feed concerns back to the project is required. Transparency and timely communication helps deep rooted concerns, reduces uncertainty, and creates a sense of trust and stability.
Integration Planning – should outline an integration strategy, potential new organisational structure, key milestones, and timelines for these various activities. It should address areas such as finance systems integration, IT infrastructure, human resources alignment, and a joint operational process.
Talent Management – take it with you. Assessing the strengths and weaknesses of the workforce from both organisations helps identify key personnel for critical roles and can create a roadmap for talent integration. Effective change management strategies, including clear communication, training programs, and career development opportunities.
Continuous Evaluation and Adaptation – a complex undertaking that will require careful planning, continual strategic alignment, and an effective execution plan.
Organizations can plan a path to success and unlock the full potential of a merger. Embracing transparency, open communication, and a people-centric approach will contribute to building a strong and unified organisation and if you need a system to ensure that you take your people with you on the journey, then consider a simple system such as The SLAP technique.
Mergers are now seen as a necessity, with the emergence of new and uncomplicated ERP systems, which can easily handle these projects. My suggestion is to stop fighting this change, and instead get it right so you can enjoy the journey.
If you’d like to know more, or ask me any questions then just use this link and find a time or use my contact form.