When this medical device manufacturer purchased parts of its competitor, IT leadership wanted a roadmap to quickly integrate the two organizations without disruption, then support a combined entity with three times the premerger revenues. The assignment would be challenging; the purchase excluded corporate IT knowledge and assets in the acquired businesses. The IT team knew it needed to grow to fulfill its new mandate but was keen to preserve its lean culture. With just weeks to work before the merger became effective, the company needed a rapid response team already experienced in IT integration, with a ready perspective from comparable life sciences clients.
Collaborating with KPMG, our client’s IT organization has successfully scaled to meet the needs of a substantially larger postmerger enterprise, with a parallel strengthening in leading-edge practices, partnership with the company’s core businesses, and strategic outlook.
KPMG drew upon deep experience in IT postmerger integration and IT operating model design to assemble a multidisciplinary team. KPMG service offerings included Shared Services and Outsourcing Advisory (contracting), People and Change, CIO Advisory, and Strategy. The team was configured to act decisively on our client’s behalf during the first 100 days after legal day one and quickly helped them develop a target IT operating model and integration program:
Mergers and postmerger integration are high-stakes, high-contingency-risk affairs. The window to deliver on the strategic promise of mergers is finite, and securing stakeholder trust is critical during the early stages.
While the ability to realize hard-metric efficiencies or synergies from postmerger integration is important, we pay strong attention to human dimensions of postmerger integration: staffing, training, and organizational design. Experience has shown us that these softer metrics are more important indicators of the sustained, long-term health of the IT enterprise.