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Focus

By Paul A. Eisenstein  |  Posted 03-18-2002 Print

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: Merger Management">

Focus: Merger Management

What is it? A step-by-step process that helps companies and IT departments manage organizational and cultural change— before and after a merger, acquisition or alliance is announced. The goal: tech-led integration of companies.

The upside: By demonstrating the ability to address management and cultural issues—as well as align IT infrastructures with business goals—CIOs can use the merger- integration process to deliver value and help drive future strategy.

The risks: Cost-cutting targets set by the CEO are often based on simplistic assumptions; many CIOs also face unrealistic deadlines for integrating complex technology—and all without a break in service or performance.

Business payoff: Gartner Inc. says CIOs who fail to do premerger planning add 20 percent to 50 percent more time to the period given for achieving business goals. They also hike the cost of a merger by at least 25 percent of the combined IT budgets.



 

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