Successful integration, part 1/3 – integration doesn’t happen by itself

Companies are bought, sold, and merged frequently. However, studies, such as the KPMG study in 2018 show that integrations are successful in reaching their goals in only about half of the cases. Changes required in integration often focus only on valuation, contracts, and financing. Companies see room for improvement, especially in integration planning, related communication, and cultural integration. 

Investing in the actual integration and taking the related elements into account makes it possible to achieve both the financial and other goals set for the integration.

In integration, the organizational structure, operating models, and methods, as well as the guidelines and systems of two different companies or functions, are combined. A successful integration guarantees the best possible start for the integration of the companies’ operating cultures. Due to the importance of integration, it is essential to pay attention, early in the negotiation and contract phase, to what is expected to happen in the organization after the transaction is completed.

Another point that draws attention to KPMG’s research is the use of external help in the integration phase. 88% of international organizations use the expertise of a party outside the organizations to ensure the success of the integration. In Finland, only 37% of organizations do this.

SUCCESSFUL INTEGRATION REQUIRES WORK AT THE PERSONNEL LEVEL

A well-implemented integration is an opportunity to grow the organization and create a new culture of working together. From the employee point of view, successful integration also offers an opportunity to deal with the concerns related to the change and to realize the possibilities brought by the new situation.

If there is a need to integrate the organizations’ operating models, processes, and tools, it is worth investing in them as soon as possible after initiating the change. The most fertile ground for changes that involve personnel who are transferring is early in the process. This applies to solutions that change the organizational structure, teams, personnel tasks, operating models, and guidelines.

To make it easy for the receiving organization’s personnel to accept new members of the work community, their thoughts must be listened to, and their needs taken into account.

Regarding integration, it is essential to remember that good planning is important and that the promises made when the integration is announced are redeemed only by actions.

INTEGRATION SHOULD BE LEAD

The elements needed in integration can be viewed from several different perspectives. Practical matters include premises, machines, equipment, and systems. The organization, front-line staff, and management also require special attention to ensure the success of the integration. It is also necessary to think about possible updating needs of the management system in the new situation.

To get genuine cooperation and a sense of community off to a good start, special attention must be paid to the transferring and receiving personnel and their different needs. The moving staff should be offered situations where they can ask questions, reflect on the changing situation, and direct their thoughts to the new ways of working. These situations can be discussions in a small group or individually. The essential thing is to provide a space where people can talk about their worries and get excited about the opportunities brought by the new situation. The receiving personnel often have similar concerns and questions about the integration, and they also will need to be heard and allowed to process the change.

In addition, the integration must offer encounters for both personnel groups. At their best, such encounters are interactive, well-planned, and -prepared so that they create a shared understanding and a joint future in goal- and solution-oriented ways. At its simplest, encounters can be facilitated discussions. More comprehensive and scalable encounters can be arranged using the dialogical method (see info box below) that works even for large groups.

In addition, open, professional, predictable, and planned communication is needed. Regarding change communication, the most crucial element is the regularity of communication. If there are prolonged breaks in communication during the change process, people tend to read this as concealing information and hiding things. In change communication, it is important that if there is nothing new to communicate, the fact that there is nothing new to share is nevertheless communicated.

• The dialogue method is based on pedagogically designed and co-created dialogue tools used in peer discussions in small groups.
• Dialogue tools enable a solution-oriented, meaningful, and goal-oriented discussion about common topics, such as a new strategy or working methods. Topics are agreed upon with the customer as part of the joint planning process. This ensures that the content responds to a genuine need, adding more value to the organization and the participants.
• Dialogue tools are designed to be pedagogically insightful and visually inspiring, utilizing the best practices of adult learning.
• Dialogue tools are designed in virtual and physical form, and the most suitable method for each situation is chosen. This enables an easily scalable interaction process throughout the organization – also in different languages.
• Exciting and engaging peer discussions leave a more positive lasting memory and thus optimize the time spent on the workshops vs. effectiveness.