Business 2.0

December 6, 2007

Product integration issues post merger or acquisition?

Filed under: Acquisition, Articles, Integration Issues, Merger, Product, Product Management — Yogesh Hublikar @ 3:32 pm

There was a survey done by ZIGZAG Marketing, which was based on common issues companies
experience following a merger or acquisition.

Here is the survey results, might help you.

-Yogesh

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ZIGZAG Marketing recently conducted a survey to uncover the most common issues companies experience following a merger or acquisition. Many of these issues have a direct impact on product management and product marketing. The survey was conducted in October 2007. Over 200 professionals at all levels responded to the survey. We’re pleased to present the results.

Post-Acquisition Survey Results

1. My company has been through a merger or acquisition

Within the last 6 months 34 %

6 months – 1 year 13 %
1 – 2 years 14 %

More than 2 years 39 %

2. Before the merger or acquisition was finalized:

Strategy & Operational Plans were finalized for the combined
companies 14 %

A strategy was completed but no operational plan 28 %

Only an operational plan was completed 15 %

Neither 43 %

3. Please rate the following post-merger/acquisition challenges from 1-8 with 1 being the most challenging:

1. Debates on technology platforms

2. Technical integration of products

3. Lack of consensus on target markets

4. Mixed marketing messages

5. Communicating across remote locations

6. Ineffective/divided sales force

7. Disagreement on product direction

8. Aligning people to support a new organization

9. Other

4. Now that you have the benefit of hindsight, what would you have done differently?

Most Popular Answers:
• Better planning and faster merge implementation
• Challenge people to align with strategy or leave
• Get a clearer operational plan in place along with a product direction.
• Better communication of strategic direction throughout the company
• More time planning & strategizing
• More emphasis on how to integrate (infrastructure & culture) of acquired businesses!
• More upfront planning, more aggressive cuts upfront
• Communication announcements weekly
• Push for a 3 year integration plan with milestones, accountability, and measurable results
• More face to face meetings, faster decisions on product platforms and sales territories. Celebrate and communicate early wins.
• Spent more time focusing on the right management
• Build better communications plans
• Ensure the target market and sales strategy was aligned from day 1
• Better planning and communications
• More effort to combine sales forces
• Leave the acquisition as a standalone business unit and NOT try to integrate each of its departments into the acquiring organization.
• Look at situation for what it was, not what it promised to be
• Read Who Moved My Cheese beforehand
• Integration of sales teams, clear market messages, operational plans, etc.
• More planning. Better communication with rank & file on company direction
• Should have left the company earlier

5. My role in the organization is:

Senior Executive – CXX, SVP 13 %

Senior Manager – VP, Director, Sr. Mgr 48 %

Manager 28 %

Engineer 2 %

Other Staff Professional 9 %

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Do visit this site for more information: http://www.zigzagmarketing.com/

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