RAPID Onboarding of Acquired Companies to your ERP
Many companies do not realize successful economies of scale and resource synergies from a merger or acquisition because they are unable to rapidly consolidate disparate organizations and business systems. Organizations currently on or considering a Merger and Acquisition (M&A) path will be tasked with bringing those companies together. One of the most critical projects in this endeavor will be implementing the selected go-forward ERP (Enterprise Resource Planning) system. A properly executed onboarding strategy will enable you to recognize ROI by leveraging the scale of the new organization, and capitalize on the synergies of the merger or acquisition.
“RAPID” in the title of this article represents an acronym and a framework for executing a fast-tracked ERP implementation. RAPID actually includes an acronym within an acronym.
- Reports: Reports include any business intelligence output, such as: dashboards, printed reports, transactional information, external data sources, etc.
- Actions: The near-term action items resulting from each meeting should be tracked to completion.
- Policies: All policies—especially customer-facing ones—of the acquired company should be documented, and policy changes should be communicated to the appropriate stakeholders.
- Issues/Decisions: As operational, personnel, or technical issues are uncovered, it is important to track those issues to completion with ownership and due dates. The resolved issues should have the decisions or solutions documented and filtered off your list.
Decreasing the amount of time to assimilate all entities onto one system will improve your timeline to return on investment of the merger or acquisition. Another tactic to rapidly implement acquired companies includes an effective project kickoff session, i.e., a Change Acceleration Process (CAP) workshop, to minimize employee resistance, attrition, and general dissatisfaction.
Communication is a key part of change management, and having an expert onsite that is skilled in this area is helpful. After all, if you fail to clearly describe the reasons for the acquisition and its expected impacts to your customers, your competitors will certainly do it for you.
Along with the technical migration, equally important projects to pursue during the
M&A process should include:
- Human Resources Plans, Systems and Policies, such as: payroll, benefits, etc.
- Marketing: A co-branding program is typical, with the acquired company’s logo being phased out over time
- Sales territory alignment
- E-commerce Web site shopping permissions
Approaching each aspect systematically, via the Actions, Policies, and Issues/Decisions execution steps of the framework above, will allow you to properly scope the project, manage the strategic deliverables, and work towards a RAPID implementation.
Posted by Jon Snow, Director, Business Consulting Services at Epicor