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OrgChart as a Tool for Mergers & Acquisitions

October 3, 2017

2:32 PM

By OrgChart Team

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OrgChart as a Tool for Mergers & Acquisitions

Mergers and acquisitions (M&As) have seen a spike in recent times in the U.S. which is generally attributed to low interest rates and positive cash of corporations.[1] Despite an increase in popularity a happy outcome is not guaranteed. A review of the success rates have found that only between 20-33% are ultimately successful.[2]

Executives involved in M&As most often cited “orchestrating and executing the integration process” as the most critical piece of making a M&A work.[3] Planning is key and here at OfficeWork Software we can provide an important piece of the framework to help you to better envisage the future.

Step 1: Consolidate your data:

To properly analyze your workforce data, from both company sources, you’ll need to consolidate your data into one system. OrgChart enables import from most HRIS data sources so both corporations’ organizational structures can be reviewed and compared.

Step 2: Decide what data points matter to you:

It’s likely in most M&A scenarios that talent gaps and talent overlap will need to be identified in order to make efficient restructuring decisions. Factors such as salary, performance and years of experience are examples of potentially important variables to decide how to best rearrange talent. Being able to visualize and assess these in a chart format will speed the decision making process up.

Step 3: Model hypothetical scenarios:

Once the important key variables have been decided upon you’ll want to create and test new organizational structures. OrgChart allows you to drag and drop personnel into different groups and calculate the effects of these changes in real-time.

A clear visualization of both organizational structures involved combined with a powerful tool to manipulate employee data will increase both the speed of integration and chance of M&A success.

  1. https://www.theatlantic.com/business/archive/2016/01/2015-mergers-acquisitions/423096/
  2. https://www.researchgate.net/publication/267765136_LATEST_TRENDS_IN_MERGERS_AND_ACQUISITIONS_RESEARCH_THE_NEW_PATTERN_OF_GLOBALIZATION
  3. https://www.researchgate.net/publication/267765136_LATEST_TRENDS_IN_MERGERS_AND_ACQUISITIONS_RESEARCH_THE_NEW_PATTERN_OF_GLOBALIZATION

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