Managing post-M&A change to increase effectiveness and ensure optimisation

It's been a turbulent few years for businesses against a backdrop of unprecedented global pressures and ensuing economic and social disruption. Innovation and the art of pivoting have been key to sustaining commercial success and driving growth. For some, one way to pursue growth is through a merger or acquisition (M&A). Undertaking a deal is a bold move and can be a daunting prospect, but with clear strategic direction, the M&A route can create a wealth of opportunity to promote best practice, open new markets - and ultimately improve balance sheets.

Embarking on a journey

But once you've done the deal, popped the corks, and toasted to future successes, the work doesn’t stop. It’s then time to begin navigating the complexities of post-M&A change management. The aim post-M&A is to have a strategy in place that promotes synergy between merged businesses; supply chains, which often span operations from end-to-end, have a key role to play in this. It's imperative that a clear strategy to achieve the opportunities you identified pre-M&A is created and implemented to ensure a smooth and successful transition.

Increasing effectiveness, ensuring optimisation

The early transition period is an important stage for identifying potential challenges, and it is critical that businesses look out for early teething issues to avoid them gaining traction and compromising the effectiveness of the operation. As you navigate this process, there are some key factors to consider:

Integrating supply chains

If supplier planning wasn’t done pre-M&A, it is important to undertake an audit of current vendors to identify any duplication and understand opportunities to streamline and optimise supply chains. This process should be a priority; however, it should not be concluded until you have a full understanding of all suppliers and contracts.

People matter

Some of the biggest challenges post M&A can relate to people and managing change across teams effectively is vital for providing stability and support for colleagues. Keeping people at the heart of the process is the key to success. Consistent, proactive communication delivered with empathy should be a priority from the outset. This might involve handling sensitive situations such as redundancies, relocations, and warehouse closures – all of which have a human impact on the way employees navigate their working lives. On the flip side, some individuals will be taking on different roles and responsibilities and it’s critical that they feel engaged, empowered, and part of the journey. 

Take heed of the due diligence you’ve already undertaken

If you had the time and resources to undertake comprehensive supply chain and logistics due diligence prior to making a deal, it makes good business sense to put this to use. Allocate resources to monitor and optimise what was unearthed during the due diligence period to ensure your deal doesn’t fall short in practice. This should be an ongoing process as, while adequate time invested in pre-acquisition planning should measure the risks, new challenges have the potential to crop up as markets continually evolve and the consumer landscape shifts. Continually evaluating and seeking further improvements is a discipline, which, alongside a clear strategic direction, will drive opportunities for continue optimisation.

Supply chain success

Merging or shifting away from existing technology systems and interfaces can also challenge people and processes in the short-term – and implicate long-term productivity if not nipped in the bud. Where significant changes are being made to digital supply chain processes, such as moving to a new enterprise resource planning (ERP) system, consider operating dual workstreams in the first instance, continuing existing operations while distinct, new operations are established and bedded in. This enables the team to transition more gradually – and can help to provide a safety net if any issues arise. 

Ultimately, embarking on M&A means you are navigating new and unchartered waters in an ever-changing business environment. As we discussed in our good practice guide, there isn't a one-size-fits-all model, but taking a strategic approach that puts people at the heart of the transition process means you can face the challenges and embrace the change as your business continues to grow and deliver maximum return on investment.