In the last decade, there has been an uptick in the volume of global Mergers & Acquisitions (M&A) and some of the factors attributed to this rise are as follows:
- the increasing value of the dollar
- improving economies of scale
- rapidly changing industries and digitalization
- need for expansion and diversification of the business portfolio
- complement competency and resource
- converging intra and inter-industry leading to vertical and horizontal M&A integration
Most Mergers & Acquisitions have difficulties when meeting business goals due to culture differences. Hence, a change management strategy must be implemented by upper management, business executives, and human resources (HR) to integrate assets, business processes, products and services, operations, systems, and technology for the merged businesses.
How can an organization enable and motivate the workforce while retaining this important asset?
There are many successful frameworks, best practices, and methods to help with M&A efforts, and a common enabler is the Post-Merger Integration (PMI) Checklist that covers some of the important identity access management (IAM) processes:
- hiring and transfer processes
- onboarding of workforce (employees and contingent workers) and enrolling in benefits
- accessing necessary technologies on day one (1)
- offboarding of redundancies (workforce access, job functions and roles)
The checklist improves the value of the integration, but a common M&A challenge lies in managing, retaining, and engaging an organization’s workforce (employee and contingent workers).
Failure to implement an effective strategy on the part of the business and HR can:
- have an adverse effect on workforce retention due to uncertainty
- negatively impact on business performance and operations, because of the inability to manage day-one access to critical systems, services, and products, and
- allow competitive leverage to competitors.
As best practice dictates, the strategy to improve the odds of success is to reduce the variability within the processes that require workforce engagement.
- Access to workforce day one (1) to critical applications and assets.
- Connect to the workforce (employee) employment benefits.
- Request for access, permissions, and entitlements that are needed during and post-merger for the workforce.
- Provide availability of applications, information, entitlements and permissions.
Administration and Operations:
- View of “who has access to what” in the merger or acquired entities.
- Insight and intelligence into workforce onboarding, offboarding, and provisioning activities, visually.
- Manage delegated administration.
Simeio’s identity-as-a-service (IDaaS) solution is built with all end-users in mind—employees, business partners, customers, citizens, security executives, and administrators. By providing an intuitive and user-friendly interface, Simeio’s Identity Orchestrator (IO) can boost the workforce and customer productivity post-mergers and acquisition by 40%.
Simeio’s IDaaS sets itself apart from the competitors with the following attributes:
- Virtual Directory Service, which allows enterprises to rapidly aggregate disparate identity stores — removing the dependency on expensive and timely directory consolidation projects and mitigating against the risk of merging disparate networks too quickly.
- The ability to plug Simeio’s IDaaS into existing IAM tools and technology via the Simeio Identity Bridge
a choice between existing Simeio’s IDaaS technology stack or preference of the merging entity complete cloud environment that is hosted, secured and managed by Simeio.
- Comprehensive program management for your IAM solutions so your organization can focus on Information Technology (IT) consolidation and merger efforts.
- Enablement for Human Resources (HR) and change management the leverage to focus efforts on onboarding, redundancy elimination, process consolidation efforts over time, and track effort spent on managing workforce engagement.
Overall, the critical focus for entities in a post-M&A phase is to eliminate operational variance, improve information and resources to end-users, and manage workforce engagement proactively.
Gaurav Ranjit is a seasoned business professional with over 10 years of experience in management consulting, strategic advisory, operations management and process transformation in a wide range of industries, with primary focus in the Financial & Banking, Health Care and Technology Sectors.
A subject matter expert in the field of Identity & Access Management (IAM), he has provided business and consulting services to a number of global clients. His expertise lies in identifying business gaps, analyzing current state processes, and developing tactical (short term) and strategic (long term) recommendations to improve operational excellence. Gaurav has worked in two of the major Big 4 consulting firms (Deloitte and Ernst & Young) in an advisory capacity. He has been recognized consistently for exceptional team collaboration, high-pressure performance, and leadership skills.