Jillian Levick
Public Relations Manager
Robert Half Canada Inc.,
181 Bay Street, Suite 820,
Toronto, ON
M5J 2T3
www.roberthalf.ca
Press Releases
Read about our latest research, including results from our ongoing surveys of senior managers and workers, and company announcements.
CFOs Report Companies' Top Struggles are Merging Business Systems, Finances
TORONTO, Nov. 15, 2016 /CNW/ - The greatest pain points for companies going through a merger or acquisition are meshing technology and finances, recent research shows. In a Robert Half Management Resources survey, CFOs report business systems and budgets and finances are the hardest parts of an integration and where the most mistakes are made.
CFOs were asked, "In a merger or acquisition, which part of the other company is most difficult to integrate?" Their responses:
|
Business systems and technology |
32% |
|
Budgets and finances |
31% |
|
Employees and corporate culture |
9% |
|
Business models |
5% |
|
Real estate |
1% |
|
Don't know / no answer |
22% |
|
100% |
CFOs also were asked, "In a merger or acquisition, in which area of the integration do companies make the most mistakes?" Their responses:
|
Budgets and finances |
40% |
|
Business systems and technology |
22% |
|
Business models |
11% |
|
Employees and corporate culture |
4% |
|
Real estate |
1% |
|
Don't know / no answer |
23% |
|
100% |
"It is common for companies to focus on the business transaction and underestimate the complexities involved in integrating the operations after the fact," said David King, Canadian president of Robert Half Management Resources. "Leaders must understand how merging new technologies and detailed financial controls may impact internal functions, and what needs to be done to lay the groundwork for a smooth and successful transition."
King also noted the importance of acknowledging how big changes can take a toll on employee morale and retention. "Make sure teams are updated frequently, and emphasize an ongoing commitment to expanding their expertise by providing them the training and resources to excel within the new structure. Highlighting opportunities for development and career growth throughout the transition will ensure employees remain motivated, productive, and actively engaged in the innovative direction the business is going."
Robert Half Management Resources highlights the following seven tips to help managers whose companies are going through the M&A process:
- Give yourself a head start. The need for due diligence extends from the organizational to the managerial level. Identify skills gaps and technical issues to be addressed, such as challenges integrating financial systems and complying with regulatory mandates.
- Create a unique workplace culture. Rather than forcing staff to adopt the values, beliefs and attitudes of one organization, establish a new vision everyone can get behind. Determine the steps needed to realize the goal, including how to communicate it to employees.
- Make integration efforts an ongoing priority. Ups and downs are inevitable as two organizations become one, and change management must be a central focus. Conduct regular check-ins with staff throughout the transition and beyond to ensure processes, teams and goals are aligned.
- Invest in professional development. Training on new business systems and processes should be a given, but also provide support in areas such as communication, adapting to change and teambuilding. These offerings can help teams get in sync and focus on common goals.
- Maintain communication. Stay attuned to employees' workloads and concerns. Anticipate their stressors, and look for ways to help them navigate the transition. You may not be able to give them any guarantees, but staff should feel confident that you support them and will be a more reliable source of information than the rumour mill.
- Tap all available internal resources. CFOs increasingly are partnering with their operations team and working with business development. Emphasize the need for this type of cross-functional collaboration during a merger. Your transition team should include colleagues from across the organization.
- Bring in outside help. Companies rarely have all the merger expertise they need in-house. Work with experienced consultants who can help your firm navigate the transaction and ensure compliance with regulatory demands. Interim professionals can also step in to bridge skills gaps and handle projects for staff members who shift their focus to the merger.
About the Research
The survey was developed by Robert Half Management Resources and conducted by an independent research firm. It is based on telephone interviews with more than 270 CFOs from a stratified random sample of companies in Canada.
About Robert Half Management Resources
Robert Half Management Resources is the premier provider of senior-level finance, accounting and business systems professionals to supplement companies' project and interim staffing needs. The company has more than 140 locations worldwide and offers assistance to business leaders and consultants at roberthalf.ca/management-resources. Follow us at roberthalf.ca/blog and @RobertHalf_CAN on Twitter for additional workplace advice and hiring trends.
SOURCE Robert Half Canada
Image with caption: "Merging two businesses is no easy feat. (CNW Group/Robert Half Canada)". Image available at: http://photos.newswire.ca/images/download/20161115_C2779_PHOTO_EN_818410.jpg
