Daily Archives: August 23, 2011

Three types of IT people in a company acquisition

If you work on a company acquisition and have the opportunity to help transition the new company into the parent (acquiring) company, , , congratulations. You are on the right side of the deal.

Completing the deal is the easy part. All the heavy lifting comes after the companies agree to merge, , , now it is time to begin the transition.

Even if your company decides to let the new company operate pretty much “as is”, there will still be transition objectives. At a minimum your company will want one Payroll, Human Resources, Accounting, Accounts Payable and Purchasing functions most likely, , , and probably one e-mail system.

But let’s assume the objective is to eliminate the new company as we see it today and merge everything into the parent company’s operations. This includes all technology platforms and the IT organization.

When you look at the transition effort ahead, the new company you have just acquired has up to three types of IT employees in the IT organization:

Group 1 – No longer needed
This group includes people who are no longer needed either for temporary support, transition project work, or for the long term. You will determine a way to let them go sooner than later.

Group 2 – Transition employees
This is the difficult group. You need these people for only a temporary period of time, , , either to provide ongoing support for the old systems you plan to replace or to help in transition projects. Once the technologies are converted to the parent company’s platform you will terminate them.

Group 3 – Long term keepers
You want these people to be part of your company. They are the thoroughbreds who are capable of doing great things, , , you want them to stay with you.

In my next post I will discuss how you develop an incentive plan for the Group-2 Transition employees so they stick around to help you even knowing they will lose their jobs when the transition is completed.