Creating a Kronos Strategy for a Company Merger or Acquisition
When a company decided to pursue a growth strategy that involves mergers and acquisitions, the “why” is often much more thought out than the “how.”
That’s a mistake.
IT has come to play a crucial role in our organizations today and should be considered just as carefully as financial information during the due diligence process.
Otherwise, your smart acquisition can quickly become an employee relations nightmare… After all, nothing says “this isn’t going to work” or “we don’t value you” to new employees like making mistakes when it comes to time tracking or payroll.
So how can you avoid that nightmare?
Step 1: Reevaluate Your Current Technology
First, it’s worth considering if the technology you have now is conducive to your new growth strategy.
Can it scale as you grow? What will the process of adding an influx of new employees look like? Are there ways you can streamline your processes before a potential M&A target has even been identified?
Kronos is fairly flexible and scales well for most companies, but it’s worth thinking about your current processes for inputting new employees. How automated is your current process? Kronos can be integrated with your other HR tools to largely automate this process. If you don’t have that set up, it can offer significant time savings to set this up before acquiring another organization.
Step 2: Talk Technology Early
Once you’ve determined that the new, larger organization will remain on Kronos, the next step comes once a target for a potential merger or acquisition has been identified.
Are they already on Kronos? If not, will you keep the systems separate initially, or simply add their employees to your existing system? What new customizations — work rules, genies, etc — will need to be added to that system?
This is especially important if if the new acquisition is in another state.
If they’re already on Kronos, you’ll want to do a thorough review of their system during the due diligence process. What version are they using? What modules? What customizations do they have set up?
Step 3: Creating A Kronos Merger & Acquisition Plan
Once you’ve finished evaluating the separate systems, it’s time to create a plan for merging the two systems.
In most M&A scenarios, companies find it’s useful to maintain the status quo at first, keeping both systems operational while other aspects of the M&A plan are implemented… but this isn’t a long-term solution. Keeping two systems live comes with additional, otherwise-unnecessary time and effort for both the IT team and the rest of the organization.
That means the first step of your plan is likely going to be determining the ideal timeline for merging systems at your company.
Your plan should include, at a minimum:
- Adding any additional Kronos customizations that are needed
- Implementation of any additional Kronos modules
- Integrating Kronos with any other new IT solutions that will be in use
- Migrating data
- Testing for all systems
- End user training
- A master timeline for all of the above
- Evaluation of available resources, including whether you’ll want to bring in Kronos Consulting help.
The Last Step: Implementing Your Kronos M&A Plans
Diligently planning, researching the solutions in use and that you want to use, and keeping everyone involved in the loop throughout the process will allow the final step of the process — implementing your plan — to happen as smoothly as possible.
According to some reports, between 50 and 70 percent of M&As either fail outright or fall short of their goals. And often, one of the causes of that failure is a lack of planning when it comes to business and IT integration.
Following the steps above should help prevent you and your organization from becoming “just another statistic.”
Want more help? Download our 12-Month Acquisition Technology Planning Checklist to make sure you don’t miss any of the steps above!