Data-powered decision-making: The important role of HR tech in M&As

16 Nov
Nakisa Revenue Recognition

Data-powered decision-making: The important role of HR tech in M&As

It’s full steam ahead for mergers and acquisitions.

That’s according to Deloitte’s 2018 “State of the Deal” report, which surveyed more than 1,000 executives about their expectations for M&As over the next year. Nearly two thirds of executives at U.S.-based corporations expected deal flow to increase in the next twelve months. A majority of respondents also expected deal size to grow as well.

With all this new M&A activity, executives are looking to streamline the process to reduce the conflicts, costs, and work time that often come along with large deals.

And they’re increasingly looking at technology to help. The Deloitte survey found that nearly 63 percent of respondents are using new technology solutions to help with integration and reporting.

Big challenges

As our guide to M&A challenges clearly illustrates, with important information strewn across spreadsheets or in filing cabinets, M&A teams of the past often struggled to make timely decisions that had the full view of the organization in mind.

The disjointed nature of these past M&A approaches often led to longer transition times and higher operating costs, along with organizational challenges like staff disruptions and negative impacts on employee morale, all of which affected overall productivity and profitability.

Data-fueled decision-making

Every large enterprise organization needs strong people data and analytics to make key decisions. With M&As, the need for powerful data is even more vital.

Human Capital Management (HCM) and Human Resource Information Systems (HRIS) have helped to centralize workforce and employee data. But their narrow focus on people management—things like payroll and benefits, or record keeping—limit how effective they can be in contributing to the efficiency of large-scale efforts like M&A deals.

Though HR teams have always had a role to play in the data-gathering and decision-making process around M&As, their role in visualizing and planning big transitions has become more prominent in recent years.

Bringing it all together

“It used to be that HR just did as it was told and didn’t have much impact in the overall strategy of the organization,” writes author and futurist Jacob Morgan in Inc. “Today, human resources employees help shape and lead strategy, especially as organizations realize the impact employee experience can have on growth and revenue.”

Part of this shift in HR’s role is due to the powerful transformation in HR technology in recent years. New solutions use the power of AI and analytics to provide key organizational and people data in real time.

Hanelly, Nakisa’s organizational design solution, for instance, uses a cloud-based architecture that allows quick adoption for HR teams and organizational leaders. Unified HR and business data, customizable analytics, storyboarding for organizational and talent decisions, and the ability for different teams in different offices to easily collaborate, provide organizations with the ability to make quicker, better-informed, and more profitable decisions.

When it comes to M&As, these organizational design solutions are a game changer. View our recent webinar with NGA addressing this topic.

There are a series of important steps companies must go through to ensure successful M&A deals:

  1. Understanding your current organizational structures
  2. Defining organizational goals for your M&A
  3. Modeling alternative organizational design changes
  4. Monitoring progress throughout the M&A transition
  5. Tracking change through analytics and reporting
  6. Measuring goal achievement
  7. Planning next steps and developing a system for continuous improvement

Each and every one of these steps cannot happen without powerful, real-time business and people data. That’s why new HR and organizational tools will play such a prominent role in future M&As.

As organizations expect more and bigger deals in the future, they should ensure they’re equipping themselves with the right tools—and the right teams—to make every M&A a success.