Not So Fast

In merger integration, speed counts. But what exactly is merger integration speed and how does it influence integration success? Through research and discussions with executives involved in merger integration efforts, we have developed a nuanced view of speed. We believe that to achieve a successful merger integration, companies should avoid the temptation to emphasize outright speed. Instead, they should look to a set of strategic understandings of speed that center on the following pillars:

There is no absolute merger integration speed. Companies should measure integration speed-and resulting benefits-against the average rate at which the industry as a whole captures integration benefits. Using this measure will help companies not only choose the best merger integration speed but the appropriate mix between acquisition growth and organic growth.

Integration speed requires a selective perspective. Some functions are simply more important to integrate than others-and importance should be defined not by savings potential but by what drives competitive advantage. Understanding the value of these functions and prioritizing them can greatly enhance integration success.

Integration can proceed at its own speed-recognize the differences. When you force all parts of the company to march in lockstep, you risk doing more harm than good. Different parts of the company should have a different integration timetable based on their needs. By allowing each part to pursue consolidation and integration at its own speed, or not at all, you unlock greater potential, creating a richer, more value-creating merger.

Of course, outright speed should still drive many aspects of merger integration. Success in ensuring organizational stability, minimizing customer defections and meeting regulatory requirements relies heavily on quick, decisive actions. However, as the authors explore in this article, moving too quickly in some areas can be just as hazardous as moving too slowly.

The A.T. Kearney authors of this article are Gillis Jonk (Amsterdam) and Michael Ungerath (Dusseldorf).