Post-merger IT integrations suffer boardroom split

Only half of UK and European business executives think the post-merger integration of their IT systems was a clear success, according to a new study by Accenture.

The study claims a split between the board and CIOs over post-merger integration priorities is one of the key factors in this lack of success.

Not surprisingly, IT integration tops the list of critical factors for 35 per cent of UK and European IT executives but only 26 per cent of business executives agree.

Cultural integration, management and leadership are more important merger success factors for 33 per cent of business executives in the UK and Europe.

The split is also evident in how business managers and CIOs each rate the success of the post-merger IT integration. Whereas half of business executives rated the IT integration as only "somewhat successful" or not successful at all, two-thirds of CIOs rated it as "extremely" or "very" successful.

UK and European CIOs are also less involved in the post-merger integration process than their counterparts in the US. The study found 43 per cent of US CIOs were "extremely involved" in the integration planning compared to just 15 per cent of UK and European CIOs. A third of US IT executives also said their team is extremely experienced in integration planning, compared to just four per cent in the UK and Europe.

Andrew Morlet, partner in Accenture's strategic IT effectiveness practice, said in the report: "The survey findings call into question the degree of alignment that exists between IT and business executives during merger planning and integration. This is critical because when the two groups are not fully aligned on business synergies and how they will be measured then potential value is lost."

Accenture questioned 155 CIOs and 179 business executives for the study, split evenly between the UK and Europe.