The primary integration issues facing the newly acquired units are (1) the need for a clear vision and understanding in the implementation process; and (2) people and the central role they play in the integration effort. Before the integration, IBM was a corporation, and PWC was a partnership. This explains why the companies have a different vision of their objectives and success strategies. In addition, both of the companies have different idea of working with their clients. In particular, PWC paid more attention to consulting matters, and IBM aimed to focus on infrastructure issues. The other potential problem that is connected with PWC former clients is in the fact that they might be scared away if they will be pushed to utilize IBM-based products rather than PWC ones, which were more appealing to them before the integration process. Besides, both companies have their own position regarding the corporate culture. The issue of corporate culture should not be underestimated because the most valuable resource that IBM receives with PWC is its body of workers. In IT business, the most precious utility that an enterprise has and what makes it successful is its human recourse.
Therefore, IBM is facing a real problem because it should integrate the new unit in such a way, which would not make the PWC workers leave the company.
To address these issues, IBM developed a plan of three stages. First, IBM established ahead of its new unit based on PWC and developed a basic operation model for this unit. IBM had a good understanding regarding the best assets they received with PWC. They clearly identified these assets as the personnel of PWC because the level of qualification and the skills of these people were the key important points for the success of the new integrated unit. Thus, a special approach was developed to encourage PWC workers to stay. The central point in this approach was to offer PWC employees retention incentive packages. During the second stage, IBM continued working on a new operating strategy for its unit. In particular, teams for integrating the different key areas in the business were created. Also, all the essential details to new operational models were added so that the new business strategy for the unit would be put into practice in the most efficient way. Finally, during the third stage of integration, the IT systems of the two firms were integrated. As a result, the actual integration of PWC in IBM has taken place.
Next, to continue as a successfully integrated corporation, IBM should constantly monitor all the areas, where serious operational issues were identified. Again, IBM should pay much attention to PWC employees and their level of satisfaction in the new integrated business. In case particular problems are identified, the company’s management should take urgent action. Also, the work of teams responsible for business integration should be regularly assessed. These teams should be stimulated for their achievements, and offered new perspectives on a regular basis, so that the new level of integration could be developed constantly. Besides, as corporate culture was different in the two firms, the personnel management should make it their primary objective to develop such a company culture that would make PWC employees feel welcomed, highly valued, and would stimulate to continue demonstrating an excellent level of professionalism.
In addition, the company’s assets should be controlled by a scalable and simple organizational structure, which is sustained by standardized processes that allow employees to focus on important matters only. The company should regularly develop and implement good leadership techniques; work on the availability of human and material resources; use technological excellence, and trace the latest IT tendencies in concert with the company’s disciplined business approach; introduce innovations and proper utilization of know-how. The company should hire and support competent employee managers who may contribute to the success of the organization by carrying out effective recruitment, selection and training of the employees, and by encouraging the personnel from PWC.
It should strive to have effective human resource strategies including regular employee training, management development, health and safety, fair remuneration, fringe benefits and graduate programs to help in building a competitive workforce. The company should pay great attention to making sure that the right material and non-financial reward is offered to each employee in its new unit. The other important trends for the new IBM unit are differentiated offerings through diversified customer segments; high level in coping with change and complexities through the creation of management roles and organizational structures; and quick adoption to external changes.
Finally, to continue successfully during the process of integration, IBM should develop an understanding of PWC products and processes; have a clear vision of the cost of integrating PWC and supporting the activity of the new blended unit; accompany the process of integration by using all the necessary documentation; regularly carry on debugging work; continue working on making technology, utilized in the unit, fully compatible; and ensure active employee participation in the dialogue directed to eliminate all the possible problems of integration.