Reorgs & Mergers Using Org Charts
OrgChart workforce planning software helps leaders prioritise, and plan for reorgs and mergers
As was experienced in many business domains, early 2020 saw a slow down in merger and acquisition activities. By late 2020 however, according to a June 2021 M&A market survey by DealWare of the U.S. market, 72% of respondents reported deal counts were the same or higher than the previous year.
In any organisational restructuring or acquisition, stakeholders must work together to make tough decisions and find optimal solutions. Business priorities must be aligned, and answers to questions must be found quickly for successful transitions.
Org Chart software can help accelerate reorgs and mergers by providing an easy way to visualise workforce structure, and communicate proposed models during this critical time period. Planning is key, and our automated charts can provide an important piece of the framework to help better envisage the future.
A simple three step process can be followed to facilitate reorgs and mergers using org charts:
Step 1: Consolidate the Data
To properly analyze the future workforce, data from both company sources need to be combined. OrgChart enables import from most HRIS data sources so both corporations’ organisational structures can be reviewed and compared.
Step 2: Decide Which Data Points Matter
In most M&A scenarios talent gaps and talent overlap will need to be identified in order to make efficient restructuring decisions. Factors such as salary, performance and years of experience are examples of potentially important variables to decide how best to rearrange talent. OrgChart enables clear visualisations of the data in a chart format to speed up the decision making process.
Step 3: Model Hypothetical Scenarios
Create and test new organisational structures once the important key variables have been decided on. OrgChart allows modeling personnel movement into different group,s and calculates the effects of these changes in real-time.
As an example, our experts worked with a large internet search company (30,000+ employees) that acquired a large cellular hardware manufacturer (24,000+ employees). A joint company team of business executives and HR analysts were tasked with developing a new organisational plan by identifying which employees to retain or not, based on a set of established criteria.
Our technology was selected because of its ability to merge multiple HRIS data sources then visually work with the combined data. Relevant data from Workday and PeopleSoft (e.g. job titles, performance ratings, compensation amounts), were imported into OrgChart’s analytics and visualisation tool. With OrgChart, they quickly developed a set of detailed heat maps, organisational charts and other views to best determine the design and cost of the new organisation. Merged HR data was automatically transferred to the surviving HRIS system.
Typically this type of major project would take up to ten weeks. With OrgChart, the project was completed in only two.
Key features of our software used to assist reorgs and mergers
Data Consolidation
Analyze both workforces by importing from multiple HRIS data sources so both corporations’ organisational structures can be reviewed and compared.
Secure Planning & Sharing
Securely create plans and communicate them to the appropriate audiences at the right time.
Drag & Drop Tools
Graphically restructure org charts with ease in real-time with key stakeholders for dynamic presentations of the data.
Workforce Analytics
Add a dynamic range of HR metrics to charts, including competencies, span of control, diversity markers and budget rollups.
Multiple Scenarios
Model hypothetical scenarios of important key variables then refine and compare them to explore “what if?” possibilities.
Collaboration Module
Typically various departments of the organisation require input into reorgs and mergers. Keep track of the changes made by individuals with the module specifically built for team planning.
If you are in the process of a reorg or merger at your organisation and are interested to find out how our OrgChart software can be applied to smooth the transition, contact our experts by applying for a free demo.
