Company culture is a key underpinning of all R&D teams
It can often be just as important to developers or product managers as the work itself. Especially in cases where a more established, mature software company is acquiring a less mature company, setting expectations up front so that team members are aware of – and become flexible to – potential change will enable easier and faster integration, and can reduce personnel attrition from the combined entity.
2. Road map planning and governance
On a strategic level, during an integration process, divergent road map planning and governance processes can be identified and addressed to enable any future integration efforts that require combined development efforts, such as data migration, software rearchitecting and tech stack consolidation. Being able to effectively govern, plan and execute on road maps is critical to software development in general, but is especially important for complex activities that are of high importance, high risk and usually time-sensitive – such as those taking place during an integration process.
A combined organization can first identify the stakeholders involved in differing road map governance processes to facilitate effective planning of future integration steps and software development. Some companies operate top-down (i.e., mostly executive decision-making), while others more heavily rely on product managers and middle management to steer the company’s vision. Both approaches work in different situations, but it is critical that all levels (executive to middle management to junior developers) are aligned around one governance process and company vision. Avoiding inefficiencies stemming from disagreements between different stakeholders in an organization is critical for M&A integration success and long-term growth and development.
Additionally, the road map governance process, especially as it relates to inputs and cadence, is key to planning subsequent integration steps. Some companies rely heavily on customer feedback and input to form road maps, while others may conduct return on investment calculations to make road map prioritization decisions. The inputs and requirements gathering aspects of road map planning may not necessarily need to be standardized across an entire organization, but they should be reviewed, understood and evaluated if they are appropriate for a specific team’s requirements.
3. Software development lifecycle (SDLC) practices
Within the software community, Agile and Waterfall are two common processes for managing software development. Each have numerous variants stemming from companies molding a software development framework to fit their specific requirements. While there is evidence that following the Agile methodology translates into more benefits to software companies, the Waterfall methodology can be appropriate in some specific use cases. Within the integration process, executives can identify any differences in SDLC processes and align on what may be the most effective and efficient for the combined entity. Using different SDLC methodologies without the proper thought and planning can result in divergent development timelines, testing methodologies and release cadences, which can disrupt overall cohesiveness and innovation. SDLC considerations are particularly important if R&D teams from both companies are expected to work together in an integrated fashion, either temporarily or permanently, to integrate their respective platforms and continue to build them together and create a cohesive technology portfolio.
Standardizing on similar toolsets within the SDLC can bring uniformity to an integrated company, which can be especially important if company management wishes to allow members of an R&D team to switch teams without much disruption in a multi-product organization. It can also enable more efficient future software development if all teams are using similar (or compatible) tools to develop, test, maintain and implement software.
Careful planning can lead to the success integration of R&D teams
The thoughtful R&D team integration is an often overlooked but critical step to a successful merger of software companies. Companies can save time and money and help to ensure M&A success by focusing on three key areas, including people and processes, road map planning and governance, and software development lifecycle practices.