Overcoming Information Communication Technology Problems in a Post-Acquisition Organization

Corporate acquisitions are once again in the news. Surprisingly, given the human and financial costs involved in such complex transactions, most acquisitions still fail to reach their potential. Though the reasons for this lack of success vary, this paper focuses on one of the least explored dimensions of mergers and acquisitions: communication, and specifically appropriate and effective face-to-face and technology-facilitated communication during a corporate acquisition. In this paper we outline four critical concerns in the use of information communication technologies (ICTs), revolving around reduced commitment, culture clash, lack of trust, and poor timing. These concerns are illustrated in a case study of a high technology company's acquisition of a smaller company. Finally, we offer four recommendations to guide the use of face-to-face communication and ICTS in an acquisition. They are; anticipate communication problems, consciously evaluate appropriateness and effectiveness tradeoffs in face-to-face versus ICT choices, make trust a communication priority, and put a face on the acquiring company. [PUBLICATION ABSTRACT]