Using an IAM in Mergers, Demergers, and IPOs

In the dynamic landscape of mergers, demergers, and IPOs, one constant remains: no two organizations are identical. While the world may perceive similarities, the nuances in corporate culture, demographics, history, and market approach are undeniable. Let’s set aside personal emotions, power struggles, and positional battles for a moment and examine the effect of change on Identity and Access Management (IAM).

The Landscape of Complexity

From a structural viewpoint, challenges may include:

Inflow-Flow-Outflow processes differ between merging organizations.
Functions carry different titles.
Wage structures vary.
Company cultures clash.
Company infrastructures will be different.
Rights to environments and applications are distributed differently.
LPDAP directories follow distinct structures.
Roles and groups are set up from different philosophies.
The use of cloud infrastructure may vary between organizations and will need to be consolidated post-merger.
Similar business processes may use different applications.
There may be multiple employment contracts. One person working in two different organization units, one person filling multiple positions, or, for example, several people who fill an FTE position.

Depending on the sector, these challenges may manifest in diverse ways across the globe. For example, in Europe, Oxford Computer Group works with many organizations in the government and healthcare sectors that see a lot of changes in departments and organizational units, for example after elections.

An added complication, we have seen, is when individuals have multiple employment contracts working for different departments or even employers. Do employees inherit both sets of rights in the event of a merger? If there is an overlap period, how long should it last? Is there a risk of a division of responsibilities during the overlap period, and what is the solution? What should happen if a person works part-time in both merging organizations, but in various positions? The latter may seem exceptional, but it occurs in more than half of the mergers and demergers Oxford Computer Group supervises in Europe.

And of course, as if these challenges are not enough, there is added pressure from stakeholders, owners, and/or shareholders expecting the merger or demerger to be arranged quickly and efficiently.

IAM as the Guardian of Seamless Transitions

Enter IAM – if your IAM is well-designed, it will store vital information about people/identities, groups, roles, rules, and organizational structures. This treasure trove of data becomes indispensable for the controlled merging or splitting of organizations.

A Controlled Transition Process

While the complications of mergers and demergers may extend over months or even years, IAM tooling provides a lifeline. Recognizing formal, contextual, and informal organizational structures, it can offer transparent reporting to ensure control and can even notify stakeholders of potential violations.

Temporary Processes with Long-Term Impact

During transition periods, organizations need to employ temporary processes that must be not only manageable but also auditable for all involved. IAM ensures that organizations remain in control as they navigate the intricate process of coming together or parting ways.

In conclusion, IAM isn’t just a tool; it’s the guiding force in maintaining control, transparency, and efficiency during transformative organizational phases. As stakeholders, owners, and shareholders anticipate swift and efficient mergers or demergers, IAM steps in as the linchpin for a seamless and auditable transition.

Here’s to navigating transformations with confidence and control!

If you would like to discuss how to make better use of your IAM system, contact us now.

(Article originally posted on Trusted-ID website)