Ruankao System Planning and Management Engineer (Senior) study materials
Ruankao System Planning and Management Engineer (Senior) study resources

Stabilising a Post-Merger IT Group in 100 Days

Ruankao System Planning and Management Engineer (Senior) · Put your knowledge to work in context.

All case studies

Stabilising a Post-Merger IT Group in 100 Days

Two mid-sized engineering firms merged eighteen months ago. The combined IT group has 140 people, still organised as two inherited teams with two change advisory boards, two service desks and duplicate monitoring stacks. Three of the eight senior IT managers have resigned, attrition is running at 18% against a 9% market rate, and two critical ERP migration milestones have slipped. A pulse survey scores 'clear goals' at 2.4 out of 5 and 'I know who decides' at 2.1. The CIO, who came from the larger firm, communicates mainly by monthly email and has not visited the second site, 900 km away. The integration programme manager reports project status to a steering committee that has not met since March. The CEO wants a 100-day plan that stabilises delivery, and has ruled out a general pay rise, though a limited retention pool of CNY 3 million is available.

1. Diagnose why delivery is slipping, and set out the first 30 days of the 100-day plan.

Read the worked answer

Diagnosis: this is a decision-rights problem wearing a communication costume.

  • Two CABs, two service desks, two monitoring stacks: every cross-estate change needs two approvals, so lead time roughly doubles. The 2.1 score on 'I know who decides' is measuring that structure, not morale.
  • The steering committee has not met since March. Escalations have nowhere to go, so decisions stall or get made informally and re-litigated. The two ERP slips are more likely decision latency and lost legacy knowledge than engineering effort.
  • The CIO from the larger firm communicating by email and never visiting the 900 km site confirms the smaller firm's staff in believing this is an acquisition, not a merger. That belief is the mechanism behind 18% attrition against a 9% market rate: people leave when the future is illegible, and half of the attrition is avoidable.

Days 1–30:

  1. One decision forum. A single interim change authority under one chair, with a six-item decision-rights table published immediately and a fixed cadence.
  2. Reinstate the steering committee fortnightly for 60 minutes, one-page status format, standing rule that no decision leaves without an owner and a date.
  3. Site visit in week 2 - a full day, listening sessions without local management filtering, and a commitment list published within 48 hours with names against items.
  4. Sixty-day scope freeze on non-critical work so the programme stops thrashing.
  5. Integration principles on one page: one service desk, one CAB, one monitoring stack, with target dates. People tolerate bad news; they cannot tolerate ambiguity.
  6. Start retention conversations against a critical-role list before the next resignation sets the frame.

2. Design decision rights for production change across the two estates. Give a RACI for two contested decision types and explain how you would get it accepted.

Read the worked answer

Rule: a RACI that covers everything is used by no one. Define six decision types only. The two most contested:

Decision A - approval of a standard change affecting both estates

Role Party
Accountable Single combined change manager
Responsible Technical approver from the owning estate
Consulted Affected service owners; security if the data classification changes
Informed Both service desks; the retired second CAB

Decision B - emergency change during an ERP cutover

Role Party
Accountable Integration programme director
Responsible ERP application owner and infrastructure lead jointly
Consulted Business process owners for affected finance processes
Informed Steering committee; internal audit (log only)

Why joint responsibility works in B but not A: during a cutover the two estates cannot act independently, so one accountable owner with two responsible parties matches the work. In steady-state standard change, joint responsibility would recreate the two-CAB deadlock under a new name.

Getting it accepted:

  1. Draft it with twelve people in one room - both change managers, both service desk leads, the ERP owners, security - not by email.
  2. Resolve conflicts live and escalate at most two items to the CIO as options, not open questions.
  3. Publish one page with a named owner per decision type and a 30-day review date.
  4. Enforce by routing: approvals arriving through the retired channel are returned. Structure changes behaviour faster than exhortation.
  5. Review at day 30 on a single measure - median decision lead time - with a baseline captured today.

3. How would you spend the CNY 3 million retention pool, and what non-financial levers would you pair with it given no general pay rise?

Read the worked answer

Do not spread CNY 3M across 140 people - that is about 21k each, which buys no loyalty and creates an entitlement.

Allocation logic (18-month horizon, deferred with clawback):

  1. Find critical roles by single-point-of-failure analysis tied to the two ERP migrations: who alone holds the legacy data model, the interface contracts, the regulatory reporting logic? Expect 20–30 roles, not 60.
  2. Segment. Eight to ten 'must not lose' people get 150–200k each over 18 months, deferred and paid in thirds with clawback on voluntary exit. The next fifteen get 80–100k. That totals roughly 2.4–2.6M, leaving about 0.4M as a spot pool for unexpected resignations.
  3. Frame the award as a conversation, not a letter: what the person is accountable for in the combined organisation, which role they will hold, who they will report to. Money without role clarity loses to a competitor offering both.

Non-financial levers, which address the survey scores directly:

  • Named roles in the target operating model published within 30 days. A score of 2.1 says people cannot see themselves in the future.
  • The decision-rights fix from task 2. The largest driver of frustration is not pay; it is re-litigating the same decision for months.
  • Visible project choice on the ERP migration for high performers - the work people would rather do.
  • CIO presence: repeated site visits and a monthly all-hands with real answers. Monthly email from 900 km away is itself a retention risk.
  • Audit the appointment pattern. If exit interviews show the three managers left because senior roles went to larger-firm candidates, paying to retain the next tier treats the symptom. Fix selection first, or the pool buys eighteen months of the same problem.