In the world of mergers and acquisitions, the terms “complex” and “complicated” are often used interchangeably, but they represent very different challenges. Misunderstanding this distinction can lead to poor planning and unnecessary confusion during the integration process.
To understand the difference: Complexity involves unpredictability and unknown outcomes, where variables interact in ways that are difficult to foresee. On the other hand, complication refers to systems that have many parts but are fully understandable and can be easily managed with the right approach to coordination.
Complex
Complicated
In most M&A transactions, the processes themselves aren’t inherently complex. Moving data from one system to another or harmonizing financials or on-boarding employees, are tasks that people have completed before. The real challenge lies in managing the many inter-dependencies between different functional areas and entities—complications that require clear communication and intentional coordination.
Complication Unraveled
For example, imagine two companies with different financial systems that need to be merged. The systems themselves are well-understood, but integrating them involves coordinating minimally between finance, IT, and operations, each with its own workflows, workloads, and timelines. These dependencies can create bottlenecks, or worse, if the contributors involved don’t have the right information at the right time.
CRISP™ simplifies these complications by ensuring that each contributor gets exactly what they need to do their part, on or before they need it. It does this by explicitly identifying and tracking who needs what, not through a complex plan or wastefully redundant status collecting, but through simple mechanisms that help all contributors stay aligned and ready to act when their moment arrives.
Complexity Misinterpreted
Many organizations make the mistake of treating these interdependencies as complex problems, leading to unnecessary layers of management or over-engineered monitoring solutions. This approach adds more confusion, as individuals spend far more time than warranted managing the process itself rather than delivering what’s needed. CRISP cuts through this by offering a clear, straightforward process that focuses on eliminating complications through deliberate communications.
By recognizing that most M&A issues are not complex but complicated, CRISP™ addresses them head-on with transparency and communication at every stage. There’s no need for elaborate systems when the core problem is a simple, and easily identifiable, lack of alignment between contributors. The CRISP™ Method ensures that everyone is empowered to act effectively, reducing confusion and ultimately accelerating the integration.
Conclusion
In the end, it’s not about managing the unknown—it’s about managing the known, and doing it well. CRISP™ helps navigate the complications of M&A by providing clarity and ensuring that individual contributors are fully prepared to do their part in the integration. This simple shift in approach is what makes CRISP™ a game-changer in reducing unnecessary delays and frustration.
With new from clarity understanding the difference between complication and complexity, the next step is understanding how to tackle these challenges in real time. In Post #3, we’ll explore the common breakdowns in communication that often derail M&A integrations and how most of them are self-inflicted.
Thanks for reading! If this post has sparked any new ideas or questions about how to optimize your M&A integrations, I invite you to join one of my live intro sessions. Each session is 30 minutes and limited to 5 participants for an interactive, in-depth look at how the CRISP™ method can make your next integration faster, better, and more efficient.
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CRISP™ is a pending trademark of Exertus, Inc.
