Integration: A Symphony

Worldwide, companies face serious challenges in integration. Research reveals
that more than 50% of mergers fail on account of lack of integration. However,
Aegis has successfully integrated eleven companies and that too within a very
short period of time. How did it achieve this? So, is there a science behind
this or was it just getting eleven times lucky? (what makes for business
innovation at Aegis) that allowed it to receive an award by Nasscom in enabling
rapid integration of companies, cultures and creativity across continents.

The first mantra of integration is people. Services companies are passion
factories, and deal with emotions ranging from ego to let go and dwell on
the economic idea of need and greed of key stakeholders. When these two Es
are aligned right, one can harness the benefit of collaboration, or else the
merger lands up in conflict.

Therefore, the Aegis equation of integrating people business is C=E2, a kind
of hind sight Einstein equation. Today, Aegis is an institution of many ideas,
many dreams, led by many owners chasing many bigger dreams of building not only
a great company, but also of creating one of the worlds most profitable BPO
services with a global delivery model.

The three critical nuggets of an effective integration are approach, velocity
or time to integrate, and collaboration of stakeholders.

A relatively low score in any of these areas leads to failure in managing
mergers. Here goes a sneak preview of how Aegis tackles this.

The DNA

The DNA of Aegis integration strategy revolves around a hexagonal framework
encompassing six facets. Its like a diamond, where each face needs to be cut
right, in right proportion and right depth. The end result is a shining jewel
that makes the string of diamondsa precious Aegis.

At the very beginning of the acquisition, the company decides whether the
deal makes economic rationale for it. This is the key litmus test in its
integration journey.

Policies dwell on right practices. The company doesnt come in as grooms in a
marriage and ask the acquirer to behave like traditional brides and change
everything. If they have something good, the company replicates them all across.
Each acquisition gives new learning, tools and methodologies. Structure is the
most critical part of integration as this forms the basis of anxiety. Who stays,
who keeps the title and who moves on is decided and communicated well in
advance. It is better to be upfront and that honesty reciprocates in behavior
and allows to integrate effectively. Systems are non-negotiable business
governance practices and tools that form the basis of our operations. Therefore,
if Aegis uses SAP in accounting, then this is where every acquisition gets
bolted on. So, no compromise.

Values and cultures reflect in the behavior and shared languages in
corporations. These are built over time, over rituals, over recognition
ceremonies, ultimately to create the pride. Aegis have built a vision that
encapsulates an all inclusive mantra of happy people, happy customers and
happy shareholders. It is agnostic to color and creed and is easy to
understand for the rank and file across continents and cultures.

Last but not the least is the ability to integrate brands. It uses the mother
brand Aegis to put wrappers around it and create new entities that keep the
entrepreneurial spirit and yet embody the whole and soul of the parent
organization. Therefore, Aegis has created many sub brands and identities that
resonate the primary thinking in each of these acquisitions, and communicate
them with sincerity and passion. For example, when it acquired a training
company, it saw in the eyes of the foundersa dream to create history. It was
called the Aegis Aspire team that has now gone global and trains thousands of
people every month.

The Five 9s

Most integrations fail due to procrastination. Aegis ensures that there is
integration of companies in a little over three months. As a marketing ploy
there is the five 9s which means that action starts in nine hours from the D
day or deal day through an organization announcement. This is followed by
rolling out of KPIs in nine days, a nine week rigor to permeate the KPIs across
all managers and a ninety-nine day drill of the new way of working and managing
the Aegis way.

The journey of five 9s starts early on before closing the deal that
articulates the plan from as is state to a to be state. So far, it has
accomplished 80% of the to be state in most acquisitions in a little over
three months.

Orchestra of Performers

Most integrations are bow tie eventsboth literally and metaphoricallya
nice announcement, followed by bow tie cocktails and dinner, stakeholders
shaking hands and a serious translation error.

Aegis realized that this ritual is prone to errors. Therefore, it changed the
whole bow tie to recreate a star.

Here cross functional teams across both organizations create a common agenda,
thus executing the integration plan. This brings quick learning, a sense of
belonging and creates a collaborative culture.

As time moves on, it will continue to grow organically and through
integrations, each integration being a symphonywhere the conductors of both
companies create a harmony that is built on trust, fellowship, is economically
rewarding and is musically brilliant!