Mergers acquisitions guide NDIS providers
Mergers and acquisitions among National Disability Insurance Scheme (NDIS) providers can bring enormous benefits, for providers themselves and their clients. Merging with another provider can bring economies of scale, reduced overheads and can also allow for a diversification of the services being offered.
Yet these positive drivers go hand in hand with challenges. Do the merging organisations really fit together, with shared objectives and common interests? Do the two providers share an understanding of who their community is and what type of clients they serve? Are their organisational cultures and operational processes a good match?
In our work with NDIS providers, we’ve also seen that a maze of technology challenges can interfere with progress and even put the aims of the merger at risk. Challenges can range from legacy systems to integration complexities and service overlaps. Combined technology and organisational differences create obstacles that require careful navigation and strategic foresight.
Legacy NDIS technology: an Achilles’ heel
One of the most challenging aspects of NDIS provider mergers is the legacy technology. Outdated systems are often fragmented and incompatible and even if a provider has undertaken some digital modernisation the two merging providers may be at different stages of their digital modernisation journey, with or without a digital transformation roadmap.
Differences like this have an impact on how smoothly the organisations can integrate. From how client data is managed and shared, to billing systems and service booking platforms, the technology that supports how an NDIS provider delivers their services is at the foundation of the client experience.
The cost and complexity of upgrading or replacing legacy systems can create significant hurdles and can even delay a merger, or worse.
NDIS system integration woes and service overlaps
Another obstacle facing merging NDIS providers is how to integrate NDIS software and systems – and streamline services after the merger. It’s extremely likely that data structures and workflows will not be aligned. There may also be duplication of systems and services, which can lead to confusion among staff, and can compromise the client experience. When NDIS providers decide to merge, they’re generally aiming for the exact opposite.
If there are issues with systems integration, service duplication or misalignment of processes, it can seriously compromise the objectives both organisations had for the merger.
The importance of communication
There is an answer, or at least a starting point. At 9Yards, we’ve seen time and again, that effective, early communication is essential to overcome technology challenges during mergers.
Jodie Rugless, Principal Consultant at 9Yards has been involved with a number of mergers. “We see again and again that when there is transparent dialogue between stakeholders, including staff, clients, regulators, and technology partners, as early in the merger planning stages as possible, the merging organisations are better able to foster alignment, manage expectations, and reduce the resistance to change. When there are effective feedback mechanisms and regular updates from the leadership, individuals at all levels feel empowered to contribute to the integration process. This creates a sense of ownership and collaboration and ultimately, a better outcome.”
Charting the course: recommendations for success
There’s no one-size-fits-all way to proceed with a merger. And while each merger is unique, it’s critical that senior leadership from both providers must spearhead the initiative, setting a clear vision and strategic roadmap for integration.
Involving IT and digital transformation specialists early in the due diligence phase enables comprehensive assessment of technology assets, systems, risks, and opportunities.
Collaboration between operational teams is also vital. For example, process mapping will help identify where the organisations are already aligned and understand where there are overlaps and gaps.
Often overlooked but hugely impactful is to involve end-users in system design and testing of any planned changes. This makes sure that solutions have the client’s needs at their core, while maintaining compatibility with operational realities.
A merger or acquisition in any sector represents change. For NDIS providers, the change can be particularly disruptive if it isn’t handled well. Investing in change management initiatives such as training programs and communication campaigns will prepare staff and clients for transition.
When to involve stakeholders
Our advice is to start involving key stakeholders from the beginning of merger discussions. Input from stakeholders will shape strategic decisions and inform integration plans, ensuring the merger itself goes smoothly with fewer last-minute surprises.
- IT specialists should conduct thorough assessments of existing infrastructure and compatibility, laying the groundwork for seamless integration.
- Operational teams should collaborate to identify overlaps and streamline processes
- Change management experts should develop communication strategies to keep all stakeholders informed and engaged throughout the process.
Technology challenges can represent a huge challenge when NDIS providers decide to merge. However, proactive planning, effective communication, and strategic collaboration can pave the way for success, ensuring the merger meets its goals of improved outcomes for the providers and their clients.
Contact our digital transformation consultants at 9Yards for a chat to discuss your merger plans and how to effectively achieve the best outcomes for both your NDIS sytems and your clients.
