Unifying HR After M&A-Led Growth With a Global HCM Strategy

Client Background

Our client is a mid-sized European manufacturing company specializing in pharmaceutical solutions. The organization was strategically formed by a private equity (PE) firm through the merger and acquisition (M&A) of several existing companies across Europe. Today, the company operates with over 2,000 employees across four European countries

The Challenge

As a direct result of the M&A-led growth strategy, our client had disparate solutions and processes across multiple countries and legal entities. This fragmentation created significant hurdles for the vision of a unified, scalable enterprise, causing inconsistencies in processesand the employee experience.

To maximize the value of the investment, the leadership team and their PE partners wanted to:

• Transition from disparate applications to a centralized HCM solution.
• Streamline, simplify, and automate HR processes while maintaining country-specific compliance.
• Allow the HR team to shift focus toward strategic initiatives that drive innovation and business growth.

The client engaged HRchitect to navigate the complex market and find a solution that aligned with their long-term scalability goals.

Client Profile

• Mid-sized European pharmaceutical manufacturer.
• M&A-led growth strategy, backed by a private equity firm.
• Facilities across Europe for pharmaceutical manufacturing, along with research and development.

The Project

HRchitect worked with the client to define global requirements, manage the evaluation process, and provide guidance on the purchasing decision. To ensure all voices from the newly merged entities were heard, HRchitect consultants:

• Gathered input on 13 process areas from key subject matter experts.
• Engaged decision-makers across multiple countries and legal entities.
• Recommended a shortlist of global HCM solutions: Deel, SAP SuccessFactors, Workday, UKG, and Unit4.

The client accepted the recommendations to move forward into the RFP and evaluation process, which HRchitect facilitated. While one vendor declined to participate because the process did not include an evaluation of financial applications, the other four vendors moved forward. HRchitect produced a Vendor Fit Report, comparing written responses against scripted product demonstrations. A critical discovery was made during due diligence: the global payroll partners proposed by the finalists would not meet the client’s specific needs. Consequently, HRchitect pivoted to manage a separate evaluation of global payroll vendors, including CloudPay, Papaya Global, and Neeyamo.

Through this engagement, HRchitect uncovered the key challenge that our client’s entities differed greatly in their use of technology, with some using technology across HR processes and others relying entirely on manual processes and/or third-party experts. Bridging this gap in utilization and comfort would be the project team’s greatest challenge in ensuring their investment in new technology is widely adopted.

Key Benefits

• HRchitect helped our client define their future-state requirements across disparate business units, helping them understand what the new unified organization would need from an HCM solution.
• Our client identified their new global HCM solution, which will allow them to standardize HR operations once implemented.
• HRchitect advised our client through due diligence activities and contract and scoping discussions, helping them ensure the chosen vendor could be implemented securely and effectively.

The Results

Ultimately, our client decided to retain their existing in-country payroll partners and fill any necessary gaps with country-specific vendors to maintain stability while moving forward with a centralized global HCM solution. HRchitect supported initial contract review and implementation statement of work, providing expert guidance on scoping and negotiations.

While a leadership change during the contract phase has temporarily put the final execution on hold, the strategic foundation is set. The goal remains to initiate implementation with the selected HCM vendor, with the PE and executive team focused on overcoming adoption challenges to ensure a successful digital transformation.

“HRchitect was an amazing partner throughout our journey to implement an integrated HCM solution. Their expertise, thoughtful guidance, and deep industry knowledge helped push our organization forward at every stage of the process.”

• HR Executive