In many technology acquisitions the investment thesis includes an acceleration plan—usually around product development, roadmap delivery or platform optimisation. With additional funding and resources, the expectation is that delivery speed increases and structure improves.
On paper, this makes sense. In practice, it often doesn’t.
The Problem
Businesses acquired in M&A are typically founder-led, operating in what I call a private bubble. They’re usually imperfect by “institutional” standards:
- Strategies undocumented or living in the founder’s head
- Roadmaps either informal or outdated
- Projects running over time, often without clear governance
- Pace driven by instinct rather than process
Post-acquisition, everything changes. Suddenly, there’s pressure to move faster, provide structured reporting, and deliver within tighter frameworks to satisfy investor timelines. A fresh set of eyes is not just helpful—it’s usually critical.
But here’s the mistake often made: deploying capital alone does not solve these challenges.
Money accelerates opportunity. Motivation accelerates action.
It’s Not Just About the Budget
Throughout my career, I’ve seen how motivation—when driven through non-financial levers—produces far greater output than money alone. Two references from my early career highlight this.
1. Ford Motor Company: Learning Outside the Job
Early in my career at Ford, I took part in a programme called EDAP (Employee Development Assistance Programme). Every employee received a small annual budget to learn something completely unrelated to work. You were not allowed to spend it on anything job-related.
I learned horse riding and jet skiing. Professionally pointless. Personally transformative.
In a corporation of around 500,000 employees, motivation and loyalty were exceptionally high. The productivity uplift from this small incentive was disproportionate to its cost.
A Harvard Business Review report found that employees who engage in “outside-of-role learning” show a productivity improvement of up to 21% and 34% higher retention likelihood.
(HBR, 2023)
The lesson: autonomy and personal development trump traditional reward models—especially in technical environments.
2. Google’s Early Motivation Framework
In How Google Works, Schmidt and Rosenberg discuss cultural approaches used in their early days. Contrary to expectation, many of their high-impact motivational techniques were low-cost or even zero-cost.
The misconception that motivation requires budget is widespread. Yet most of our clients today have more resources than early Google—and use fewer motivational levers.
McKinsey reports that non-financial motivators (e.g. praise, connection, inclusion) are “more effective than financial incentives in driving discretionary effort,” especially in technical teams. (McKinsey Quarterly, 2022)
Real-World M&A Examples
1. Hackathons: Rediscovering the Hobby
Many people got into tech because it was their passion. By mid-career, they’re often stuck in reporting, operational governance and BAU tasks.
During a fintech acquisition integration, we introduced structured hackathon days. The energy shift was instant. They were building again, not just administrating.
We saw measurable outcomes:
- 6 weeks’ worth of roadmap design delivered in 3 days
- 2 innovation features scoped and pitched to leadership
- Engagement levels increased significantly (based on pulse surveys)
Their eyes were different. That matters.
2. The “Expensive” Trip That Wasn’t
On an integration programme, we had a consultancy team and client team struggling to collaborate. We took what looked like a costly decision—an off-site trip abroad, early in delivery.
Within days, a team of 70 people became aligned, open and genuinely collaborative. Delivery performance improved so sharply post-trip that the ROI was realised over the next nine months, espeically when the going got tough.
Bonding is a business decision, not a perk.
3. Acquisition in a Remote World
One of today’s most overlooked reality checks: acquisitions often occur when everyone is working remotely.
I’ve seen simple steps—virtual coffee sessions, informal team briefings, early visibility sessions—create psychological safety. Not “launch day” style town halls, but genuine human conversations.
When people feel part of the journey early, they lean in. When they don’t, they retract the moment governance increases.
In short: meet people in person, in week one.
Final Thought
Investment brings capability. Motivation brings momentum.
The difference between value creation and value erosion is often determined in the early post-acquisition window—not by capital, but by connection.
In Technology Due Diligence, we analyse scalability, architecture, delivery capabilities and leadership approach. But the real acceleration happens when the people behind the tech reconnect with why they do what they do.
This is why we often coach pre- and post-deal (even in DD) to help the incoming management to expect a step change. Expect a faster pace, more governance and reporting and the need to “pitch for existence” – sounds harsh, but buyers expect management to argue for clear direction, not to be told what to do.
Money funds transformation.
Motivation delivers it.
Sources
- Harvard Business Review – Encouraging Outside Learning, 2023
- McKinsey Quarterly – Beyond Incentives: What Motivates Technical Teams, 2022
- How Google Works – Schmidt & Rosenberg
Links:
Harvard Business School – “Why Professional Development is Important” article on benefits of professional (and personal) development programmes. https://professional.dce.harvard.edu/blog/why-is-professional-development-important/
McKinsey & Company – “Motivating people: Getting beyond money” discussing nonfinancial motivators vs. cash bonuses. https://www.mckinsey.com/capabilities/people-and-organizational-performance/our-insights/motivating-people-getting-beyond-money
McKinsey insight on incentives in transformation-driven companies — “The powerful role financial incentives can play in a transformation.” https://www.mckinsey.com/capabilities/transformation/our-insights/the-powerful-role-financial-incentives-can-play-in-a-transformation
Harvard Business Review — “Our Work-from-Anywhere Future,” about remote work and how the world of work has changed (useful to support your remote-acquisition comment).
https://hbr.org/2020/11/our-work-from-anywhere-future
Gallup – “How to Improve Employee Engagement in the Workplace,” summarising research on how engagement drives productivity, retention, and business outcomes. https://www.gallup.com/workplace/285674/improve-employee-engagement-workplace.aspx
