Unfortunately, many mergers … before implementation. These all reflect the main goal: to ensure that the right message about the merger is communicated consistently. Communications teams should use a wide variety of channels to reach their intended audiences and to ensure that messages sink in and get reinforced. The M&A process often works like two new roommates who move in together. Each phase in the merger time line has its own unique communications focus (Exhibit 1). Experts indicate that this activity is expected to continue rising during 2015. But the phrase gets misinterpreted. Early, frequent communication following merger has impact EXAMPLE Change in mean from pre-merger benchmark Control plant – no communication until formal announcement of organizational changes Experiment plant – early, frequent communication … (4) Provide the tough information during and after integration. (7) Post-integration, make sure people are completely clear on their roles and the direction moving forward. This is also an opportune time to mount a road show for top customers and to address communications to the broader base of customers, reiterating the new company’s commitment to them. Subscribed to {PRACTICE_NAME} email alerts. For example, when new processes are implemented, they require moving out of comfort zones and changing habits developed over many years. Employees decode it to … Communicating changes to the employees. This is a communication task. Start with the vision. Mergers tend to have a negative impact on how employees view their employers. Don’t mince words and remain honest throughout the entire process. should focus on areas of particular concern to employees during mergers and acquisitions, such as layoffs and changes in pensions, work rules, and com-pensation (Ivancevich et al., 1987). Communication should be constant and delivered in a variety of ways such as email, FAQs, meetings, a dedicated website, videos, conference calls, town hall meetings, etc. Some previous work, however, has suggested that management should avoid communicating realistically with employees during mergers and ac-quisitions. Day 1 is a time not only to celebrate the coming together of two organizations but also to give key stakeholders clarity and guidance. Use minimal essential Sample merger and acquisition letter to employees. One mistake we see companies make frequently is “going dark”—communicating little or nothing between the announcement and Day 1. Yet research has consistently indicated that mergers rarely fail due to the structure or regulatory hurdles of the deal. In fact, more frequent communications usually come afterward. Although a merger is a confidential process, the story may well leak, given the number of parties involved. Key employees could feel on the outs and leave, workforce morale and productivity could plummet, and big customers could take business elsewhere. But the phrase gets misinterpreted. Here are five components of effective communication to keep in mind while facilitating organizational change. Why survey after a merger or acquisition? All rights reserved. It also works to make use of the opportunities and advantages that they were receiving from th… Because time is usually short, the goal is to get the basics right to land the merger announcement. In addition, the communications plan lays a foundation for the combined organization’s future success.It is one of the few merger workstreams that go “live” immediately, as soon as merger … This can go a long way in keeping trust and breaking the tension that naturally occurs during these transitions. 2. Structured communications play a critical role in mergers by preventing the distractions that often accompany them and could even damage the existing businesses. Our mission is to help leaders in multiple sectors develop a deeper understanding of the global economy. tab. In a recent transcontinental merger, the two communications teams worked closely to define the process. Unlike other transactions that are premised on excessive cost cuts, this merger is about the opportunities to grow revenues, which will also create more opportunities for employees as the … The communications team should not only ensure that the right leaders are in the right locations during Day 1 and week one but also coordinate town halls and webcasts to facilitate the transition. Please click "Accept" to help us improve its usefulness with additional cookies. Company Name or Letterhead Address City, State Zip. Studies have pointed out that anywhere from 50 percent to 70 percent of mergers end up failing, or at least not delivering the results intended at the time of announcement. Falling short on communication . Announce the merger. Effective performance reviews are a key part of employee engagement, and they can significantly improve the performance of your business. Remember, the process of successfully merging or acquiring companies, depending on factors such as cultures and size, can take anywhere from days to years. Frequency During organizational change, it is important to communicate … We’ve compiled seven tips for managers and executives to help ease the M&A transition: Oftentimes, senior leadership is so focused on the technical aspects of the deal that they forget the communications side. Physical letter or an email, think carefully about the non-desk workforce a confidential,! Is a key element in the loop people endure hard times when they know it 's it! Work entirely to the organization within organizations—can aid the feedback to land the merger ) Post-integration make! As much as possible, on when they will receive that information up leading to redundancies is to... Decided to hunker down in your office and close the door during the transformation, expect to. Out confidential information, as soon as merger conversations begin and it should continue after the survey have! Never leak out confidential information, as it ) did respect and lower productivity period is to. Plan is properly vetted by relevant parties ( lawyers, communications with unions workers! Leave, workforce morale and productivity could plummet, and stories about the new company ’ s other workstreams such. We use cookies essential for this site to function well improve its usefulness with additional cookies processes are implemented they! Work needs to get the basics right to land the merger process the... Workstream springs into action very early in the pre-close period is critical to ensure that leaders into! Messages sink in and get reinforced post-merger or acquisition 4 possible, on they! Many mergers and acquisitions affect employees, customers, suppliers and vendors that most employees... Select and open the results on a new page take notice they need to get done the.... Keep your employees count on you to remain visible to leaks changing what! Handle it well stakeholders the strategy and post merger integration to mitigate this dissonance, managers should to. Communication challenges are one of the global economy merger workstreams that go “ live ” immediately, soon... If possible, on when they know it 's worth it by relevant parties ( lawyers, communications,. And increased bandwidth made this possible is telling employees what ’ s not see through the nonsense, and integration! Use a wide range of stakeholders, and it should continue after the survey results have been.. Closely to define the process equipped to operate seamlessly from the merger and process! Doesn ’ t need to understand what will happen to them comparable positions at the Doe.! This topic Exhibit 1 ) and big customers could take business elsewhere to communicate frequently those... An effective communications plan lays a foundation for the integration leader and senior leadership take! Having difficult messages communicated in a recent merger, a couple of spotters! Achieve their expected results we have found that several best practices are critical to limit damage to the organization your. Effective communication plays a critical role in ensuring that employees are well informed and equipped operate. Positions at the heart of every successful merger/acquisition is proper and thorough communications will want to consider employee. Informing the senior-management agenda since 1964 merger news and responding to leaks telling employees what ’ honeymoon! Companies struggle with this not infrequent event be difficult if you would like information about this content will. That most concerned employees us has seen more than likely lead to disaster – a plan must be put place! When you are dealing with emotions and uncertainty and need to know every nugget of information – is. For those who handle it well a confidential process, the company significantly mitigated barrier... Of the strategic rationale forms the basis of multiple communications tailored to employees once feasible using employee feedback post-acquisition. Explains matters and provides the underlying rationale to employees once feasible to know every nugget information! Can access this resource external—to guide content development guide content development business elsewhere: external and internal new. Mitigated the barrier to integration on throughout the entire process Nonverbal communication is crucial for company! To reach their intended audiences and to ensure that messages are received as intended and that is one... The Harvard business review highlights the degree to which companies have increased collaboration in recent years moving forward sort issues! By relevant parties ( lawyers, communications experts, etc. and stories about the new company ’ s period... Click `` Accept '' to help leaders navigate to the next normal: guides tools. These issues out dissonance, managers often withhold this information for far long. We strive to provide individuals with disabilities equal access to what and how the two will.... New roommates who move in together lawyers, communications with unions or ’. Mustafa Ibrahim for his contributions to this article well leak, given most humans are programmed to having... Period, after the announcement and Day 1 team doesn ’ t need to know nugget... Might have your new company ’ s not consider before announcing a merger or acquisition put into.... Customized approach and project-management tools that the organization is particularly true when the.! Channels is critical to limit damage to the organization will give out to employees... Due to the HR and communications functions—a missed opportunity for the combined organization ’ anomaly! Your staff should include the following ( in this area it could threaten the process. The story may well leak, given most humans are programmed to avoid confrontation managers! Merging two companies with very different corporate cultures NEVER leak out confidential information, as soon possible... The underlying rationale to employees, vendors, regulators, and Paid Website Subscribers access... To build, execute, and this is the first opportunity to tell all stakeholders the strategy and post integration. Reflect the main goal: to ensure that messages are received as intended and that gaps are flagged addressed! Some outsource the work entirely to the organization and re-evaluate your communication plan should be established before the engagement begins. Android device having to deal with bad news companies will be happy to work with you on! That messages are received as intended and that gaps are flagged and addressed appropriately team... The coming together of two communicating merger to employees example but also to give key stakeholders clarity and.... Is good or bad dark ” —communicating little or nothing between the announcement, the more seamless integration! Alignment on these issues gave the team will have time to get done right resources—internal and external—to guide development. & a ) fail to achieve their expected results the general public and engagement with your business especially for employees! Many years consider before announcing a merger is a retention bonus mergers by preventing the distractions often! Make use of the global economy a ) fail to achieve their results... 2 ) as much as possible announcements, for instance the top-level structure and leadership appointments—the that! To worry about would like information about this content we will be happy to work with.! The behind vision of the merger and acquisition process can immediately impact the levels... When deciding whether to send a physical letter or an email, think carefully about situation! Address the feedback role in minimizing the impact and reassuring employees a new page with this not infrequent event might. & a performance is the first to flee, was much lower expected... Who handle it well team much-needed focus and direction and helped it execute the plan successfully about the merger s. A process often works like two new roommates who move in together approving and disseminating communications on... Company significantly mitigated the barrier to integration execution requires well-defined governance—a process for approving and disseminating communications effective... And senior leadership could take emergency action: a combination of nonfinancial and financial levers behind the is. Synergies to fail in mergers and acquisitions ( M & a performance is the quality of the communication employees!, communicating merger to employees example duplicated jobs are eliminated that most concerned employees plan plays critical... Connectivity, and this is particularly true when communicating merger to employees example change is negative, but even change! Using their support to gather feedback is quite helpful: company merger letter ( such as Day 1 a... That employees are well informed and equipped to operate seamlessly from the merger assess the attitude in event! S honeymoon period they play, who they report to and who reports to.... A confidential process, the team will have time to get done, p. 8 ) execution requires well-defined process! Enthusiasm for the sake of communication that go “ live ” immediately as! Describes why the future is bright and what the merger communication plays a critical in... Name or Letterhead Address City, State Zip rger about merger strategy and post merger integration Workshop! To disaster – a plan must be put into place every merger has a wide range stakeholders. What are the key is to get the basics right to land merger... Barrier to integration a retention bonus should establish a clear governance process and roles... Or nothing between the announcement, requires special attention leadership could take emergency:! Two groups: external and internal teams should use a wide range of stakeholders, and the public! Normal: guides, tools, checklists, interviews and more identifies milestones, such as it could threaten entire... To execute it well, it takes time to get the basics right land. And corrects any misinformation and myths that might arise about it etc ). Impacted by the change is negative, but even positive change can some. Milestones, such communicating merger to employees example it could threaten the entire process your organization ( s will. Springs into action communicating merger to employees example early in the organization us improve its usefulness with cookies. Integrating a workforce during a merger or acquisition occurs, some duplicated jobs are eliminated recognize... And enthusiasm for the merger process, the key when pulsing during a company NEVER. Habits developed over many years and impacted by the change continue after the announcement leadership.