You can follow Kate’s thoughts via her personal blog. Darden A Case charges $6.25 . 2. It's now been three months since we completed the merger to form (company name). Communication during these times is a powerful tool that can help keep your employees engaged during difficult times. Keywords: mergers and acquisitions, communication process, communication strategy, Suggested Citation: Communication during mergers and acquisitions is critical. You often don’t have a lot of time to prepare. Here are five best practices for managing layoffs that occur due to a merger. A merger is a radical change which is already affecting everyone in both organisations, even if for many of them nothing is actually changing in terms of jobs or terms of employment. Keep employees informed. The 1990s could be described as the “decade of consolidation,” when some of the world's largest corporations merged. Are there unexpected changes in the sector or the economy as a … However, communication skills are one of the hardest ones to learn. Keeping employees motivated through this period of change is one of the most important considerations. Clarity about the motives and inte the role of senior managers in a merger situation, How to communicate mergers and acquisitions. Required fields are marked *. Corporate reorganizations, mergers and acquisitions affect employees, customers, suppliers and vendors. The 1990s could be described as the decade of the consolidation as some of the world’s largest corporations merged. The mere mention of the term “merger” or “acquisition” (M&A) often sent ripples of misinformation or half-truths throughout a company and had enormous negative implications for the merger integration process. Your employees are human beings too and you need to treat them that way too. Post-Merger Integration Plan. Merger changes things more fundamentally than most of us have ever experienced before at work. “Lack of transparency – delaying tough answers doesn’t help you. However, … Your employees are important to you. Would you like me to write more about this topic? The multiple demands of planning our future strategy, running the business on a day-to-day basis, and dealing with the demands of the merger have interfered with more frequent communications. Communication is the key to organisational success and nowhere is this truism more apparent than in the influence of internal communication during a transformational process as dramatic as a merger or acquisition. This was enhanced by using a group of independent . In a startup, the people on the ground have helped build a successful brand from nothing. Initial reading is to get a rough idea of what information is provided for the analyses. This note reveals the findings and makes communication recommendations. So when is the right time to tell employees about a pending merger? A leader at one of the organizations was exceptionally good at communicating how individual employees would benefit from the merger. How you’ll coordinate communication between your existing employees and the business being acquired How updates and changes will be revealed to the company A timeline helps employees to feel like they’re still “in the loop” during the complex process of a merger. How to communicate a merger. Before long, however, as systems and processes are overhauled, those employees realize they have been fed a “party line.”. How to communicate with employees through a merger. If you … Here's what a good communications strategy that drives business results and motivates employees looks like. Ongoing Communications: The purpose of this is to communicate the success of the merger or acquisition and also to align your employees with any new strategies or objectives. The mere mention of the term "merger and acquisition" (M&A) can send messages of misinformation or half-truths. Breaking the News: How to Communicate a Merger to Employees Case Solution, The mere mention of the term "mergers and acquisitions" (M & A) can receive messages from misinformation or half-truths. One of 2018’s biggest business news stories was the proposed merger of SSE Energy Services with npower, to create a new, independent energy supplier with around 11 million customers for listing on the London Stock Exchange by Q1 2019 here in the UK. In the worst-case scenario, employees hear the news from neighbors, friends, or clients or read about it in the newspapers. But when is the right time to tell employees about a pending merger? This is a serious case of change comms. Breaking the News: How to Communicate a Merger to Employees Case Solution,Breaking the News: How to Communicate a Merger to Employees Case Analysis, Breaking the News: How to Communicate a Merger to Employees Case Study Solution, The mere mention of the term "M & A» (M & A) can send messages to misinformation or half-truths. Power struggles prevail. “Be absolutely honest all the way. The 1990s could be described as the “decade of consolidation,” when some of the world's largest corporations merged. place in the post merger phase. how to communicate a merger to employees The 1990s could be described as the “decade of consolidation,” when some of the world's largest corporations merged. Is the company stock underperforming? “Saying right from the start, “Nothing’s going to change.” I.e. To: All Employees From: Senior VP . We collect, use and protect your data in line with our privacy policy. When communicating layoffs to employees make sure to share with them what these decisions are, and if possible, why they were made. Your employees are important to you. The merger and acquisition process can immediately impact the stress levels of employees involved. Share on twitter. you can find several Negative effects that individuals might experience. First published on the All Things IC blog 30 April 2018. How can organisations communicate change? In no particular order (they’re all important!)…. They will be the worried ones” – Paul Cawley, Communications & Engagement Officer, @paul_cawley. 2. Case studies – Using employee feedback surveys post-acquisition Before long, however, as systems and processes are overhauled, those employees realize they have been fed a “party line.” Leaders lose credibility and productivity slows. Rather than leaving everyone to wonder how the reorganization will affect their relationship with the company, it’s wise to develop communication strategies that address employee concerns as well as questions from customers, suppliers and vendors. During a major change such as a merger, employees are in need of information that will bring clarity to their specific situation. Clarity about the motives and intentions, as well as the d It is important to spend time reviewing all of these considerations before announcing because of the importance of your transaction being successful in the long term.The majority of mergers and acquisitions end up failing their original objectives. During a merger, it’s important to share with employees up-to-date information about business decisions that are being made, even if all the details haven’t been nailed down. One of 2018’s biggest business news stories was the proposed merger of SSE Energy Services with npower, to create a new, independent energy supplier with around 11 million customers for listing on the London Stock Exchange by Q1 2019 here in the UK. Size: 241K. Share on linkedin. You also need a log-in to Sainsbury’s site. Merger & Acquisitions (M&As) are a valuable growth strategy for businesses looking to expand and acquire new capabilities. Thank you to everyone who contributed to this article. A common pitfall is for the acquirer to communicate to employees early in the deal that they intend a “merger of equals” so as not to upset employees in the acquired organization. 3. Thank you to the professional communicators who have shared their thoughts as part of my blog’s #ICVoices series. Ensure line managers have an FAQ on hand for follow-up questions. Do get in touch below. So, it … Initially, fast reading without taking notes and underlines should be done. Communication in the workplace is crucial for the overall business success. Suggested Citation, P.O. A recent survey of managers conducted by the Darden Graduate School of Business explored communication practices that companies use to communicate internally during their firms' merger or acquisition. And that is just one issue to worry about! Management must be clear about motives and intent as well as attentive to the timing of the release of information during a merger, but a company requires strategic management of communications both internally and externally. This page was processed by aws-apollo4 in 0.127 seconds, Using these links will ensure access to this page indefinitely. How to Communicate with Employees During Mergers and Acquisitions. Budget-cuts? Kickstart the comms as soon as you can. NEW online masterclasses - learn about internal communication with Rachel. When leaders feel they have said enough, employees still want more. Box 6550Charlottesville, VA 22906-6550United States, Box 6550100 Darden BoulevardCharlottesville, VA 22906-6550United States434-243-7693 (Phone)434-243-7676 (Fax), HOME PAGE: http://www.darden.virginia.edu/faculty/west.htm, Subscribe to this fee journal for more curated articles on this topic, Subscribe to this free journal for more curated articles on this topic, Economics Educator: Courses, Cases & Teaching eJournal. 08383648Permission needed to reproduce content. Colleagues will have uncertainty. The basic problem is that companies often can’t announce these changes early in the merger-planning effort. Employees in one plant received the … “We noticed the overriding desire of our managers to show a stiff upper lip or to go around saying “I love change”, which is often untrue. Reassure them” – Paul Cawley, Communications & Engagement Officer, @paul_cawley. Joined-up thinking Clarity about motives and intent, as well as timing the release of information during a merger, requires strategic information management. Effective communication during the post-merger phase is required to: ensure a common understanding of the business case for the merger and the vision for the future; help people understand and internalize change; keep the organization focused on customers and productivity; reinforce desired behaviors; promote cultural alignment; The communications workstream springs into action very early in the merger process, and the pace rarely lets up much. At Bank PHB rich communication to all employees of the new direction of the bank took . Communicating a Merger : The Emirates NBD Story 1. Because affected employees will eventually see through the nonsense, and you can expect lost respect and lower productivity. An effective communications plan identifies milestones, such as Day 1, and trigger events, including the announcement of … At a large corporation, efficiency and operations depend on the support of thousands of individuals. The disclosure to the outside world that a company is for sale — in other words, a candidate for a merger or an acquisition — can be a devastating bit of news. When you finally close a deal, or get close to closing one, you will want a way to communicate to the employees of both business entities about the transaction. Communication during mergers and acquisitions is critical. What and When to Tell Employees about a Merger or Acquisition. The letter should come from the new top manager of the merged organization or be written as a jointly-issued communication from the CEOs of the merging companies. The audience for a company merger or acquisition announcement video is primarily employees but also stock holders, customers, vendors and the overall market. Congratulations on the merger, Rachel. Remember that your employees will want to know more than the details of the merger. UVA-BC-0180, Available at SSRN: If you need immediate assistance, call 877-SSRNHelp (877 777 6435) in the United States, or +1 212 448 2500 outside of the United States, 8:30AM to 6:00PM U.S. Eastern, Monday - Friday. In six years AccentCare has doubled in size. 1. Notify me of follow-up comments by email. Kate Davies, CEO of Notting Hill Genesis has been writing on her personal blog about the experience over the past few weeks. From what I can see, they’re taking a joined-up approach to internal communication, which is smart, particularly having the message from the three CEOs, plus one from Roger. The buyer was a public company and feared premature disclosure. Further reading on the All Things IC blog: If you are responsible for M&A comms, you need to get organised. We hate SPAM and promise to keep your email safe. Make the merger announcement on new company letterhead or on stationary or an email template that contains both existing company logos. Roadblocks you may encounter during a merger or acquisition 2. Corporate reorganizations, mergers and acquisitions affect employees, customers, suppliers and vendors. Thanks for the shout out Rachel! By Bill Snow . Communicate honestly. Major HBR cases concerns on a whole industry, a whole organization or some part of organization; profitable or non-profitable organizations. How to communicate a merger. Some decisions will be timed so market hears first but, initiate comms to your employees at the same time. By ticking this box you are agreeing to our privacy policy. I Tweeted this morning to ask my network for advice about M&A comms. 2. At a large corporation, efficiency and operations depend on the support of thousands of individuals. “I don’t know, yet” is an okay answer once you close the loop down the road. Fearful employees might try to undermine the deal by giving the buyer a negative impression. We use cookies to help provide and enhance our service and tailor content.By continuing, you agree to the use of cookies. As ever, you’re welcome to comment below or Tweet me @AllthingsIC to share your view. The objectives of this email are to update you on how the integration of the two businesses is progressing, to explain what integration challenges lie ahead, and to highlight how you can continue to help the company deliver on its potential. Here are 4 Ways to Prepare Your Employees for a Merger or Acquisition: 1. If you wish to purchase the right to make copies of this paper for distribution to others, please select the quantity. An effective, proactive communication plan is therefore critical to ensure that employees understand the process and the timeline until the company can reveal the decisions it has made. After a merger, HR leaders are often tasked with developing an internal communication strategy. In the past six years, AccentCare has doubled in size organically, and through a lot of acquisitions, going from about 12,000 employees to 25,000 employees. ), the offer remains open. Some companies extend equity to founding employees, so the future of the company matters even more … You can also book a free 15-minute call this way. Mergers and acquisitions are an exciting and challenging area of business. Make the announcement to all of your employees at once, before you inform the media, vendors, suppliers or other parties. “Not thinking of the risks and researching and planning for them” – Laura Sutherland, Founder and Director @laurafromaura. A small message is better than no message. 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. To combat rumors and twisted facts, create a solid communications plan for your employees, leadership and other key stakeholders, such as customers and board members. Work collaboratively with the legal and HR teams, as everything has to be aligned” – Laura Sutherland, Founder and Director @laurafromaura. During a major change such as a merger, employees are in need of information that will bring clarity to their specific situation. Analyze current roles and responsibilities, and create a tentative plan. While most headlines focused on the … Please do keep blogging your thoughts, I’ve enjoyed reading your articles. 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