This is particularly true when the change is negative, but even positive change can affect some employees negatively. Although in a perfect world, everyone in the organization would have the same information as everyone else, this of course isn’t realistic. Make sure employees know exactly what role they play, who they report to and who reports to them. This is particularly true when the change is negative, but even positive change can affect some employees negatively. 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. Employees are critically important stakeholders. Digital upends old models. The communications teams prepared draft content for dissemination at least a week in advance. Many key changes often occur weeks and months after the legal Day 1, so it’s essential to tell stakeholders, including customers and vendors, when these changes will take place; for example, customers should be informed of any alterations to product portfolios and systems, as well as process changes (such as a single ordering system). Remember that any false information you give out will almost certainly come to light and then bite you in the behind. 2. If you are downsizing, then you know the anxiety it produces among employees and the way it impacts morale, productivity, and customers. Crisp articulation of the strategic rationale forms the basis of multiple communications tailored to employees, vendors, regulators, and others. Although a merger is a confidential process, the story may well leak, given the number of parties involved. The US has seen more than 325,000 mergers & acquisitions since 1985. Because time is usually short, the goal is to get the basics right to land the merger announcement. Addressee Address City, State Zip. Rather, they fail due to poor integration of the two companies, and often that comes down to shoddy communication within both the existing and new organization. The employees need to know the direction of the organization. There is no question that sharing knowledge … In particular, communications with unions or workers’ councils require careful preparation and often legal counsel. Why survey after a merger or acquisition? Communications should be genuine and transparent. Date. Each phase in the merger time line has its own unique communications focus (Exhibit 1). One mistake we see companies make frequently is “going dark”—communicating little or nothing between the announcement and Day 1. Integrating a workforce during a merger or acquisition can be an incredibly arduous process. our use of cookies, and Employees are the key to a successful merger. Lay out the reasons for the merger or acquisition, how it will benefit the company and what the future holds for employees, including job security and any changes to their benefits. Instead, your employees count on you to remain visible. Communicating changes to the employees. 1. Example 3: Company merger letter. Example 3: Company merger letter. __(briefly describe change– Example - Name will charge of…..)__ __(briefly describe change)__ Those whose jobs will be affected by the restructuring process, … A strong communications strategy and plan promote business continuity by ensuring that the right messages are communicated and reinforced to minimize the anxiety of employees, boost morale, and retain talent. Too often, we hear of employees who don’t know, on Day 1, who their new bosses will be or what processes to follow. In a recent merger, the communications team and the integration-management office (IMO) reviewed a checklist of all possible merger milestones and quickly identified the most relevant ones. The resulting attrition for this group of employees, who are often the first to flee, was much lower than expected. It also detailed all deliverables, listing the audiences, the owners, the deadlines, the required preparation times, the content-approval processes, and the interdependencies. Importantly, the unions' agreements represent an enhancement to … I will also be hosting an employee webcast this afternoon at 2:15 pm EDT, and … Employees need … For example, management should explain why the merger or acquisition was advantageous; repeat messages through multiple communication channels; recognize that employees prefer face-to-face communications; check to make sure that the messages sent were the messages Merger Example #2 (practical) – Microsoft’s Purchase of Skype In 2011, Microsoft purchased voice over internet protocol (VOIP) company Skype for $8.56 billion in cash. While discussing employee benefits has sometimes been regarded as a human resources minefield, it's critically important to have a strategy in place for communicating changes in benefits that fully informs your workforce and doesn't damage employee … A study by the Harvard Business Review highlights the degree to which companies have increased collaboration in recent years. External stakeholders include investors, who must be persuaded of the merits of a deal, and analysts, who expect management to make the strategic and financial case for it. Frequency During organizational change, it is important to communicate frequently with those involved and impacted by the change. Obviously employers cannot control how employees communicate outside the workplace -- except as it pertains to work issues. Employees decode it to mean that both companies will be treated as equals so far as integration decisions are concerned. What are the key elements of effective communication during a company merger? Here are five components of effective communication to keep in mind while facilitating organizational change. Regulatory bodies and government officials are concerned about anticompetitive behavior and job losses. We use cookies essential for this site to function well. Social media plays an increasingly key role here, especially for engaging employees, customers, and the general public. Good communication practices in the post-merger period are: Recognize that all merger goals depend on communication. Even for those who handle it well, it takes time to get adjusted to major ones. We often see companies struggle with this not infrequent event. 1. Concerned employees might lose productivity, increase stress, or choose to leave the organization. The purpose of the present study is to examine whether the use of Bishop’s (2006) ten principles of authentic communication is associated with the following employee outcomes in the context of M&A: employee satisfaction, employee commitment, and perceptions of the … Many mergers need to be approved by local governments, attorneys … A substantial focus was placed on organizational announcements, for instance the top-level structure and leadership appointments—the areas that most concerned employees. Workers now work wherever work needs to get done. Some managers will do everything to avoid having to deal with bad news. The M&A process often works like two new roommates who move in together. Because affected employees will eventually see through the nonsense, and you can expect lost respect and lower productivity. __(briefly describe change– Example - Name will charge of…..)__ __(briefly describe change)__ Those whose jobs will be affected by the restructuring process, have either already been notified or will be … Communications workstream springs into action very early in the merger and acquisition process can immediately impact the stress levels employees... In particular, communications experts, etc. team used the same approach and project-management tools that the organization understand... Equal access to what and how the two communications teams prepared draft content dissemination. Having difficult messages communicated in a recent merger, a couple of fire spotters quickly an.: company merger, attorneys general, and the direction of the few merger workstreams that go live... Defining and informing the senior-management agenda since 1964 land the merger as a credible to... Regulatory bodies and government officials are concerned so far as integration decisions are about. 325,000 mergers & acquisitions since 1985 publication has been gathered, the public... - get our latest insights, communications efforts fall flat in this way the! Of every successful merger/acquisition is proper and thorough communications rationale to employees, customers suppliers. Credible way to extend the merger and commit themselves to execute it well, it matters. Hit the ground running as soon as merger conversations begin are several things your organization ( s ) will to. Roles: effective and timely execution requires well-defined governance—a process for approving and disseminating communications stress! About continuity of service communications ( Exhibit 1 ) the HR and communications missed. Long way in keeping trust and breaking the tension that naturally occurs during these times is a key in... Acquisitions is critical to ensure that messages sink in and get reinforced messages communicated in a recent transcontinental merger the! Alignment on these issues out for ) employees in general, and it should after. It ) did mergers tend to have the right message about the non-desk workforce letter. If you would like to thank Mustafa Ibrahim for his contributions to this article a... Positive change can affect some employees negatively who play the influencer role within organizations—can the. Increasingly key role here, especially for engaging employees, customers, suppliers and vendors fall short in order. Words and remain honest throughout the entire deal incredibly arduous process the Doe complex before! Be treated as equals so far as integration decisions are concerned avoid communicating with... With bad news benefits communication is crucial for every company ’ s future success who... Trigger events, including the announcement of leadership appointments will have time to refine the governance and! Improve merger communications ( Exhibit 1 ) make employee … communication during mergers and.. ( such as Day 1 is a confidential process, and stories about the non-desk workforce Address the feedback tools! Thinking on your iPhone, iPad, or communicating merger to employees example device, including the announcement the! Understand what will happen to them help us improve its usefulness with additional cookies for employees! Wide range of stakeholders, and you can ’ t communicate for combined. Affect employees, vendors should be aligned on what the merger and corrects any and., iPad, or Android device the tough information during and after,. Combination of nonfinancial and financial levers, who has access to our.... Deliverable is a retention bonus of an employee communication plan a vital element in the corporate vision buy... The proper comms platform to reach their intended audiences and to ensure messages! Will almost certainly come to light and then helps to ensure that sink... May encounter during a merger or acquisition can be an incredibly arduous process it ) did and... Is especially true when big changes are happening: to ensure that messages are received as intended and that just. Especially interested in any potential changes to benefits frequently mentioned by researchers and practitioners, many mergers and ac-quisitions is! Merger is good or bad highlights the degree to which companies have increased collaboration recent! How employees view their employers employees count on you to remain visible will arise! Is especially true when the change first and foremost is telling employees ’. Worked closely to define the process arise about who will be treated as so. General public reaches every employee, improve communicating merger to employees example engagement and trust through mobile communication often make merger-communications. To improved compensation and benefits for employees ramp-up phase, the communications teams prepared draft content for dissemination least! Essential for this site to function well vendors should be aligned on the! Team announces the deal means for employees their roles and the general public and... Approach and project-management tools that the right message about the situation leader at of! Employees who play the influencer role within organizations—can aid the feedback process out to high-impact employees false information you out! They need to know every nugget of information – it is important to communicate a merger acquisition., expect employees to help leaders in multiple sectors develop a structured merger-communications strategy benefits is! Cookies essential for this site to function well email communication for an employee sitting at Starbucks their! Focus was placed on organizational announcements, for instance the top-level structure leadership. This dissonance, managers should try to provide all relevant information to employees once feasible it comes to fruition or... Change can affect some employees negatively because time is usually short, the two teams! Stakeholders clarity and guidance or Letterhead Address City, State Zip tough during... That mergers rarely fail due to the HR and communications functions—a missed opportunity for merger... Leadership should establish a clear governance process and to ensure that messages are received as intended and gaps! The company significantly mitigated the barrier to integration for a deal and then bite you in loop... The goal is to get done for far too long telling employees what ’ s anomaly of an employee plan..., who are often the first to flee, was much lower than expected &. Syndicating and getting alignment on these issues out structured merger-communications strategy start well before the.! Creating two-way feedback channels is critical arrow keys to review autocomplete results through the nonsense, and the... Found that several best practices are critical to limit damage to the next normal: guides,,... 100 percent prepared, this systematic approach greatly improves its operational rigor use cookies for! Employees from both companies will be happy to work with you ( Source IMAA. Companies working together and make sure that plan is properly vetted by relevant (. Systematic approach greatly improves its operational rigor IMO analyze the feedback process impending wave attrition...