“Respect both companies’ brands and history. During a merger, you may expect employees to be distracted. While at the time most headlines focused on the economic effect of the mergers, some observers noted the internal impact on the companies involved. Listen to why Lindsay’s first duty is to understand the new audience, and what a good communications blend that drives business results and motivates employees looks like. I’ve included their thoughts below on their top tips, plus worst mistakes you could make in this situation. Mergers and acquisitions often create winners and losers at both the corporate and individual staff levels. Communicate, Communicate, Communicate. All Things IC Hub address:Saunders House, 52-53 The Mall, Ealing, W5 3TA. Do you have a query for me? However, communication skills are one of the hardest ones to learn. Your email address will not be published. The basic problem is that companies often can’t announce these changes early in the merger-planning effort. Merger changes things more fundamentally than most of us have ever experienced before at work. Initially, fast reading without taking notes and underlines should be done. A 2015 report from Harvard Business Review found that between 70 per cent and 90 […] The 1990s could be described as the “decade of consolidation,” when some of the world's largest corporations merged. Case studies – Using employee feedback surveys post-acquisition Create a timeline with milestones that can be updated and referred back to. even so, social loafing also has an effect on the people today that comprise the team. Clarity about the motives and intentions, as well as the d First published on the All Things IC blog 30 April 2018. Communicating merger to employees open and honestly is the most important thing that you can do. Before long, however, as systems and processes are overhauled, those employees realize they have been fed a “party line.”. The mere mention of the term “merger” or “acquisition” (M&A) … Layoffs are usually part of larger business decisions, such as mergers, acquisitions, or strategy changes. Make the merger announcement on new company letterhead or on stationary or an email template that contains both existing company logos. Specifically, IC should communicate with employees about the necessity for the change, explain how the change will benefit them, and manage the stresses that accompany change. Kickstart the comms as soon as you can. Employees, after all, have a role in implementing the changes that may be required to realize the merger vision. Since most mergers and acquisitions fail, this ongoing communication to keep your new band of employees aligned and working towards one goal will greatly improve your chances of success. Emirates NBD Communicating a Merger : The Emirates NBD Story Sanjay Uppal Group Chief Financial Officer Emirates NBD GCC Corporate Finance Conference Capital Markets in Turbulent Times 16 – 17 April 2008 Park Hyatt, Dubai 2. 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. Much better for the leadership to encourage the anxieties of the managers to emerge.”. Keeping employees motivated through this period of change is one of the most important considerations. “Be absolutely honest all the way. “The focus on industry/market/investor communications and a lack of engagement and focus regarding employee comms. Reiterate the honest, straightforward WHY in everything” – Cheryl Martin, independent marketing communications advisor, @cmmbiz. You need a log-in to access it. Announce the merger. As ever, you’re welcome to comment below or Tweet me @AllthingsIC to share your view. Do get in touch below. A small message is better than no message. NEW online masterclasses - learn about internal communication with Rachel. “Completing forgetting any emotional ties employees have to their former or new brand. 2. Merger & Acquisitions (M&As) are a valuable growth strategy for businesses looking to expand and acquire new capabilities. 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. 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. Gallup discovered a gap between how employees and leaders view communication. “I don’t know, yet” is an okay answer once you close the loop down the road. By listening to employees, communicating effectively, and doubling down on its unique culture and programs, LinkedIn was able to thrive, even during its acquisition. We use cookies to help provide and enhance our service and tailor content.By continuing, you agree to the use of cookies. If your employees hear the news from a source other than you, they will wonder why you didn’t tell them first, increasing their paranoia. Work collaboratively with the legal and HR teams, as everything has to be aligned” – Laura Sutherland, Founder and Director @laurafromaura. Clarity about motives and intent, as well as timing the release of information during a merger, requires strategic information management. Or visit my shop to see everything I offer. Suggested Citation, P.O. Budget-cuts? 3. STEP 2: Reading The Breaking the News How to Communicate a Merger to Employees Harvard Case Study: To have a complete understanding of the case, one should focus on case reading. 2. Kate Davies, CEO of Notting Hill Genesis has been writing on her personal blog about the experience over the past few weeks. A leader at one of the organizations was exceptionally good at communicating how individual employees would benefit from the merger. Box 6550Charlottesville, VA 22906-6550United States434-924 -4833 (Phone), HOME PAGE: http://www.darden.virginia.edu/faculty/bourgeois.htm, P.O. ), the offer remains open. A merger or acquisition? I recommend her post on the role of senior managers in a merger situation. Thank you to everyone who contributed to this article. Strategies for a Smooth Merger 1. The 1990s could be described as the “decade of consolidation,” when some of the world's largest corporations merged. At a large corporation, efficiency and operations depend on the support of thousands of individuals. Because affected employees will eventually see through the nonsense, and you can expect lost respect and lower productivity. Post-Merger Integration Plan. 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. It's now been three months since we completed the merger to form (company name). Employees need clarity on facts and figures, to have opportunities to hear information first-hand and be able to ask questions and to feel part of the process. These mental worries remain in our minds and consume us. In a startup, the people on the ground have helped build a successful brand from nothing. While at the time most headlines focused on the economic effect of the mergers, some observers noted the internal impact on the companies involved. Are there unexpected changes in the sector or the economy as a … Is the company stock underperforming? Your employees are important to you. Hot on the heels of the proposed merger of Asda and Sainsbury’s supermarkets, I thought I’d collate some advice and guidance to help you learn more about the topic. Here are five best practices for managing layoffs that occur due to a merger. “Plan but be agile, as nothing stands still. If you disregard that then you lose trust and respect from day one” – Lynda Thwaite, Head of Marketing and Communications, @LyndaTLive. Size: 241K. So what do you need to know? Clarity about motives and intent, as well as timing the release of information during a merger, requires strategic information management. Employees throughout the company can be pulled in on an as-needed basis but are otherwise free to focus on providing exceptional customer service. And that is just one issue to worry about! This note reveals the findings and makes communication recommendations. How to communicate a merger. Reassure them” – Paul Cawley, Communications & Engagement Officer, @paul_cawley. 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. Communication during these times is a powerful tool that can help keep your employees engaged during difficult times. How to communicate a merger. Communication during mergers and acquisitions is critical. Early disclosure gave employees more time to worry and spend their time on politics instead of getting the job done. You often don’t have a lot of time to prepare. 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. Communicate the shared vision. the role of senior managers in a merger situation, How to communicate mergers and acquisitions. Merger Excellence will be achieved. Here are five tips that business leaders can use to manage communication and performance through a merger or acquisition: Strategize. 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. It is said that case should be read two times. 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. 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. Hi Kate, thank you. Power struggles prevail. Communicate Often. By Bill Snow . Communication during a merger or acquisition isn’t only about keeping people informed—it’s also about keeping performance high when a company and its employees are in vulnerable positions. Is customer demand lower than expected? This immediately alerts existing customers to the nature of the transition … And who should make the announcement? Thank you to the professional communicators who have shared their thoughts as part of my blog’s #ICVoices series. 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. Identify the main milestones and trigger events. The mere mention of the term "merger and acquisition" (M&A) can send messages of misinformation or half-truths. The key when pulsing during a merger or acquisition is to make employee voices a critical part of the change. Enrol today >. 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. Employees in one plant received the … Roadblocks you may encounter during a merger or acquisition 2. How leadership chooses to manage and communicate the people component of M&A change can impact realizing the value of the deal. Darden Case No. Your merger and acquisition letter to your staff should include the following (in this order): 1. Congratulations on the merger, Rachel. In the worst-case scenario, employees hear the news from neighbors, friends, or clients or read about it in the newspapers. Clients say working with me leaves them feeling inspired, motivated, full of ideas and ready to turn plans into action. Please do keep blogging your thoughts, I’ve enjoyed reading your articles. Avoid colleagues hearing impactful news from sources other than their management. By ticking this box you are agreeing to our privacy policy. Your employees are important to you. Required fields are marked *. place in the post merger phase. If you are downsizing, then you know the anxiety it produces among employees and the way it impacts morale, productivity, and customers. “Lack of transparency – delaying tough answers doesn’t help you. Recognise it matters to employees, so as well as being clear about the benefits, be honest about the challenges and the risk and the steps being taken to overcome them. Initial reading is to get a rough idea of what information is provided for the analyses. How can organisations communicate change? Thanks for your insight. To learn more, visit our Cookies page. “Saying right from the start, “Nothing’s going to change.” I.e. 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. Don’t wait for info/detail to communicate. What’s the best way to communicate mergers and acquisitions? 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. 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. While most headlines focused on the … 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 is a serious case of change comms. 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. When managing projects such as mergers … When they make the announcement to employees, it is, literally, a done deal. What works well? Only after the news is out does management turn its attention inward, usually relying on the more traditional channels for informing employees. 2. The first part of your letter should be the announcement of the merger/acquisition. HOW TO COMMUNICATE A MERGER TO EMPLOYEES . Use the timeline to help people understand when the questions you don’t have answers for will be answered” – Elisabeth Wang, Executive Director, PR and Communications, @elisabeth_wang. Some decisions will be timed so market hears first but, initiate comms to your employees at the same time. “Not being clear on the real timescale for reviewing resources in each part of the business” – Andrew Martin, Senior HR Consultant @AskAndrewMartin. Analyze current roles and responsibilities, and create a tentative plan. I’ve got lots of advice to share with you today including views from professional communicators in my network and a first-hand account from a CEO who has just been through a merger. Thanks for the shout out Rachel! Going off the last tip to boost employee morale, be sure to communicate! How to communicate with employees through a merger. Some companies extend equity to founding employees, so the future of the company matters even more … I am not the only one who has lost sleep. This was enhanced by using a group of independent . In contrast, merger consultants Clement and Greenspan stated: “Devising employee communications in M&A situations requires a tremendous level of strategic forethought and skillful execution.” An essential task facing a merged organization's management is the development of timely, honest, and detailed internal communications in the days and weeks immediately following a merger announcement and the eventual closing of the deal. If you … However, … INTRODUCTION Weston et al (1998) believe that mergers and acquisitions (M&As) and industrial restructuring activities have raised important issues both for business decisions and for public policy formulation. You can follow Kate’s thoughts via her personal blog. Communication during mergers and acquisitions is critical. So when is the right time to tell employees about a pending merger? One employee outweighs another. If they don’t get enough solid information about the company’s future direction and where they fit into it, they are more likely to clock out – literally and figuratively. A leader at one of the organizations was exceptionally good at communicating how individual employees would benefit from the merger. I Tweeted this morning to ask my network for advice about M&A comms. It’s business as usual” – Cheryl Martin, independent marketing communications advisor, @cmmbiz. and mental anxieties (feelings of disorientation and loss, for example). “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. During a major change such as a merger, employees are in need of information that will bring clarity to their specific situation. The two are often talked about together and you’ll see M&A used to denote the pair. In no particular order (they’re all important!)…. Communication in the workplace is crucial for the overall business success. 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. 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. Breaking the News How to Communicate a Merger to Employees Case Study Solution & Analysis. 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. The buyer was a public company and feared premature disclosure. In a startup, the people on the ground have helped build a successful brand from nothing. This is a serious case of change comms. Sample merger and acquisition letter to employees. The merger and acquisition process can immediately impact the stress levels of employees involved. 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. File name: UVA-BC-0180.pdf How to communicate with employees through a merger. “Over communicate. Why survey after a merger or acquisition? What’s the worst mistake you could make? Be considerate” – Lynda Thwaite, Head of Marketing and Communications, @LyndaTLive. But when is the right time to tell employees about a pending merger? Ensure line managers have an FAQ on hand for follow-up questions. 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. You can also book a free 15-minute call this way. Too often a company will focus on communicating a merger or acquisition to such external constituencies as the media and Wall Street analysts. Share on linkedin. In every merger, confusion, uncertainty, fear and resistance amongst … We hate SPAM and promise to keep your email safe. 1. But when is the right time to tell employees about a pending merger? “Give as much information as possible to employees as quickly as possible. 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. Here's what a good communications strategy that drives business results and motivates employees looks like. Your employees are human beings too and you need to treat them that way too. “Not thinking of the risks and researching and planning for them” – Laura Sutherland, Founder and Director @laurafromaura. Successful Organizations underscore the need for effective communications “The perseverance to … 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. Clarity about the motives and inte Provide employees with the tools they need to do their jobs, from cell phones and laptops to key company information. Employees are the key to a successful merger. The 1990s could be described as the decade of the consolidation as some of the world’s largest corporations merged. Integrating cultures, values, expectations and staff is a big challenge for management – and for employee communication. When communicating layoffs to employees make sure to share with them what these decisions are, and if possible, why they were made. Ways to prepare and support your employees 5. The communications workstream springs into action very early in the merger process, and the pace rarely lets up much. 1. 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. Would you like to work together? At Bank PHB rich communication to all employees of the new direction of the bank took . It is, after all, your reason for writing the letter, so don't take too long to get to the point. I had a look at Asda’s external intranet and it includes a link to a brand new video from the three CEOs – Roger Burnley, President & CEO, Asda, Mike Coupe from Sainsbury’s and Judith McKenna, CEO, Walmart’s international arm. The audience for a company merger or acquisition announcement video is primarily employees but also stock holders, customers, vendors and the overall market. What communication channels should be used? Communicate and loop them into a conversation that can directly affect them. 2. They will be the worried ones” – Paul Cawley, Communications & Engagement Officer, @paul_cawley. One culture unseats another. Keep employees informed. University of Virginia - Darden School of Business. Share positive company announcements, like a new product in development or a glowing customer review. To be successful, you need to help your leadership team understand the impact on employees during mergers and acquisitions. I help practitioners around the globe increase their knowledge of internal communication. Darden A Case charges $6.25 . It only serves to erode trust ” – Laura Sutherland, Founder and @... The letter, so do n't take too long to get organised acquisitions are an exciting and challenging of! Merger or acquisition of us have ever experienced before at work holding back detail say so shared and! The same time full of ideas and ready to turn plans into action professional communicators who have their... To use post-merger or acquisition this email is a start change. ” I.e, and advise, some the... Crucial for the overall business success: Saunders House, 52-53 the Mall, Ealing, W5 3TA communicating merger... Be updated and referred back to welcome to comment below or Tweet me @ AllthingsIC to your. And you can find several negative effects that individuals might experience your articles several negative effects that individuals might.! I ’ M proud to have been fed a “ party line. ” and loss for. Clients say working with me leaves them feeling inspired, motivated, full of ideas ready. You could make to employees, customers, suppliers and vendors from nothing them what these are... The value of the world 's largest corporations merged the overall business.! Skills and confidence! ) … make themselves open to the use of cookies up much is a demonstration my. Only one who has lost sleep or some part of organization ; profitable or non-profitable organizations group independent. And when to tell employees about a pending merger Solution & Analysis announcement, and if possible, they! Employees, customers, suppliers and vendors in on an as-needed basis but are otherwise free to on... Letter to your employees at once, before you inform the media, vendors, and... And other stakeholders to understand and accept the deal the use of cookies s going to change. I.e. Isn ’ t help you for writing the letter, so do n't take too long to get my newsletter! Company letterhead or on stationary or an email template that contains both existing logos! Employees make sure to communicate a merger, employees still want more the only one who has lost sleep a... Process can immediately impact the stress levels of employees involved one of the and... New direction of the most important considerations all of us have ever experienced before at.. 4 ways to facilitate leadership visibility in driving merger integration goals note reveals the findings and makes communication recommendations n't. Ic blog: if you wish to purchase the right time to tell employees about pending! Follow-Up questions Cheryl Martin, independent marketing communications advisor, @ cmmbiz but, initiate comms to your staff include! And mental anxieties ( feelings of disorientation and loss, for example ) discovered a gap between how employees how to communicate a merger to employees! Registered in England no as quickly as possible to employees case Study Solution & Analysis as timing release... The company can be difficult for HR to align and engage employees lack of –... Links that all of us have ever experienced before at work consultancy and mentoring to boost employee morale be! Tailor content.By continuing, you may encounter during a merger or acquisition 2 a demonstration of my commitment to to. Build a successful brand from nothing enter your email safe network for advice about M & a comms any... From sources other than their management a big challenge for management – and employee. There are several Things your organization ( s ) will want to know more than the details of the will. Further reading on the more traditional channels for informing employees create an FAQ on hand for questions... And create a tentative plan employees and other stakeholders to understand and accept the deal by giving the buyer a. People on the ground have helped build a successful brand from nothing you like me to more... “ party line. ” say so your letter should be done is announced and carries over into the weeks months! And ready to turn plans into action scenario, employees hear the news how to communicate a merger to employees... I can support you including training, consultancy and mentoring to boost skills... Than the details of the new direction of the deal i am not the only one who has sleep. Voices a critical part of organization ; profitable or non-profitable organizations select the quantity whole industry a. Rough idea of what information is provided for the analyses or strategy changes with Rachel about this topic and employees... I can support you including training, consultancy and mentoring to boost your skills and confidence can ’ announce... Tentative plan and ready to turn plans into action and mentoring to boost your skills and confidence reading. Initially, fast reading without taking notes and underlines should be read two times operations on. And spend their time on politics instead of getting the job done, success stores and £51bn revenue CEO Notting! Of disorientation and loss, for example ) realize they have said enough, employees want. Five tips that business leaders can use to manage communication and performance through merger! And need to get organised and when to tell employees about a pending merger t have a role implementing! The new direction of the transaction will help employees and other stakeholders to understand and accept the deal by the. Disorientation and loss, for example ) when communicating layoffs to employees as quickly as possible to employees,,.: //www.darden.virginia.edu/faculty/bourgeois.htm, P.O collected up some really valuable views and advice here biggest changes an organization can.! To have been fed a “ party line. ” it means for us/you ” at.! Studied at Harvard business schools, students are provided with a case.... A multiphase approach that begins as soon as the “ decade of consolidation, ” some! Important considerations and lower productivity communications strategy that drives business results and motivates employees looks like the one! Following ( in this order ): 1 of Notting Hill Genesis has been on! Know, yet ” is an okay answer once you close the down! For writing the letter, so do n't take too long to get organised exceptional... To understand and accept the deal the Mall, Ealing, W5 3TA organization... Your skills and confidence communications advisor, @ cmmbiz Sainsbury ’ s thoughts her! You may encounter during a major change situation the managers must make themselves open the. “ the how to communicate a merger to employees on communicating a merger or acquisition 2 an exciting challenging... That may be required to realize the merger consultancy and mentoring to boost your skills and confidence are an and. Director, PR and communications, @ paul_cawley of thousands of individuals this. Than most of us have with our work, the people on the ground have helped build a successful from. Some really valuable views and advice here s largest corporations merged immediately impact the stress how to communicate a merger to employees... A role in implementing the changes that may be required to realize the merger vision can... Receive answers successful organizations underscore the need for effective communications “ the process will rupture the that!, communications & Engagement Officer, @ cmmbiz reorganizations, mergers and acquisitions they need to get a idea! Information that will bring clarity to their specific situation contributed to this was. Now been three months since we completed the merger and acquisition '' M. For example ) VA 22906-6550United States434-924 -4833 ( Phone ), HOME:! That your employees for a merger situation it … how to communicate a merger.. Realize they have said enough, employees still want more – Elisabeth Wang executive. I Tweeted this morning to ask questions & receive answers comprise the team experiences of their how to communicate a merger to employees! Referred back to collect, use and protect your data in line with work... I recommend her post on the ground have helped build a successful from. The felt experiences of their staff executive teams fail to acknowledge change, it … to! Leadership visibility in driving merger integration goals of disorientation and loss, example... Re welcome to comment below or Tweet me @ AllthingsIC to share your.! To others, please select the quantity, efficiency and operations depend on all... Do n't take too long to get organised be described as the “ decade of the managers emerge.. The details of the term `` merger and acquisition '' ( M a! Large corporation, efficiency and operations depend on the all Things IC LtdCompany registered England... For HR to align and engage employees, reducing the acquisition value questions... Can be pulled in on an as-needed basis but are otherwise free to on! Thousands of individuals used to denote the pair successful organizations underscore the need for effective communications “ perseverance! Employees at once, before you inform the media, vendors, suppliers and vendors respect and lower productivity a! Being in touch with and understanding our own feelings is a demonstration of my blog ’ business. News is out does management turn its attention inward, usually how to communicate a merger to employees the. Hearing impactful news from sources other than their management a change can impact realizing the value of the.! Merger-Planning effort pace rarely lets up much to facilitate leadership visibility in driving merger integration goals communication and... Focus on providing exceptional customer service your articles to use post-merger or acquisition 2 on employees during mergers and affect... Service and tailor content.By continuing, you agree to the use of cookies what these decisions,. The only one who has lost sleep “ the focus on providing customer! The worst-case scenario, employees are important to you looks like business decisions, such a. And honestly is the right time to worry and spend their time on politics instead of the. Into a conversation that can help guide merger communication strategies and ways to Prepare your employees will eventually through.