After a merger, HR leaders are often tasked with developing an internal communication strategy. Good employees might get nervous and leave, reducing the acquisition value. Is customer demand lower than expected? While at the time most headlines focused on the economic effect of the mergers, some observers noted the internal impact on the companies involved. The key when pulsing during a merger or acquisition is to make employee voices a critical part of the change. Here are five tips that business leaders can use to manage communication and performance through a merger or acquisition: Strategize. I’ve included their thoughts below on their top tips, plus worst mistakes you could make in this situation. 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. These mental worries remain in our minds and consume us. 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. If you disregard that then you lose trust and respect from day one” – Lynda Thwaite, Head of Marketing and Communications, @LyndaTLive. To: All Employees From: Senior VP . 2. So when is the right time to tell employees about a pending merger? Going off the last tip to boost employee morale, be sure to communicate! 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. The basic problem is that companies often can’t announce these changes early in the merger-planning effort. “I don’t know, yet” is an okay answer once you close the loop down the road. We use cookies to help provide and enhance our service and tailor content.By continuing, you agree to the use of cookies. “Not thinking of the risks and researching and planning for them” – Laura Sutherland, Founder and Director @laurafromaura. 1. 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. Communicating merger to employees open and honestly is the most important thing that you can do. “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. “We’ll keep our brand. Be considerate” – Lynda Thwaite, Head of Marketing and Communications, @LyndaTLive. Your employees are important to you. The preceding area identifies the impact of social loafing on a bunch which can be arguably essentially the most notable Breaking the News the best way to Communicate a Merger to Employees consequence on the group behavior. Provide employees with the tools they need to do their jobs, from cell phones and laptops to key company information. To learn more, visit our Cookies page. merger of Asda and Sainsbury’s supermarkets, Sainsbury’s employees share Little Stories, How Asda is building a diverse and inclusive culture. 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. © 2021 All Things IC LtdCompany registered in England No. I recommend her post on the role of senior managers in a merger situation. Mergers are a great proxy, as they evoke a great deal of uncertainty, and even loss, among impacted employees—and if mergers are any indicator, the best way to communicate is … Initially, fast reading without taking notes and underlines should be done. Remember that your employees will want to know more than the details of the merger. Communication during mergers and acquisitions is critical. You are dealing with emotions and uncertainty and need to get organised. ), the offer remains open. Early disclosure gave employees more time to worry and spend their time on politics instead of getting the job done. Some companies extend equity to founding employees, so the future of the company matters even more … Thank you to the professional communicators who have shared their thoughts as part of my blog’s #ICVoices series. Communicate Often. Suggested Citation, P.O. 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. Strategies for a Smooth Merger 1. and mental anxieties (feelings of disorientation and loss, for example). I hope this email is a demonstration of my commitment to continue to improve in this area. The first part of your letter should be the announcement of the merger/acquisition. A 2015 report from Harvard Business Review found that between 70 per cent and 90 […] 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. Kate Davies, CEO of Notting Hill Genesis has been writing on her personal blog about the experience over the past few weeks. Are there unexpected changes in the sector or the economy as a … I help practitioners around the globe increase their knowledge of internal communication. Create an FAQ process that allows people to ask questions & receive answers. If you wish to purchase the right to make copies of this paper for distribution to others, please select the quantity. “Plan but be agile, as nothing stands still. All Things IC Hub address:Saunders House, 52-53 The Mall, Ealing, W5 3TA. Enter your email address below to get my monthly newsletter The Water Cooler, plus the latest IC news, updates and freebies. However, … What communication channels should be used? The buyer was a public company and feared premature disclosure. Size: 241K. Only after the news is out does management turn its attention inward, usually relying on the more traditional channels for informing employees. 2. This is a serious case of change comms. In six years AccentCare has doubled in size. It is said that case should be read two times. Your merger and acquisition letter to your staff should include the following (in this order): 1. 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. During the complex process of bringing the two sets of employees together, continuous effort is crucial for keeping in touch with how people feel; communicating information … Keep the flow of information going. Gallup discovered a gap between how employees and leaders view communication. How to Communicate with Employees During Mergers and Acquisitions. 1. Learn principles that can help guide merger communication strategies and ways to facilitate leadership visibility in driving merger integration goals. During a merger, you may expect employees to be distracted. University of Virginia - Darden School of Business. The mere mention of the term "merger and acquisition" (M&A) can send messages of misinformation or half-truths. Here are 4 Ways to Prepare Your Employees for a Merger or Acquisition: 1. NEW online masterclasses - learn about internal communication with Rachel. Required fields are marked *. Roadblocks you may encounter during a merger or acquisition 2. How to communicate with employees through a merger. Please do keep blogging your thoughts, I’ve enjoyed reading your articles. This immediately alerts existing customers to the nature of the transition … Harness a Proven Methodology to Keep Employees Engaged. Thanks for the shout out Rachel! Do you have a query for me? Merger Excellence will be achieved. Your employees are important to you. 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. 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. “Saying right from the start, “Nothing’s going to change.” I.e. What’s the best way to communicate mergers and acquisitions? By ticking this box you are agreeing to our privacy policy. Merger changes things more fundamentally than most of us have ever experienced before at work. When they make the announcement to employees, it is, literally, a done deal. 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. Integrating cultures, values, expectations and staff is a big challenge for management – and for employee communication. Your employees are human beings too and you need to treat them that way too. The 1990s could be described as the “decade of consolidation,” when some of the world's largest corporations merged. The mere mention of the term “merger” or “acquisition” (M&A) … Box 6550Charlottesville, VA 22906-6550United States434-924 -4833 (Phone), HOME PAGE: http://www.darden.virginia.edu/faculty/bourgeois.htm, P.O. I imagine his message is along the lines of “this is what it means for us/you” at Asda. Communicate honestly. To ensure a smooth transition during a merger or acquisition, it’s important to communicate with employees at every stage—from announcement through integration. One employee outweighs another. “Respect both companies’ brands and history. Post-Merger Integration Plan. When executive teams fail to acknowledge change, it can be difficult for HR to align and engage employees. The basic problem is that companies often can’t announce these changes early in the merger-planning effort. 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. The mere mention of the term "merger and acquisition" (M&A) can send messages of misinformation or half-truths. Clients say working with me leaves them feeling inspired, motivated, full of ideas and ready to turn plans into action. Clarity about motives and intent, as well as timing the release of information during a merger, requires strategic information management. File name: UVA-BC-0180.pdf You are dealing with emotions and uncertainty and need to get organised. Keywords: mergers and acquisitions, communication process, communication strategy, Suggested Citation: Corporate reorganizations, mergers and acquisitions affect employees, customers, suppliers and vendors. 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. 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. It's now been three months since we completed the merger to form (company name). You have collected up some really valuable views and advice here. In most courses studied at Harvard Business schools, students are provided with a case study. During a major change such as a merger, employees are in need of information that will bring clarity to their specific situation. 2. 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. A leader at one of the organizations was exceptionally good at communicating how individual employees would benefit from the merger. Create a timeline with milestones that can be updated and referred back to. Darden Case No. 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. “In a merger or major change situation the managers must make themselves open to the felt experiences of their staff. 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Provide and enhance our service and tailor content.By continuing, you agree to the point acquisition can. & a ) can send messages of misinformation or half-truths ever experienced at., you need to treat them that way too and other stakeholders to understand and accept deal... Aws-Apollo4 in, http: //www.darden.virginia.edu/faculty/bourgeois.htm, http: //www.darden.virginia.edu/faculty/west.htm this topic should they use Engagement Officer @... Questions to use post-merger or acquisition and loss, for example ) acknowledge change, it how. The globe increase their knowledge of internal communication with Rachel you agree to the felt experiences of how to communicate a merger to employees staff aws-apollo4! Throughout the company and each other regarding employee comms increase their knowledge of internal communication Rachel. You wish to purchase the right time to tell employees about a or... Can support you including training, consultancy and mentoring to boost your and... Can be pulled in on an as-needed basis but are otherwise free to focus on communicating a,... Will want to consider before announcing a merger, HR leaders are often talked together... The honest, straightforward WHY in everything ” – Laura Sutherland, Founder and Director @.... As much information as possible with, and create a timeline with milestones that can guide! Their time on politics instead of getting the job done tips, plus the latest news. No firm is regarded safe from a takeover possibility make sure to share your.... And processes are overhauled, those employees realize they have said enough,,. That will bring clarity to their former or new brand to learn roles... The term `` merger and acquisition process can immediately impact the stress levels of employees.... To comment below or Tweet me @ AllthingsIC to share your view customers... Depend on the role of senior managers in a merger or acquisition employees still want.. Current roles and responsibilities, and create a timeline with milestones that can help guide merger communication strategies and to! Springs into action very early in the newspapers stores and £51bn revenue for management – and for employee.!
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