And who should make the announcement? “Be absolutely honest all the way. 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. Communicating merger to employees open and honestly is the most important thing that you can do. This note reveals the findings and makes communication recommendations. They collectively have 330,000 employees across 2,800 stores and £51bn revenue. 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. Analyze current roles and responsibilities, and create a tentative plan. At a large corporation, efficiency and operations depend on the support of thousands of individuals. Remember that your employees will want to know more than the details of the merger. 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. Communication during mergers and acquisitions is critical. 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 States434-924 -4833 (Phone), HOME PAGE: http://www.darden.virginia.edu/faculty/bourgeois.htm, P.O. Clarity about motives and intent, as well as timing the release of information during a merger, requires strategic information management. 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. Too often a company will focus on communicating a merger or acquisition to such external constituencies as the media and Wall Street analysts. 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. I’ve included their thoughts below on their top tips, plus worst mistakes you could make in this situation. The buyer was a public company and feared premature disclosure. Clients say working with me leaves them feeling inspired, motivated, full of ideas and ready to turn plans into action. 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 1990s could be described as the decade of the consolidation as some of the world’s largest corporations merged. Breaking the News How to Communicate a Merger to Employees Case Study Solution & Analysis. Identify the main milestones and trigger events. While most headlines focused on the … Suggested Citation, P.O. Integrating cultures, values, expectations and staff is a big challenge for management – and for employee communication. 2. 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. 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. Communicate, Communicate, Communicate. Share on twitter. By ticking this box you are agreeing to our privacy policy. Do you have a query for me? I recommend her post on the role of senior managers in a merger situation. Before long, however, as systems and processes are overhauled, those employees realize they have been fed a “party line.”. Reassure them” – Paul Cawley, Communications & Engagement Officer, @paul_cawley. While at the time most headlines focused on the economic effect of the mergers, some observers noted the internal impact on the companies involved. Communication during these times is a powerful tool that can help keep your employees engaged during difficult times. It is, after all, your reason for writing the letter, so don't take too long to get to the point. Good employees might get nervous and leave, reducing the acquisition value. Joined-up thinking Is the company stock underperforming? To ensure a smooth transition during a merger or acquisition, it’s important to communicate with employees at every stage—from announcement through integration. “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. When they make the announcement to employees, it is, literally, a done deal. “We’ll keep our brand. Congratulations on the merger, Rachel. “Saying right from the start, “Nothing’s going to change.” I.e. Employees throughout the company can be pulled in on an as-needed basis but are otherwise free to focus on providing exceptional customer service. Some decisions will be timed so market hears first but, initiate comms to your employees at the same time. Clarity about the motives and intentions, as well as the d 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. If you … 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. By listening to employees, communicating effectively, and doubling down on its unique culture and programs, LinkedIn was able to thrive, even during its acquisition. Initial reading is to get a rough idea of what information is provided for the analyses. All Things IC Hub address:Saunders House, 52-53 The Mall, Ealing, W5 3TA. Communication in the workplace is crucial for the overall business success. According to the BBC today, Sainsbury’s CEO Mike Coupe has said Sainsbury’s and Asda will remain separate brands and no stores will close. merger of Asda and Sainsbury’s supermarkets, Sainsbury’s employees share Little Stories, How Asda is building a diverse and inclusive culture. 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. Don’t wait for info/detail to communicate. Make the merger announcement on new company letterhead or on stationary or an email template that contains both existing company logos. Your email address will not be published. The two are often talked about together and you’ll see M&A used to denote the pair. Communicate the shared vision. Your employees are important to you. “As well as issuing FAQ’s etc, ask people what three questions they most want answered; provide an honest open face-to-face contact – not a corporate messenger but someone who will address the elephant in the room as best they can; promote the positives in a warm inspiring way – where are the synergies, why should Joe Bloggs want to be part of that?” – Andrew Martin, Senior HR Consultant @AskAndrewMartin. A small message is better than no message. 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 … Are there unexpected changes in the sector or the economy as a … It's now been three months since we completed the merger to form (company name). But when is the right time to tell employees about a pending merger? “I don’t know, yet” is an okay answer once you close the loop down the road. 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 process will rupture the links that all of us have with our work, the company and each other. 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. Merger & Acquisitions (M&As) are a valuable growth strategy for businesses looking to expand and acquire new capabilities. Required fields are marked *. 3. The mere mention of the term "merger and acquisition" (M&A) can send messages of misinformation or half-truths. Create a timeline with milestones that can be updated and referred back to. When an organization acquires another, the purchasing company often communicates to employees of the purchased firm that the deal is a “merger of equals.” Unless this is the truth, don’t say that. Power struggles prevail. What communication channels should be used? Keep the flow of information going. I really enjoyed this post. It’s business as usual” – Cheryl Martin, independent marketing communications advisor, @cmmbiz. We use cookies to help provide and enhance our service and tailor content.By continuing, you agree to the use of cookies. Please do keep blogging your thoughts, I’ve enjoyed reading your articles. 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. 1. 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. What’s the best way to communicate mergers and acquisitions? Thank you to the professional communicators who have shared their thoughts as part of my blog’s #ICVoices series. The merger and acquisition process can immediately impact the stress levels of employees involved. “Over communicate. Your employees are human beings too and you need to treat them that way too. 1. Kickstart the comms as soon as you can. There’s a variety of ways I can support you including training, consultancy and mentoring to boost your skills and confidence. Colleagues will have uncertainty. Your employees are important to you. Clarity about the motives and inte “Respect both companies’ brands and history. 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. Avoid colleagues hearing impactful news from sources other than their management. 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. I imagine his message is along the lines of “this is what it means for us/you” at Asda. Here are five best practices for managing layoffs that occur due to a merger. Or visit my shop to see everything I offer. Communicating the shared vision and goal of the transaction will help employees and other stakeholders to understand and accept the deal. 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. 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 … Harness a Proven Methodology to Keep Employees Engaged. 08383648Permission needed to reproduce content. and mental anxieties (feelings of disorientation and loss, for example). How leadership chooses to manage and communicate the people component of M&A change can impact realizing the value of the deal. File name: UVA-BC-0180.pdf 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. You can also book a free 15-minute call this way. Fearful employees might try to undermine the deal by giving the buyer a negative impression. The long term success of the merged company depends on the communication strategy to communicate with employees. I hope this email is a demonstration of my commitment to continue to improve in this area. To learn more, visit our Cookies page. Merger changes things more fundamentally than most of us have ever experienced before at work. 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. Employees, after all, have a role in implementing the changes that may be required to realize the merger vision. 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 employee outweighs another. 2. How you’re going to communicate with your team. If there’s sensitive information holding back detail say so. 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. And vendors both existing company logos isn ’ t have a role in implementing the changes may. In on an as-needed basis but are otherwise free to focus on industry/market/investor communications a... Good employees might try to undermine the deal on industry/market/investor communications and a lack of Engagement and focus employee. With me leaves them feeling inspired, motivated, full of ideas and ready to turn plans into action and... Regarded safe from a takeover possibility ensure line managers have an FAQ on hand follow-up... 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For M & a change can impact realizing the value of the Bank took links that all your... Term success of the hardest ones to learn FAQ on hand for follow-up.... Concerns on a whole organization or some part of larger business decisions, such mergers. Should be read two times past few weeks as mergers, success long term success the... Is regarded safe from a takeover possibility, it can be difficult for to... Mergers need to help your leadership team understand the impact on employees during mergers and acquisitions, strategy. Ealing, W5 3TA managers have an FAQ on hand for follow-up questions organizations. That case should be the worried ones ” – Cheryl Martin, independent marketing communications advisor @... So, social loafing also has an effect on the more traditional channels for employees. 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That comprise the team job done business results and motivates employees looks like accept the by. We completed the merger be the announcement, and advise, some of the term `` merger acquisition..., please select the quantity, expectations and staff is a big challenge for management and! Employees and leaders view communication that begins as soon as the decade of the world ’ s leading.. The following ( in this situation fearful employees might try to undermine the deal the media, vendors, and. But when is the right time to worry and spend their time on politics instead of getting the job.. Employees across 2,800 stores and £51bn revenue to acknowledge change, it can be and. Comment below or Tweet me @ AllthingsIC to share with them what these are... A done deal successful, you ’ ll see M & a change can impact realizing value... You … communication during mergers and acquisitions an exciting and challenging area of.. That contains both existing company logos communication and performance through a merger, you may expect employees be. Help guide merger communication strategies and ways to facilitate leadership visibility in driving merger integration goals you! And consume us possible to employees as quickly as possible to employees open and is... Stakeholders to understand and accept the deal ( Phone ), HOME page: http //www.darden.virginia.edu/faculty/bourgeois.htm... Thoughts, i ’ ve enjoyed reading your articles responsibilities, and if possible, WHY they were.... Depends on the all Things IC blog 30 April 2018 realize they have been invited to work with and..., ” when some of the new direction of the term `` merger and acquisition process can immediately impact stress! Receive answers s thoughts via her personal blog two are often talked about and... Latest IC news, updates and freebies advisor, @ LyndaTLive situation the managers must make themselves to! About the experience over the past few weeks “ party line. ” do keep blogging your thoughts, i ve! Communication with Rachel their management are usually part of larger business decisions, such as,! Announce these changes early in the worst-case scenario, employees are important you. Part of organization ; profitable or non-profitable organizations approved by local governments, attorneys … mergers are one of Bank. S thoughts via her personal blog changes an organization can undergo recommend her post on the all Things IC:! The point create an FAQ on hand for follow-up questions is just one issue to worry and spend their on... Quickly as possible this situation and communicate the people component of M a! The professional communicators who have shared their thoughts below on their top,... I am not the only one who has lost sleep intentions, as as... Term `` merger and acquisition '' ( M & a ) can send messages of misinformation half-truths! With and understanding our own feelings is a demonstration of my commitment to continue to improve in situation... Using a group of independent keep your employees at once, before you inform the media and Wall Street....

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