<p>Mergers are like arranged marriages. Everyone hopes the union will be synergistic, the parents hope they can fall in love, and the newlyweds just hope they can learn to like and respect each other. Unfortunately, most mergers are drafted by lawyers and financial folks, without much regard for the people side of the business. Yet, all the experts will tell you, it's the cultural issues that can make the deal go sour.</p>
<p>Here are some best practices from work I've done with companies who have said, "I do."</p>
<p><b>Get all the executives on the same page.<br>
</b>Having one singular voice is critical to provide direction, clarify misconceptions and convey positive energy. The key executive should be high enough within the organization and be influential enough to marshal resources. Ideally, the President or CEO would fill this role, since this person's absence raises questions, "Isn't this important enough for the CEO to be telling us about it?"</p>
<p>Here are some strategies to use:</p>
<ul type="disc">
<li>Have regular updates with all employees.</li>
<li>Draft Question & Answer talking points for all executives.</li>
<li>Make sure executives of both organizations are telling the same story.</li>
</ul>
<p><b>Communicate as much as you can as fast as you can.<br>
</b>Employees will trust an executive who says, "I don't know yet...but here's as much as I do know." They will be less anxious and the rumor mill will be less active.</p>
<p><b>Communicate at a consistent level.<br>
</b>Employee momentum will stall if you start out with a high level of communication that fades over time. Here are some strategies to consider:</p>
<ul type="disc">
<li>Monthly face-to-face updates.</li>
<li>A merger hot line where employees can record questions to be answered at updates and in newsletters.</li>
<li>Videoconferences for far-flung groups.</li>
</ul>
<p><b>Engage managers first.<br>
</b>Employees' key connection to the organization is through their direct supervisors. They need to be a part of the communication chain. Give them the tools and the messages to convey the benefits and impact of the merger to their direct reports. While the senior executive needs to be the principal spokesman, the directors and supervisors need to play a role in addressing, "What does this mean to me?"</p>
<ul type="disc">
<li>Establish their responsibilities in communicating about the merger.</li>
<li>Address their issues so they get on board quickly.</li>
<li>Include them in planning meetings so they have a good understanding of the issues.</li>
<li>Give them talking points on issues such as changes in benefits, so they can answer questions and have meaningful discussions.</li>
</ul>
<p><b>Communicate the staffing and HR issues as soon as they are set.<br>
</b>Employees want to know about issues that affect them where they live:</p>
<ul type="disc">
<li>Pay and reward systems</li>
<li>Retirement and other benefits</li>
<li>Changes in policies and procedures</li>
<li>Career growth opportunities</li>
<li>Job loss and how people will be treated who lose their jobs</li>
</ul>
<p><b>Focus on their career outlook.<br>
</b>In one study, almost 60 percent of the top managers of acquired companies leave within five years of the acquisition. The challenge is to create an environment where people want to compete for a role, without making promises or causing defections.</p>
<ul type="disc">
<li>Identify career opportunities within the new organization</li>
<li>If employees are required to change jobs, how will they be trained?</li>
<li>How can employees reach out for new opportunities?</li>
</ul>
<p><b>Assess cultural fit.<br>
</b>Assimilation is much quicker if there is a transition team with members from both entities. It's best to choose people who represent critical functional areas of every section of the business. This team helps to shape a common vision for the new organization.</p>
<ul type="disc">
<li>Subcommittees can work through changes to key business units or functions</li>
<li>A member of the Communication Department should be a member. It helps to eliminate inconsistent messages.</li>
<li>Do a culture audit in both organizations with personal interviews and questionnaires. Identify gaps and develop strategies where the fit isn't smooth.</li>
<li>Introduce a "Temperature Check." It's a recurring survey comprising questions addressed to a fixed group of opinion leaders in the company. It can help the organization gauge morale, trust, and other underground issues. This can be done monthly and then reduced to quarterly.</li>
</ul>
<p><b>Outline process changes.<br>
</b>Infrastructure issues need to be addressed quickly. Telecommunication, computer networks and methods of information exchange are key components for faster integration.</p>
<ul type="disc">
<li>Distribute a key contact list so they know whom to call.</li>
<li>Distribute an organization chart, even if some boxes aren't filled in.</li>
<li>Schedule off site meetings so people from both organizations can meet face-to-face.</li>
<li>Create an ombudsman role, using a trusted member of the transition team to help laid off employees or employees in a state of flux.</li>
</ul>
<p><b>Joan Lloyd</b> is an executive coach, management consultant, facilitator and professional trainer/speaker. Reach her at Joan Lloyd & Associates, (800) 348-1944, <a href="mailto:info@joanlloyd.com">info@joanlloyd.com</a> or <a href="http://www.joanlloyd.com/">www.JoanLloyd.com</a> © Joan Lloyd & Associates, Inc.</p>
<p>Joan Lloyd has developed tools to help you recruit the best employees and create a culture that will encourage them to stay. They are available at: <a href="http://www.joanlloyd.com/store/default.asp">http://www.joanlloyd.com/store/default.asp</a> </p>
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