News, trends, and stories about the non-desk workforce. Well, to be honest-- a lot.The list below goes over each communication, the phase of the transaction, and who the intended audience is. Sample employee email communication for an employee satisfaction survey. Announce the merger. Start with the vision. Often, communications efforts fall flat in this area. Integrating a workforce during a merger or acquisition can be an incredibly arduous process. The pre-close period, after the merger announcement, requires special attention. Key employees could feel on the outs and leave, workforce morale and productivity could plummet, and big customers could take business elsewhere. After the announcement, the team will have time to refine the governance process and to add members. (2) As much as possible, make sure that everyone is on the same page. In order to mitigate this dissonance, managers should try to provide all relevant information to employees once feasible. This can be difficult if you lack the proper comms platform to reach all employees. Winging it will more than likely lead to disaster – a plan must be put into place. 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 … In addition, to maintain continuity of supply, it’s essential to make vendors aware of key changes and to keep them up to date even if there aren’t any. We strive to provide individuals with disabilities equal access to our website. Use minimal essential Some outsource the work entirely to the HR and communications functions—a missed opportunity for the integration team and executive leadership. It would be wise to consider an employee communication plan a vital element in the event that an enticing deal comes to fruition. The merger will provide the path to improved compensation and benefits for employees. It also works to make use of the opportunities and advantages that they were receiving from th… 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). tab, Engineering, Construction & Building Materials, Travel, Logistics & Transport Infrastructure, McKinsey Institute for Black Economic Mobility. Every merger has a wide range of stakeholders, and each kind of stakeholder requires a customized approach and targeted messaging. As a result, the executive may have a different perception of progress than the rest of the organization, and may be susceptible to turning a blind eye to problems. (Source: IMAA) Effective communication plays a critical role in minimizing the impact and reassuring employees. You are dealing with emotions and uncertainty and need to get organised. Sample merger and acquisition letter to employees. Frequency During organizational change, it is important to communicate … We’ve compiled seven tips for managers and executives to help ease the M&A transition: Oftentimes, senior leadership is so focused on the technical aspects of the deal that they forget the communications side. Example 3: Company merger letter. hereLearn more about cookies, Opens in new Too often, we hear of employees who don’t know, on Day 1, who their new bosses will be or what processes to follow. tab. In a recent merger, targeted communications and leadership time spent cultivating the high performers—including one-on-one discussions between them and the leadership on future career paths—let them know how greatly they were valued. To be successful, an internal communications strategy must be at the core of the merger – as well as tools to guarantee employee engagement at this volatile time. Never miss an insight. Regulatory bodies and government officials are concerned about anticompetitive behavior and job losses. Social media plays an increasingly key role here, especially for engaging employees, customers, and the general public. People we call “fire spotters”—well-respected employees who play the influencer role within organizations—can aid the feedback process. (6) Nonverbal communication is just as, if not more important, than verbal communication. 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. The goal is to spend the majority of time and energy on the material events, while making sure that regular updates continue to flow. During a major change such as a merger, employees are in need of information that will bring clarity to their specific situation. In an annual survey of 10,000 U.S. workers, the Kenexa Research Institute found that workers lose confidence in the future of their company following a merger, which causes some employees to quit. (4) Provide the tough information during and after integration, Unfortunately, many mergers and acquisitions end up leading to redundancies. Here are 14 internal communication tips we’ve seen work during difficult times: Start inside. The change story—a clear and compelling picture of what must be done to unlock the deal’s value, and why—signals that the merger departs from “business as usual.” The core messages are personalized further for each group of stakeholders. This is a serious case of change comms. Learn more about cookies, Opens in new Alignment also sets up and clarifies the conversation about who will be doing what, and when. Sample merger and acquisition letter to employees. Before they can get there, however, they need to understand what will happen to them. The communications leader manages the communications workstream, working closely with the integration leader to develop, syndicate, and execute the plan. We'll email you when new articles are published on this topic. A structured focus on and investments in communications, with the support of senior leadership, have been shown to yield great benefits: a motivated employee base and engaged vendors, partners, and other stakeholders, all supporting the newly formed company’s success. Broadly speaking, stakeholders can be classified into two groups: external and internal. 1. This is also an opportune time to mount a road show for top customers and to address communications to the broader base of customers, reiterating the new company’s commitment to them. Employees decode it to … During a recent merger in which the communications team was highly regarded by C-level executives in both organizations, the team worked closely with the IMO to build a detailed communications plan (the merger’s “who, what, when, why, where, and how”). A study by the Harvard Business Review highlights the degree to which companies have increased collaboration in recent years. It is one of the few merger workstreams that go “live” immediately, as soon as merger conversations begin. 2. Harness a Proven Methodology to Keep Employees Engaged. Some managers will do everything to avoid having to deal with bad news. 3. They must be excited about the new company’s vision and buy into it. Employees are the key to a successful merger. This is a one-time bonus that the organization will give out to high-impact employees. The recent merger with Doe Associates necessitates the closing of our Springfield outlet; however, we are happy to report that all other outlets have vacancies, and we anticipate that most Springfield employees … Communications should start well before the engagement survey begins, and it should continue after the survey results have been received. When it comes time sell your company, one of the toughest issues is communicating the process to employees. The communications plan is a vital tool to inform and influence stakeholders before transactions close, so it is critical to start early and get the message right, both before and after the close. One mistake we see companies make frequently is “going dark”—communicating little or nothing between the announcement and Day 1. Employees are critically important stakeholders. Here are five components of effective communication to keep in mind while facilitating organizational change. Experts indicate that this activity is expected to continue rising during 2015. The integration steering committee reviews and approves the overall approach to merger communications, as well as messaging to core stakeholders, and serves as the final decision maker on issues that can’t be settled elsewhere. Press enter to select and open the results on a new page. Addressee Address City, State Zip. First and foremost is telling employees what’s changing and what’s not. strategies that utilize effective organizational communication practices. Unleash their potential. If and when they do begin thinking about how to communicate the transition to the rest of the organization, they don’t have a clear plan in place and/or the information from leadership comes too late to mitigate resentment, confusion and an overall seamless transition. One positive way to do this is to establish a company culture rooted in honesty and openness, which can allay employee anxiety during a potential company sale. Maintaining ongoing employee benefits communication is a key element in boosting employment satisfaction and engagement with your business. Today there are five very distinct generations of people in most workplaces, each communicating in different ways. Although in a perfect world, everyone in the organization would have the same information as everyone else, this of course isn’t realistic. Select topics and stay current with our latest insights, Communications in mergers: The glue that holds everything together. 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. This kind of communication engages employees and helps give them a sense that the changes have emerged from the organization as a whole, not imposed on it from on high. Of course, NEVER leak out confidential information, as it could threaten the entire deal. Internal stakeholders are primarily employees of the two merging companies, but distinct groups within them have different needs. If time is of the essence (for example, if you have a family emergency and need to take the day off), email is likely the best choice. Then expect lower productivity and loss of trust. Communicating changes to the employees. Each phase in the merger time line has its own unique communications focus (Exhibit 1). This is the first opportunity to tell all stakeholders the strategy and vision behind the merger. “Do I have job now?” “Will I have a job in the future?” “Whom will I be reporting to?” “Do I belong here?” Communicating with employees solely about the greater good, before addressing their personal situation, will probably be ineffective. Actually, the term “merger of equals” is a technical term used in M&A to indicate, for example, that the deal qualifies for a specific tax treatment. In particular, communications with unions or workers’ councils require careful preparation and often legal counsel. A leader at one of the organizations was exceptionally good at communicating how individual employees would benefit from the merger. 2. Communication challenges are one of the top factors that cause company synergies to fail in mergers and acquisitions. Oliver Engert is a senior partner in McKinsey’s New York office, where Kameron Kordestani is a partner; Becky Kaetzler is a partner in the Frankfurt office; and Anish Koshy is an associate partner in the Chicago office. Communication during these times is a powerful tool that can help keep your employees engaged during difficult times. According to a recent Mercer Transatlantic Study, 75 percent of executives surveyed said that communicating with employees and harmonizing corporate culture were the most important factors for post merger integration. Please click "Accept" to help us improve its usefulness with additional cookies. The terms of the bonus will be created so that the employees receive said bonus if they stay with the organization for a certain time frame. Employees decode it to mean that both companies will be treated as equals so far as integration decisions are concerned. When deciding whether to send a physical letter or an email, think carefully about the situation. Our flagship business publication has been defining and informing the senior-management agenda since 1964. What are the key elements of effective communication during a company merger? Recruiting these employees up front and using their support to gather feedback is quite helpful. However, given most humans are programmed to avoid confrontation, managers often withhold this information for far too long. Concerned employees might lose productivity, increase stress, or choose to leave the organization. Some previous work, however, has suggested that management should avoid communicating realistically with employees during mergers and ac-quisitions. Employees throughout the company can be pulled in on an as-needed basis but are otherwise free to focus on providing exceptional customer service. You might have your new company policy guide ready to distribute, especially if you are merging two companies with very different corporate cultures. If employees know what to expect, why you are conducting the survey, and how they will … Among the factors that impact M&A performance is the quality of the communication with employees. If you use a Balance Scorecard Model, take employees through the basics so that they can understand the meaning behind what you … Dear Fellow Employees: We are in the process of making a number … A structured communications plan plays a critical role in ensuring that employees are well informed and equipped to operate seamlessly from the beginning. In a recent merger, a couple of fire spotters quickly identified an impending wave of attrition. We typically see four roles: Effective and timely execution requires well-defined governance—a process for approving and disseminating communications. Post-Acquisition employees affected are welcome to apply for comparable positions at the Doe complex confrontation, managers withhold. 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