During the M&A process, you must depend on your workforce to support a successful deal. Preparing your workforce at every step along the way is one of the most important things you can do to see this deal through to completion. Here’s what you need to know.
The Importance of Internal Communications
Poor communication is a common culprit when mergers fail to produce sufficient growth. Employees may speculate in the wake of a transaction announcement. The rumor mills take over. Because virtually every employee’s first priority is going to be keeping their job, they may jump ship if you don’t ease their fears. Poor communication fosters uncertainty, and wastes your time on rumors.
Keep your employees up to date, with accurate and regular communication. Three key pieces of information should guide your communications:
- Employee trust and loyalty are in danger. If you mislead your employees, they won’t believe you next time. And if you don’t give them reliable information, they’ll search it out somewhere else.
- Don’t blindside your team. It’s disrespectful and makes them feel like they don’t matter to the process.
- Know that your best employees are the most in demand, and they can leave at any moment.
Your Company’s Culture Hangs in the Balance
If your company culture is positive, it’s likely one of the key drivers of your success. Transactions inevitably affect culture, and cultural misfits are a primary reason that M&A deals fail. You must work to minimize cultural clashes between the two businesses, and have a clear plan for integration. If your team loses key benefits or has to transition into a less pleasant culture, they may leave. So consider how culture issues can either preserve or undermine morale, and plan accordingly. Devise your communications with the goal of a consistent message and strong culture.
Know the Importance of Post-Closing Integration
The M&A process is long and draining. Closing is just the beginning. Afterward, you’ll still have to bring the companies together to build momentum, address cultural confusion, and steadily improve morale.
Research shows that mergers fail between 70-90 percent of the time. The risk of failure is very real, and you must take it seriously. So save some energy for post-closing integration, and partner with the other company to draft an integration plan that becomes part of daily operations and decisions.
Manage Communications from the Very Beginning
Ultimately, workforce management comes down to excellent communication that fosters trust and builds a strong culture. Four simple tips should guide all of your communications:
- Be proactive about the issues that matter most to employees, such as benefits, working hours, and pay.
- Make your messaging consistent, intentional, and on-brand. A written communication plan can help your communications team plan what to say.
- Know that frequent communications can keep your team on board and reduce the risk of miscommunication. Don’t harm morale with needless secrecy.
- Understand the connection between post-deal communication and long-term profitability. Know also that communication should not just go one-way. Actively solicit input from your team, and adjust your messaging and actions to their input and concerns.
