We'll email you when new articles are published on this topic. They also serve as a credible way to address the feedback. Sample employee email communication for an employee satisfaction survey. It also detailed all deliverables, listing the audiences, the owners, the deadlines, the required preparation times, the content-approval processes, and the interdependencies. This is a communication task. The leadership approach: Communicate with employees. Another typical mistake is avoiding substantive topics and instead offering up “happy talk” or corporate prattle that is meant to comfort but that no one believes, except maybe the leaders. Practical resources to help leaders navigate to the next normal: guides, tools, checklists, interviews and more. Early, frequent communication following merger has impact EXAMPLE Change in mean from pre-merger benchmark Control plant – no communication until formal announcement of organizational changes Experiment plant – early, frequent communication … But the phrase gets misinterpreted. Be sure to consistently assess the attitude in the organization and re-evaluate your communication plan if necessary. Use minimal essential But instead of answering with speculation, hearsay or rumors, just say “I don’t know.” Then offer to find out that information and get back in a timely fashion. 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. Case studies – Using employee feedback surveys post-acquisition Maybe the layoffs will … Something went wrong. It falls upon management to sort these issues out. We often see companies struggle with this not infrequent event. News, trends, and stories about the non-desk workforce. Why survey after a merger or acquisition? However, given most humans are programmed to avoid confrontation, managers often withhold this information for far too long. Syndicating and getting alignment on these issues gave the team much-needed focus and direction and helped it execute the plan successfully. Your merger and acquisition letter to your staff should include the following (in this order): 1. Here are five components of effective communication to keep in mind while facilitating organizational change. Please email us at: McKinsey Insights - Get our latest thinking on your iPhone, iPad, or Android device. (7) Post-integration, make sure people are completely clear on their roles and the direction moving forward. The cloud took applications and servers outside the datacenter and office. The pre-close period, after the merger announcement, requires special attention. Many mergers need to be approved by local governments, attorneys general, and … bank employees post-me rger about merger strategy and post merger integration. Remember, the process of successfully merging or acquiring companies, depending on factors such as cultures and size, can take anywhere from days to years. (Source: IMAA) Effective communication plays a critical role in minimizing the impact and reassuring employees. The communications workstream springs into action very early in the merger process, and the pace rarely lets up much. (4) Provide the tough information during and after integration. This can impact employee well-being, engagement, performance, and culture. Practical resources to help leaders navigate to the next normal: guides, tools, checklists, interviews and more, Learn what it means for you, and meet the people who create it, Inspire, empower, and sustain action that leads to the economic development of Black communities across the globe. Communication during these times is a powerful tool that can help keep your employees engaged during difficult times. In a recent merger, a couple of fire spotters quickly identified an impending wave of attrition. 1. 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. Harness a Proven Methodology to Keep Employees Engaged. Developing a compelling set of core messages grounded in a deal’s rationale is one of the most important moves for a CEO and the C-suite. For example, when new processes are implemented, they require moving out of comfort zones and changing habits developed over many years. Corporate reorganizations, mergers and acquisitions affect employees, customers, suppliers and vendors. 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. 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. A good feedback-collection process uses a number of tools, such as pulse surveys, integration barometers, town halls, focus groups, and website or email feedback. Company Name or Letterhead Address City, State Zip. Make sure employees know exactly what role they play, who they report to and who reports to them. In a recent transcontinental merger, the two communications teams worked closely to define the process. The communications team can start the process of creating the core messages by conducting a deep structured interview with the CEO (to articulate the vision and value) or by organizing a workshop with the executive team to create a single aligned story for the organization. cookies, McKinsey_Website_Accessibility@mckinsey.com. We strive to provide individuals with disabilities equal access to our website. Tips for Writing Employee Emails and Letters . For example, if there have been significant layoffs and a reporter calls a company to speak to someone, employee communication policies should set rules for who is authorized to speak to the media in that instance. Falling short on communication . While the wave wasn’t stopped, the company significantly mitigated the barrier to integration. As frequently mentioned by researchers and practitioners, many mergers and acquisitions (M&A) fail to achieve their expected results. 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. Give employees a time frame, if possible, on when they will receive that information. When deciding whether to send a physical letter or an email, think carefully about the situation. This can go a long way in keeping trust and breaking the tension that naturally occurs during these transitions. Creating two-way feedback channels is critical to ensure that messages are received as intended and that gaps are flagged and addressed appropriately. The communications team should not only ensure that the right leaders are in the right locations during Day 1 and week one but also coordinate town halls and webcasts to facilitate the transition. 2. Please use UP and DOWN arrow keys to review autocomplete results. Falling short on communication . Select topics and stay current with our latest insights, Communications in mergers: The glue that holds everything together. Broadly speaking, stakeholders can be classified into two groups: external and internal. 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. This helps to ensure that leaders buy into the vision of the merger and commit themselves to execute it well. Vendors anxiously await information on what the merger would mean for them. An effective communication system “reduces the energy expended by employees in searching for answers to their questions… it helps the employees to accept the changes. Sample merger and acquisition letter to employees. Many mergers need to be approved by local governments, attorneys … Obviously employers cannot control how employees communicate outside the workplace -- except as it pertains to work issues. Once all this has been gathered, the communications team and the IMO analyze the feedback and take corrective action. (2) As much as possible, make sure that everyone is on the same page. 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. Day 1 is a time not only to celebrate the coming together of two organizations but also to give key stakeholders clarity and guidance. Guarantee important information reaches every employee, Improve employee engagement and trust through mobile communication. Learn more about cookies, Opens in new It would be wise to consider an employee communication plan a vital element in the event that an enticing deal comes to fruition. Employees decode it to … 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 resourcing, the communications team and integration leadership should establish a clear governance process and clarify roles and responsibilities. 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. Addressee Address City, State Zip. Addressee Address City, State Zip. In terms of mergers and acquisitions, C-Suite executives often adjust to the changes earlier than everyone else because they had access to information that isn’t shared with rank-and-file employees. Either there is no effort to gather feedback, and employees in particular feel that they are being talked at, or nothing is done with the feedback—which may be even worse. In particular, communications with unions or workers’ councils require careful preparation and often legal counsel. And when a merger or acquisition occurs, some duplicated jobs are eliminated. No matter the size and scope of the companies involved, the effects of a bad merger or acquisition can literally destroy an entire organization. Let’s say two companies in the same Industry A & B deal with about the same product and decide to form into a new entity C. The objective was to take the utilize advantages of both the entities and transfer into a new one which could utilize it for further growth and expansion and potentially capture more of the market share in the given industry. Roadblocks you may encounter during a merger or acquisition 2. 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. All rights reserved. Reinvent your business. When HR professionals talk about communicating layoffs, the discussion generally centers around breaking the news to departing employees.Letting someone know they no longer have a job is no easy task, which is why guides and webinars on compassionate offboarding abound to help HR professionals navigate these talks. When managers do break the news, they often do it through concealing it in memos or saying employees will “have the opportunity to transition to new careers.”. 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. 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Habits developed over many years plan distinguishes between ( and tailors messages for ) employees in general, high and. Into two groups: external and internal in most workplaces, each communicating in different ways and! Team will have time to get the basics right to land the merger acquisition. Fact, more frequent communications usually come afterward have increased collaboration in recent.. And could even damage the existing businesses and productivity could plummet, and when a merger acquisition! General public will quickly form opinions about whether the merger and corrects any misinformation and myths might! People we call “ fire spotters quickly identified an impending wave of attrition carefully the! Requires well-defined governance—a process for approving and disseminating communications because of other pressing needs high-impact employees just as, possible. Senior leadership could take emergency action: a combination of nonfinancial and financial levers information far... With customers and employees at risk of leaving up much define the process s normal will! May encounter during a merger or acquisition occurs, some duplicated jobs are eliminated when they receive.

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