Internal communication during acquisitions
These are a few thoughts on what I think is often missed when communicating to staff during a merger or acquisition.
I’ve now worked in three organisations during acquisitions or mergers, and all three could have had better communication plans. I have also spoken to several senior communication professionals in companies that have been doing the acquiring and that have been acquired, and it amazes me that successful companies, many of which go through acquisitions often, still do such a poor job of communicating what’s happening with their people.
Of course, there are some who do it better than others, and there are issues of market transparency and exposure to consider in many corporate manoeuvres, keeping one of your most important stakeholder groups—your staff—in the dark, has the potential to stall productivity or performance and at a time when you want it at its peak.
There are also (at least) two sides to any take-over story: The company initiating the take-over has a dominant position over a company being acquired, and this will definitely be felt by the staff in both organisations. Even in a “merger of equals” when both parties agree on equally beneficial terms, there could be a perception of “winning” or “losing” in the minds of the staff.
Here are a few things that I think should be part of an internal communication plan for a merger or acquisition period:
Will I still have a job?
Probably the number one question in everyone’s mind as soon as they hear about an acquisition, especially within the company being acquired. If forced redundancies are part of the plan, be honest about it so people have time to process this news. Some people may welcome the news if they’ve been looking for new opportunities anyway. And please, don’t call it “right sizing the team” or “working towards optimal staff numbers” or any of those other weasel words. Just say redundancies. Everyone knows what that means.
Why?
Boards and managing directors will have been thinking long and hard about this question, though in a very different context. Why acquire this company? What benefits will it bring to the bottom line for our place in the market or in cost savings? Will shareholders on both sides support this?
For internal communication, we need to answer the why question with reference to these big picture rationales, but within the context of the teams and individuals it affects: A bigger market means more jobs; more resources means we can work smarter or use better tools; acquiring a different business means more opportunities to learn different skills; etc.
Will this change what I do or how I work?
This is usually a tough one to answer up-front in the early days of a change, but addressing it early lets people know that you’ve thought about it. Even if you’re answer is simply, we don’t yet know how things will change, but we’re going to keep you informed, that’s better than nothing. As long as you actually do keep everyone informed of course.
What opportunities will come out of this?
The best way to keep things positive on both sides of a merger or acquisition is to talk about the opportunities that may arise. Opportunities to transfer, learn new skills, work with larger (or smaller) teams, additional benefits or inclusions, more travel, less travel, etc.
When will things change?
Dates and timelines are important. At the top-level, things will be focused on share trades and dollars in bank accounts. This won’t mean much to people at the coal-face though. When will the name of the company change? When will my boss, or office, or parking space change? Give an official date by all means, but make sure word filters down about key dates in the process so people can plan and adapt.
As with all communication, the important thing is the audience. Remember who you are talking to, what their concerns and interests are likely to be, and the sort of questions you would ask if you were in their place.
