Zen and the Art of Merger Communication

It is the new normal in American business. Acquisitions, mergers and consolidations are a fact of corporate life. Whether you’re a startup or a Fortune 500 firm, the odds of experiencing one of these events are good and getting better. According to accounting giant Deloitte, “Corporate and private equity executives foresee an acceleration of merger and acquisition activity in 2018.”¹

Whatever part you play in the transaction—acquirer or acquired, this is the time for great and clear communication. What are the essential dos and don’ts of merger messaging?

Here are our top 6.

1. What’s your story?

Rather than a recitation of facts and bottom-line financial benefits, craft a story. Part history, part economics lesson and part vision-casting, your story should paint a picture. It should include what brought the parties involved to this place, the most pertinent and impactful numbers and, most importantly, some picture of the future. Everyone—and especially employees—wants you to answer this question: “What’s in it for me?”

Consider your stakeholders. Take the time to prepare a compelling story. Tell it well.

2. Have a plan

The communication plan needs to be formulated well in advance of the actual event—before there is even certainty that it will occur. Create a timeline for communication, with the understanding that there must be flexibility. Formulate an action plan that includes both parties in the transaction. Assign key roles and responsibilities.

Plan to utilize various communication styles and channels. Hold meetings, utilize your website, intranet and printed materials. The multi-channel approach will reach a high percentage of your stakeholders.

3. Equip your front line

Employees will seek information from people they trust and work with every day. As a part of your communication plan, make sure that your front-line managers are kept up to date with the latest information. Treat them as insiders and equip them so they are comfortable with what to say—and, also, what not to say.

4. Prepare for rumors

The news will get out. It almost always does. Determine how you will handle leaks, and who will be the point person. Consider preparing messaging and materials in advance to address rumors quickly when they surface.

5. Answer questions openly

One of the most effective ways to combat rumors is to be as honest and up-front as possible when questions come your way. Anticipate the questions you’re likely to field and create an FAQ. As questions are received from stakeholders, incorporate them into a Q&A document that can be regularly updated. When you receive questions that cannot yet be answered, give your audience a status report or a date when you will know more. Creating a master FAQ will also ensure that language is consistent across executives and managers.

6. Tell the story again . . . and again

Once the merger is official, the need for further communication is over, right? Wrong.

The proposed union may have been ratified, but the success of that union is far from guaranteed. In fact, the crucial blending of systems and culture is still ahead. Much must be accomplished to secure the benefits of this union for customers and employees. Talent and sales may be lost if you do not continue to talk about the progress, the challenges and the reasons for the merger.

Issue regular progress reports after effective date of the union. In these reports, highlight the headway you are making at unifying both systems and cultures. When a glitch occurs—and it will—apologize to both customers and employees. Thank them for their patience, and spell out the steps being taken to correct the problem.

Even after the vote is taken and all the official papers are signed, keep telling your customers and employees why you did what you did. Don’t assume they remember. This persistence in communication will give you the “honeymoon” you need to get your unified organization on an even keel and growing into the future.

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If your business needs help communicating change or even initiating a communication plan, put VistaComm’s expertise to work. Call 844-453-9261 to begin the conversation. And remember, digital communication is immediate and effective, especially in merger situations.

1. Deloitte, The state of the deal: M&A trends 2018, Deloitte.com, https://www2.deloitte.com/us/en/pages/mergers-and-acquisitions/articles/ma-trends-report.html

Learn More Here: Zen and the Art of Merger Communication

Healthy Organizations Actually Solicit Input

Not long ago, many co-op directors and management groups would actually duck member input. Everybody breathed a sigh of relief if the final gavel fell at the annual members meeting without anyone rising to make a comment—especially a complaint. “No news is good news,” was the consensus. “We’re safe for another year.”

I ought to know. I’ve been employed as a member relations director for a local cooperative and I’ve worked in the field of co-op communications for over 40 years. But that’s not how it is anymore.

Co-ops are consolidating at a record pace. The healthy co-ops usually come out on top. These are the ones who regularly take an organizational check of their member-customers—and their employees. They ASK for comments, and they USE the information they get.

VistaComm is privileged to have several of these co-ops as clients.

The CEO of one client, a local agronomy and energy cooperative, regularly solicits customer input at the end of his newsletter article. “My door is always open,” he states.

This client not only maintains an open-door policy, but proactively solicits member input every 3-4 years. Their customer surveys ask telling questions like, “What do we do well?” and tough questions like, “What could we do better?” The co-op sticks its neck out by giving member-owners a voice and promising our “board and management will use the results of our member surveys to guide our decisions.” They’ve been asking for customer input to help direct the future course of the company for the past 12 years.

Not surprisingly, this medium-sized company has flourished among the giants, even in a tough ag economy, as it listened to its members’ advice to provide them exceptional service and innovation.

This company also regularly solicits input (also in the form of a survey) from its employees. Because VistaComm manages the survey assuring complete anonymity, this co-op has been able to get 100% of its employees to participate.

What about you? Could your organization use a health check?

VistaComm can help with:

• Teasers, news articles and cover letters promoting your surveys
• Design and administration of both print and electronic survey instruments
• Third-party follow-up to assure maximum participation
• Tabulation and cross correlation of results in an easy-to-use format

To find out how our services can help you gather the information you need to put your company “back in the pink” contact VistaComm today.

Source Here: Healthy Organizations Actually Solicit Input