ep Eastbury Partnership
 home
 partners
 clients
 library
 contact
home partners clients library contact


Internal communications during mergers & acquisitions: a checklist

Mergers and acquisitions are about more than cost cutting. They are also about exploiting the synergies between two organisations. This bullet-point framework for internal communications is aimed at achieving buy-in and engagement from staff on both sides.

Defining the process

For communications purposes, five main phases can be identified for any merger or acquisition:
- Planning.
- Announcement.
- Completion.
- Integration.
- Transformation.

A sixth phase - measurement and review - could be added. However, measurement and review should be continuous, built into the process of communication itself.

Planning

Understand the background
- Review past experience.
- Understand the cultures of both organisations:
  • Use existing employee research.
  • Conduct focus groups involving staff who have worked for both organisations.
  • Conduct content analysis of internal and external communications.
- Map stakeholder relationships for both organisations to inform communications planning and to enable:
  • Message targeting.
  • Accurate distribution lists.
- Stocktake resources and capabilities of communications departments in both organisations, including:
  • Staff: numbers, skills and experience.
  • Strategies: messages, budgets, audiences, calendars etc.
- Audit internal communications channels in both organisations, preferably by creating a channel, message, audience matrix (fast, slow, interactive, electronic, push, pull etc).

Be clear about the process...
- Include representatives from communications amongst the key players who know what is going on from an early stage.
- Draw up 24-hour contact lists of key staff in both organisations.
- Ensure there is a common internal/external communications team.
- Confirm approval processes:
  • Try to minimise the time and effort needed to gain approvals.
  • Make sure the necessary people will be available at the right time.

...and the approach

- Clarify the strategic messages - especially concerning rationale and benefits.
- Plan the merger/acquisition announcement, including risk analysis and contingency plans. This working document should outline aims, messages, channels, audiences, timescales, responsibilities, approval processes etc. Ensure:
  • Adherence to Stock Exchange rules, if relevant.
  • Consistent messages to all stakeholders, making use of face-to-face communications wherever practical and appropriate.
  • The rationale, benefits and implications for staff of the merger/acquisition and the timescale for future decisions and communications are made clear. Wherever possible, minimise uncertainty.
- Plan communications for Completion, Integration and Transformation. In these phases the objectives of the communications are to deliver the business strategy behind the merger or acquisition. As a result, the role of communications in influencing attitudes and behaviour - in addition to providing clear and accurate information - comes to the fore. A number of issues now need to be given more weight, e.g.:
  • Channel/audience/message matrix that maximises use of face-to-face communications.
  • Arrangements for feedback/dialogue.
  • Establishment of key performance indicators.
  • Research and measurement arrangements.
  • Desired attitudes and behaviour.

Announcement
- Implement announcement plan, ensuring 100% coverage at all locations.
- Test that the messages got through.
- Provide managers with background materials and Qs&As on the rationale for the merger and how the integration will work..
- Develop a single, new brand to deliver completion & integration news to both organisations.
  • Liaise with the new communications people to plan for delivering sensitive news (e.g. job losses):
  • Ensure line managers have the necessary guidelines.
  • Provide line managers with background briefing packs (presentations, Qs&As etc.).
- Work with HR and external communications to develop key messages.
- Gather informal feedback on employee views.

Completion
- Work with IT to ensure electronic communication channels are opened as soon as possible:
  • Establish fast news channel (e.g. email) for decisions, appointments etc.
- Co-locate the communications departments of both organisations, preferably close to the main decision-takers.
- Establish the new communications organisation as soon as possible.
- Plan internal communications strategy for the new entity, including crisis communications.
- Get communications representatives on to the integration teams.
- Forge relationships with the new HR team.
- Communicate the identity, purpose, vision and values of the new entity:
  • High visibility of senior management commitment.
  • Interactive discussions.
  • What staff need to do now.
  • Consistency with external communications.
  • Play back third-party coverage.
  • Measure understanding and buy-in.

Integration
- Implement communications plan, e.g.:
  • Integrate communications channels.
  • Put 'listening' processes in place - tel/fax hotlines; Q&A sessions etc.
- Work with HR to answer 'what's going to happen to me?' questions.
- Make sure line managers have the skills and tools to be front-line communicators.
- Continue to communicate the identity, purpose, vision and values. Use them to inform 'regular' communications.
- Audit communications to ensure information on integration is getting to the frontline staff smoothly.
- Conduct research to monitor attitudes and behaviour. Re-assess transformation communications plan in the light of the results.

Transformation

- Implement the transformation communications plan, e.g.:
  • Visible leadership.
  • Knowledge of new environment.
  • Motivation and commitment.
  • Continue building buy-in to purpose, vision and values.
  • Identify gaps between existing attitudes and behaviours and desired attitudes and behaviours.
  • Focus messages on these gaps.
  • Get senior management in different parts of the business to articulate desired behaviours and then offer processes and tools to line managers to help them achieve this with their teams.
  • Exchange best practice.
  • Publicise case studies that show change happening and bringing benefits.
  • Identify and publicise role models and heroes.
- Develop synergies:
  • Show all parts of the new business.
  • Develop fora for networking.
  • Develop common language.
  • Develop common ways of working.
- Conduct regular research on attitudes and behaviour and modify communications plan as appropriate.