Merger change is on the up
A recent article on the Internal Comms Hub, discusses the large-scale Westpac and St. George merger, dominating Australian media reports. They're currently 4th and 5th respectively, in terms of market value among retail banks in the country, and have announced plans for a AU$75 billion marriage.
In the healthcare sector, health fund MBF shareholders are due to vote in agreement for an acquisition by BUPA Australia in a deal worth AU$2.41 billion, creating the largest private healthcare fund in Australia.
These potential mergers follow the recent merger announcement in the US from Delta and Northwest Airlines, and the collapse of the proposed Yahoo!-Microsoft deal at the beginning of May 2008. All potentially major pieces of business, so what does this mean to employees? Read more.
I read the press release from Westpac and it's certainly saying some of the right things for employees. But do we actually know what employees are thinking? What do our employees want from us during a merger?
When we hear the word merger our minds will inevitably turn to some key questions. What does this mean for me? Will I lose my job? What will change for me? All are important questions that need to be answered and, in fact, they must be answered before asking: What does this mean for my team? What does this mean to the way we work? Will the company be rebranded? Will the company's processes change?
"I" before "We"
I've always found it's important to answer the "I" questions before the "we" questions, and answer the "company" questions last. When dealing with the "I" we need to get out and talk to employees face to face, not only to give them information, but also to listen to their concerns.
Let’s face it, there's always loss in change. If it isn't loss of jobs, it's loss of identity and this can be lost even without a re-brand. It's identity that comes into play when we start dealing with the "we" and "company" questions. Remember people choose a company for many reasons, and often it's because they identify with the company at some level.
Tell simple stories
A merger is seen as a change in company identity, even when the company has opted to retain multiple brands. I've always found that telling the story and clearly signposting the way is the most effective method of communicating during this transition. Be simple in telling the story of what opportunities this merger will bring to the business.
You can then use creative communications to ensure employees have a shared understanding of both organizations. This can be acheived through:
- telling stories from both companies;
- providing opportunities for people to work together; and
- sharing good practices, ideas and knowledge.
There's a lot more effort required as the journey towards the merger continues. However, like all change, ensure you focus on giving people the opportunity to ask questions and give feedback right through the process.
I’d love to hear from people about their top tips for merger communication and I will publish them next month.
Further reading
Delivering successful change communication
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