A merger or an acquisition is always a big change. Planning of the integration and the change management methods and actions should be considered already in the negotiation phase. In this article, the starting point is the merging of two companies into a unified entity.
What change management methods to use in a merger or acquisition?
A merger and the following integration phase have many challenges to consider on the way to success. If we look at the human perspective of the deal, leaving the staff unattended and unheard can lead to interpretations of what is happening.
Engaging the staff becomes easier when the differences and similarities of the corporate cultures and ways of working are taken into consideration when planning and implementing the integration. Important factors for success are careful change and current state analyses and involving the personnel in the process.
Identifying the key people and smaller stakeholder groups is one of the first change management tasks for both the business and the integration success. It is important to understand who are needed for carrying out the change and who should focus on achieving the current goals. The most significant stakeholder groups are usually the management, the supervisors and the integration team. By ensuring them sufficient information and coaching them in change management, we are on the way to both objectives.
In the initial phase, open and regular communication should focus on the goals and vision of the deal and the compatibility of the companies. A well-worded change story can be a helpful tool for this. It is also important to tell what the change means from the perspective of an individual: what changes and what does not. This helps people to accept the reasons for the deal, to grasp their own role in the change and to find motivation for the upcoming merger journey.
Bringing the staff promptly together, recognising cultural differences and similarities, and presenting the essential elements of the other company’s operations lay the foundation for establishing a shared culture.
Leading the integration with data helps to identify risks
Regular surveys provide real-time and reliable information on the staff’s motivation, enthusiasm and level of understanding. Visibility to the different phases of the change can be brought by using, for example, the Celkee Insight® perception measurement tool. It is worth spending time on the careful analysis of the results, to get an idea of which staff groups are doing well in the change and which have challenges. The resources, actions and change communication can be targeted based on the obtained information to where the support is needed.
Take your time with integrating people, cultures and practices
Clear roles, right actions and risk identification secure the return on investment. During the ‘hundred-day plan’ associated with integrations, many technical issues, such as payroll, can be implemented, but the adaptation and merging of people and cultures can take a long time. Be prepared to adjust to the changes that occur along the way and approach the issue with perseverance. When the us and them talk becomes we talk and the old times are not longed for, we are very close to the finish line.
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