The ever-widening world of today’s business is driven by a quickening and erratic heartbeat. Markets call for warp-speed ROI. Technology dares us to master it. Customers expect us to solve tomorrow’s problems, yesterday. It’s an environment that often causes companies to consider a merger or acquisition as a means of building the scale needed to move forward at this pace.
Whether it’s a marriage between global corporations or local companies, thoughtful communications are essential in a successful merger or acquisition. I’ve yet to meet anyone who does not agree with this truth. The trick is in understanding that external brand communication is but a part of effective communications in this scenario.
Now before you put a wet washcloth on this brand marketer’s head, let me assure you I stake this claim from a very real place. It’s based on first-hand experiences I’ve had helping clients navigate the murky waters of merging organizations, cultures and brands.
With that, I’d like to offer six steps in support of successful M&A communications.
Step 1: Align with your vision
Sad, but true: All too often leaders fail to articulate why the M&A activity is important to their organization’s vision. If staff is engaged in the company’s vision and can understand exactly how the merger or acquisition impacts their role in that vision, good things are bound to happen. If employees can’t make this connection, the door to uncertainty is wide open.
Step 2: Align with your strategic plan
Leaders must effectively express how the M&A activity is tied to the company’s existing or evolving strategic plan. Allowing the plan to serve as a part of the communications framework lends context to the decisions that are being made around the merger or acquisition. For example, leaders must be very clear about setting new performance expectations for the combined organization, as per the strategic plan.
Step 3: Align with your culture
This is perhaps the most important consideration. Understanding the culture of both organizations and ensuring they have similar values is critical. That doesn't mean comparing the language on your mission, vision and values posters. It means taking very deliberate steps to study the psychological behaviors that drive each company, articulate real common ground and develop communications and engagement strategies that bring people together.
Step 4: Align your operational systems
Too often, companies focus on announcing the merger as quickly as possible, before taking the time to have internal conversations about how the evolved organization will operate. While it will never be possible to have all functional decisions in place before the announcement, it’s important that there be a baseline understanding of how and where operational shifts are going to take place. Chief among these concerns are the human systems that define the workplace, from reporting structures and compensation to changing job descriptions and performance expectations.
Step 5: Align your sales forces
This may be No. 2 behind culture if yours is a sales-driven organization. Bringing together different sales teams with different sales styles and philosophies is hard enough; motivating them to meet newly formed sales goals in a new environment is another thing altogether. Leadership must engage with the sales force in open, honest and consistent communications, reinforcing any newly formed corporate expectations and providing the resources needed for the combined sales force to succeed.
Step 6: Align your brand
When the impact of the merger or acquisition has been clearly shared throughout the organization — and a new sense of direction is in place — it is then time to look at refining the brand externally. The due diligence undertaken in steps 1–5 will directly inform that evolution, creating a surefooted path for a brand that is better positioned to connect customers and constituents to actions that support the organization’s strategic objectives.
The moral of this M&A story? Take the time to focus on communications that align internal systems between merging organizations before attempting to rebrand them externally. Your staff, customers and shareholders will thank you.