Statistics indicate that approximately half of all mergers are successful, but why not the rest? The process starts with detailed analysis and valuation of the acquired organisation(s) and high expectations of increased productivity, share value, profit, and eliminating potentially redundant tasks.

One reason for failure can be that people working in the merged organisations who must implement the planned changes are normally disregarded during the pre-deal stage.

However, once the integration starts people begin to play crucial roles in the execution of the plan. Managers should not underestimate the people issues that might arise during this period.

Communication through the company can create either an effective or discouraging working environment. It is a difficult task to keep people motivated and engage people in the business particularly when those people are at risk of losing their jobs. It may be that individuals least well equipped to contribute in the new organization will be released whilst holding on to the best people. Apparently ‘the best’ are evaluated as having the best fit to the needs of the new organisation.
 

A solution to keep the best in the company is to be honest to the people and remember that we all appreciate frankness. People may not like to discover that their job no longer exists, but they would rather know it up front than to receive limited notice to leave the company. Mergers need good people to accomplish their goals.

Another essential factor is effective leadership and having crystal clear objectives and direction. Not only the general purpose of the new organisation, but 3 month, 6 month and the medium and long term goals of the organisation should be so clear that it is virtually impossible for employees, management and customers to misunderstand them.

Effective communication is essential for companies to perform well and is even more vital for successful mergers. Both internal and external communication is the key to keeping employees on the right track, retaining customers and maintaining organisational stability. So why don’t all organisations communicate effectively?

Internal communication is not a legal obligation. External communication, being a legal requirement, is generally better handled than internal communications.

Communication can be time intensive for senior leaders. During the uncertainty, there might be clear and immediate answers to questions raised by the employees, but it takes a substantial amount of time to communicate this, which managers may be reluctant to spend.

Communication can include tough messages. There are, in general, very hard and sensitive decisions to take during the merger. Managers may be unwilling to be completely open and transparent with employees for fear of employee resistance and productivity loss. However, a lack of communication can create the same, and even worse.

It is difficult to quantify the results of communication. It, therefore, turns out to be more ‘desirable’ than mission-critical. Nevertheless effective communication builds trust and acceptance, and keeps employees focused on the important work. It can mitigate damage caused by the ‘rumor mill’ and relieve anxiety.

Successful communication can inspire faith in and support of the company’s vision and culture. The key element of successful communication is two-way communication. Listening as well as telling enables management to convey business, strategic or tactical decisions and receive important employee input. What can enable effective communication in mergers?

Researching its audience – asking them what they want to know, and how they wish to be communicated with.

Communicating clear and consistent messages.

Considering specific communication for key talent

Getting senior leaders to lead the effort, and model the required behaviors

Training and supporting managers to leverage the power of face to face communication with their employees.

Monitoring communication effectiveness by using listening tactics. Besides the human factors, some management issues can occur during the integration phase, and hence establishing an integration team that is charged with developing plans, projects and tasks to ensure the successful completion of integration is vital. This team should be given the financial and time resources to accomplish this critical step in the change process.

Moreover; identifying obstacles to success will reduce the waste in later stages. Being frank to people and involving them in the brain storming sessions and gathering true and frank feedback from employees can increase the effectiveness of the process. Management should allow staff to express their worries, fears and anxieties about the merger, as well as their ideas, suggestions and possible roles that they may be interested in assuming. This helps people to be motivated and encourage commitment to the process.
 
Furthermore, unifying more than two processes require establishing a standard production or operational process and work methods across the new organisation. If the establishment of the new processes and methods requires some medium or long term actions and investments, then identification of quick wins and an interim process will enable smooth transition from the current to the future processes. If the integration is carried out in various countries, each with their own cultures, marketing environment and products and services, then establishing an integration team in each country’s organisation and developing an integration model to extend to the other sites in the country will facilitate the integration process.

Last but not least; all the quick wins or achievement needs to be shared within the organisation as soon as possible. Celebrating and publicizing those wins to everyone boosts morale and enhances productivity.

In conclusion, mergers are difficult processes that require very good leadership and communication skills, crystal clear objectives, very good planning, show cases and most importantly the best people in the organisations to accomplish a thorough job.

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