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Merger1
Merger1
Merger1
Merger1
Merger1
Merger1
Merger1
Merger1
Merger1
Merger1
Merger1
Merger1
Merger1
Merger1
Merger1
Merger1
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Merger1
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Merger1

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The attached presentation offers a guide to communication during a merger or acquisition.

The attached presentation offers a guide to communication during a merger or acquisition.

Published in: Business, Education
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  • 1. Mergers and Acquisitions <ul><li>The term “Merger” describes the highest form of strategic </li></ul><ul><li>partnership, in which two or more legally independent </li></ul><ul><li>organizations merge together to form one organization- both </li></ul><ul><li>legally and in economic terms </li></ul>What’s Communication got to do with it?
  • 2. The Unfolding of a Merger <ul><li>Assessment and Readiness </li></ul><ul><li>Negotiation </li></ul><ul><li>Immediate Pre – merger </li></ul><ul><li>Legal Merger </li></ul><ul><li>Immediate Post Merger </li></ul><ul><li>Integration </li></ul>
  • 3. Stake Holder Group Problems and Resistances Board Members/ Directors Fear of a dominating partner, Hostility of CEO’s of partners Geographic issues/Financial issues CEO/ Senior managers Losing game? Loss of responsibilities and tasks Unclear organizational structure Employees Lack of understanding of need of merger, Job security, Compensation, Role & Location change, uncertain future Customers Brand issues/management of ‘my’ account, price/ delivery/ Product/ quality issues/ technology Shareholders Returns, Dividend payments, Altering ‘my’ Shareholding Pattern Government /Financial institutions Revenue/ Tax/ Governance/ Regulatory issues Vendors/ Suppliers Loss of business, future direction Stakeholder Perceptions
  • 4. Develop the Integration strategy Integrate Systems Operation Keep managing the institution CEO takes leadership position Deal with “What about me?” Ongoing through merger Establish The Power Structure People & Communication Key Issues in Integration
  • 5. People – What goes on in their minds Maslow’s Heirarchical Needs Self Actualization Self fulfillment Self Esteem, Feeling good, Pride, Confidence Love & Belonging Safety : Security from attack Hunger and Thirst What Is our Strategy How are we going to win? What will my job be? My role in the Organization. Who are the people I have to spend the rest of my life with? Will I have a job? Will there be layouts?
  • 6. Merger Communication <ul><ul><li>A strategic Communication Game Plan </li></ul></ul><ul><ul><li>Managing the expectation of all Stakeholders </li></ul></ul><ul><ul><li>Positioning the perception of the venture </li></ul></ul><ul><ul><li>Rationale for synergies and strategies </li></ul></ul><ul><ul><li>Key messages – general and specific </li></ul></ul><ul><ul><li>Managing brand communication </li></ul></ul>
  • 7. The Communication Strategy <ul><ul><li>Start early </li></ul></ul><ul><ul><li>Anticipate employee questions and concerns </li></ul></ul><ul><ul><li>Use all the communication tools </li></ul></ul><ul><ul><li>Set communication expectations </li></ul></ul><ul><ul><li>Over communicate </li></ul></ul><ul><ul><li>Communicate the business case </li></ul></ul>
  • 8. Internal Communication <ul><li>Key Components </li></ul><ul><li>Move fast , but to a well thought – out plan </li></ul><ul><li>Do not over promise </li></ul><ul><li>Broadcast information to all employees </li></ul><ul><li>Keep employees focused on customers </li></ul><ul><li>Identify change agents </li></ul><ul><li>Create an acquisition communication team </li></ul><ul><li>Create help desks/ helpline/ help emails </li></ul><ul><li>Do a comprehensive Q & A for employees </li></ul>
  • 9. The Business case – What employees want to know <ul><li>What is the New Company? </li></ul><ul><ul><li>History, Vision, Customers, Achievements, Structures etc. </li></ul></ul><ul><li>Who is the leadership? </li></ul><ul><li>Why the acquisition? </li></ul><ul><li>What is our outlook as part of the New Company? </li></ul><ul><li>How does it fit into long term goals? </li></ul><ul><li>What are the advantages for customers and shareholders? </li></ul><ul><li>What is in it for me? </li></ul>Communicating the Business Case
  • 10. Core Messages <ul><li>Customers </li></ul><ul><li>Regulators </li></ul><ul><li>Government </li></ul><ul><li>Employees </li></ul><ul><li>Shareholders </li></ul><ul><li>Vendors/ Suppliers </li></ul>
  • 11. Principles of Communications <ul><li>Treat ALL impacted staff with dignity </li></ul><ul><li>Timing of any announcement to take into account the needs of all stakeholders </li></ul><ul><li>Share all information known that is relevant </li></ul><ul><li>Ensure consistency of message in both organizations </li></ul><ul><li>Available to listen i.e. Strong feedback loops </li></ul><ul><li>Empathetic, understand the people implications </li></ul><ul><li>Use line managers a key communications whenever possible after launch </li></ul><ul><li>Supporting through provision clear guidelines </li></ul><ul><li>Flexible to their needs e.g. different cultural context </li></ul><ul><li>A clear agreed timetable of events and responsibilities </li></ul><ul><li>Face to face communication wherever possible </li></ul>
  • 12. Communication Content Communication Content
  • 13. Mergers and Corporate Culture <ul><li>How is Corporate Culture determined? </li></ul><ul><li>History </li></ul><ul><li>Management styles </li></ul><ul><li>Values </li></ul><ul><li>Beliefs </li></ul><ul><li>Systems / Structure </li></ul><ul><li>The way we do things here </li></ul>
  • 14. Merger and Culture <ul><li>Cultural differences </li></ul><ul><ul><li>Cross – national </li></ul></ul><ul><ul><li>Cross – organization </li></ul></ul><ul><ul><li>Cross – functional </li></ul></ul><ul><li>The dynamics of culture conflict </li></ul><ul><ul><li>Realization of differences </li></ul></ul><ul><ul><li>Accent on highlighting differences </li></ul></ul><ul><ul><li>Mutual stereotyping and blame game </li></ul></ul><ul><ul><li>Battle for cultural dominance </li></ul></ul>
  • 15. Merger and Culture- Identify Cultural Difference Check List Characteristics Of culture Perception of other organization True False Other Perception True False Democratic Bureaucratic Autocratic People driven Team orienting Transparent/Open Long term driven
  • 16. The Integration <ul><li>Planning for success </li></ul><ul><li>Guiding Principles of Communication </li></ul><ul><li>The Communication team </li></ul><ul><li>What people want to know </li></ul><ul><li>Tools to support effective communication </li></ul><ul><ul><li>FAQ’s </li></ul></ul><ul><ul><li>Process for staff to submit quarters </li></ul></ul><ul><ul><li>Feedback mechanism </li></ul></ul><ul><ul><li>Merger newsletter </li></ul></ul><ul><li>Walking the Talk </li></ul>
  • 17. Important Lessons <ul><li>A merger is a planned crisis </li></ul><ul><li>Culture can be used as a management tool </li></ul><ul><li>People are messengers and messages </li></ul><ul><li>Many leaders, many projects, many issues </li></ul><ul><li>Brand and customers must be paramount </li></ul><ul><li>Get help </li></ul>
  • 18. Key messages The sale is a good deal for both companies We can realise the full potential of the business making us No. 1 or 2 in the region The price we paid is right Shareholder value Focus Narrower deeper options Narrower geographic focus New economy New opportunity in Asia - Internally We will be the leading company [insert area] and the region There will be great opportunities as we develop the new business Until then it’s business as usual There will be changes – but they will be carefully considered by the new management We will communicate with you regularly, openly and honesty Standard Chartered Grindlays integration update 19 May 2000
  • 19. Letter from the CEO What is happening – background information Why it is happening – context for change When is it happening – high level time-line of events What this will mean to me - Overview of HR processes, options etc Who is the other guy? (Brief intro, cultural information and the map showing fit) What’s next? - What does it mean for my customers? – Integration process How do I find out more? – key contacts, Internet addresses Questions and Answers Managing Change Counselling contact points and service Communication Content Standard Chartered Grindlays integration update 19 May 2000
  • 20. Questions and Answers Will my job be safe? answer How will the best people for the job be determined? answer When will I know about my role? answer Will my reporting lines change? answer Is there going to be an opportunity to take voluntary redundancy? answer Will the branch where I work remain open? answer How will it be decided which branches remain? answer If my branch is closed will I have to move to another location? answer Will we retain our name? answer Will the merger impact my benefits under the of pension scheme? answer I have a loan– How will it be treated after the merger? answer Standard Chartered Grindlays integration update 19 May 2000

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