Organizations being acquired and merged have unique and urgent needs. People are desperate to know what’s coming, how they’ll be affected, and what they can do to protect their careers.
These new pressure points call for a rapid ... shift in priorities.
- Train your people on how to deal with merger issues.
- Make sure employees know what you need from them.
- Move swiftly to protect the organization’s productivity.
- Communicate to manage people’s expectations.
- Take steps immediately to retain key talent.
Why is merger training crucial for your people?
Research involving almost 1,000 senior and middle managers found 90% were psychologically unprepared for the changes in status and organizational structure they would encounter following their mergers.
- Harvard Business Review
If 9 out of 10 managers are short on psychological readiness,
- . . . how might that damage your integration process?
- . . . what impact could it have on employee engagement?
- . . . to what extent will it put your merger at risk?
What’s the cost of lost productivity?
According to a study at Honeywell and other research (Cabrera,Wishard), employees spend two hours per day—roughly 1/4 of the work day—obsessing over the potential impact of their merger rather than performing their work.
Consider the financial drain on a mid-size organization:
Number of Employees | 3,500 |
Average Annual Salary | $40,000 |
Months of Transition | 4 |
Hours of Distraction Per Day | 2 |
Wasted Payroll | $11,666,666 |
When people see obvious slippage in organizational momentum, they often interpret that as evidence that it’s a “bad merger.” Or they assume top management is doing a poor job of handling the situation.
Just as failure feeds on itself, success breeds success. So position your employees to protect, even enhance, productivity levels.
How much damage can turnover do?
Let’s begin by reviewing these troubling statistics—
Half of acquired senior managers leave in the first year after a merger. Three out of four leave within the first three years.
—Human Resource Executive
Target companies lose 21% of their executives each year for at least ten years following an acquisition. This is more than double the turnover experienced in non-merged firms.
- Journal of Business Strategy
Given that the cost of replacing a key employee can run over 100% of a person’s annual salary, re-recruitment training pays for itself many times over if it helps your business retain just a handful of key players that otherwise would have left.
Why is communication so critical?
Research demonstrates that employees provided with realistic merger previews maintain far more stable levels of commitment, satisfaction, trust, and performance than those who receive less open information about the combination.
—Schweiger & Denisi
As soon as a deal is struck, the battle begins for people’s minds. Win that one, and you’re well on your way. Lose that fight, and your merger is far more likely to wind up in the failure statistics.
You should move swiftly and purposefully to shape opinions . . . to set the proper expectations . . . to provide your people the understanding and coaching they need in order to help drive toward merger success.
The M&A transition period is marked by ambiguity, disruption,& change.
Ordinarily that spells trouble. So what’s the best strategy for dealing with this game-changer?
Give your people the powerful training program: Managing Uncertainty in M&A
- Proven and field-tested
- Translated into 24 languages
- Delivered in 50 countries
- Attended by over 30,000 managers and employees
- Rolled out for several of the world’s biggest mergers
Managing Uncertainty in M&A For Leaders
Uncertainty usually triggers costly problems well before the deal is done. If unaddressed, uncertainty can damage productivity, quality, customer service, talent retention, and, ultimately, profitability. Sometimes it even dooms the chance for a successful deal. The workshop protects management’s credibility and the company’s performance during the vulnerable “hang time before integration decisions are finalized.
Topics Addressed
- The critical importance of being a positive role model in the current situation
- The need for preparation and speed
- The major differences between managing uncertainty and leading change
Key Objectives
- Teach how to communicate effectively when there are more questions than answers
- Set the right expectations about the integration process and its inherent complexities
- Coach on how to keep the organization engaged and focused despite distractions
- Provide insights on how to retain key players without overpromising or overpaying
- Instruct on how to build trust and reduce damaging self-protective behaviors
- Shoot down misconceptions and falsehoods about the merger
- Demonstrate how to use PRITCHETT’s Leader Toolkit to tackle pre-close priorities
Book Options
The Employee Guide to Mergers and Acquisitions
Business As UnUsual
The Unfolding
Primary Result
Leaders set the behavioral standard, communicate effectively, and prime the organization for successful change.
Managing Uncertainty in M&A For Employees
When a merger or acquisition is announced, employees often feel powerless and confused. Uncertainty prevails, the trust level drops, and people worry about how the deal might impact them. This workshop helps employees understand what to expect and what to do during the pre-close period.
Topics Addressed
- Phases of a merger
- The major differences between dealing with uncertainty and dealing with change
- Poor Choices versus Smart Choices
- Clarification of priorities
Key Objectives
- Set the right expectations about the integration process and its inherent complexities
- Coach on how to manage yourself instead of trying to manage the circumstances
- Instruct on how to “wait and do” rather than “wait and see” while the integration is being planned
- Demonstrate how to use PRITCHETT’s Employee Toolkit to tackle pre-close priorities
Book Options
The Unfolding
The Employee Guide to Mergers and Acquisitions
Primary Result
Prepares the workforce for merger dynamics and positions employees to make a positive contribution during the transition.
You can’t take the psychological shockwaves out of merger integration. But you certainly can “immunize” managers and employees against much of the stress, just as you can provide guidance on how to contend with the unique challenges of mergers.
And the sooner you do it, the better.