How to effectively market your company
With a shift in demographics and an improving economy, deal flow is on the rise. In 2014, there were more than 40,000 deals, the New York Times reported early this year. However, this refreshed focus on corporate and organizational growth does not come without pain. According to the Deloitte “Integration Report of 2015,” nine out of 10 corporate respondents reported not achieving ROI they'd projected before a merger. A separate report by Deloitte, “M&A Trends Report 2015,” 28% of those involved in merger or acquisition activity felt the integration aspect was unsuccessful or neutral.
Companies looking to grow may adopt various strategies and, still, there is one common necessity: communication. Effective communication is the key to successful early adoption of any major change. “The faster an employee's inculcation to the corporate culture, the faster the company is able to grow,” says private equity specialist Bob Gould, senior vice president and principal at Spinnaker Trust.
To provide for a smoother integration, consider the following best practices.
• Tell it like it is: One of the most important objectives is getting the deal described right. No fluff, no fancy explanations, just simple, plain English. Know in advance who will be the winners and losers; understanding the losses will help tailor communication to those affected. Have any new leadership determined up front to avoid exacerbating insecurities and inadvertently setting up a competition that forces employees to take sides, further delaying the integration.
• Be concrete about the future and what success looks like: “We will be up and running on Monday morning at 9 a.m. as though nothing has changed with Jane Smith at the helm. Our goal is to expand the widget division in the next two years, and increase the workforce by 5%.” Once those involved hear the end game, it is a matter of alignment and getting 80% on board with the vision and the leadership; there will always be that 20% who will never be on board.
• Tell as much as you know as early and often as possible: Identify your audiences, both internal and external. Hone your key messages on what is happening presently and what can be expected. Set a time and delivery schedule as to who is going to know what, when and through which channel. Don't assume prior knowledge of the deal. The project team may have been working on it for months, maybe even years. Give time for everyone to catch up and know what the team knows.
• Provide a feedback loop: Set up a system to serve as the clearing house for questions and information, as well as assign a leader. Employees want to know how they can help. We all want to be part of a winning team.
• Pay attention to the little things closest to the employee and/or customer: Parking, titles, employee benefits and office spaces are all areas of contention that can disrupt the transition. I have lost count of how many times parking was at the top of the list of concerns.
• Honor best practices, on both sides: Adopting a “we've always done it this way” attitude is not an integration or preservation strategy. Both sides of the deal have strengths and best practices to honor and incorporate. Identify select team members from both sides to identify and communicate input.
• Have a “Do not do” list: Avoid the urge to soften the blow by slowly releasing the news rises to the top of the “Do not do” list when working with large-scale change and communication. According to William Bridges, author of “Managing Transitions,” “It is better to introduce change in one big coherent package.” News today travels around the globe in hours, sometimes minutes. The faster accurate information is shared, the less likely rumors will fill the information gap.
Research shows that key industries are experiencing shake-ups and will continue to do so well into 2015. With the rising costs of technology and compliance with legal and regulatory changes, we should expect to see more M&A activity and thus, increased demands for effective communication and integration strategy.
Linda Varrell, president of Broadreach Public Relations in Portland, can be reached at lindav@broadreach.com.
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