Michael's M&A Playbook: 5 Tips for Successful Change Management
One thing is for sure in the post-merger phase of a merger and acquisition process: There will be change. The better we manage those changes, the more successful the post-merger integration will be. From many studies, we know that change, in general, is for many people difficult, but there are methods that we can use to make it easier. Here are a few tips that I learned during my M&A transactions:
Tips For Successful Change Management
Make it clear why change is necessary: People want to understand why the company wants a change. Explain why the integration of tools will make it easier to work together, why we need to discuss the approach for how we approach our clients, or why the alignment of HR policies will result in a common culture. Whenever possible, support your idea with facts and evidence. The clearer you communicate why the change is beneficial and will result in profitable growth, the more people will support it.
Use different communication channels and talk with people: Some prefer social media, some email, and others like to go to a website on your Intranet to learn about the planned changes. Use different communication channels and adjust the message to different needs. Whatever strategy you use, the most effective approach is to talk with people. Organize presentations, Q&A sessions, workshops, and other meetings. Do not overwhelm your employees with required attendance but give them a chance to ask questions, voice concerns, and give feedback.
Focus on opportunities: There are always opportunities in life, but many tend to highlight problems and issues more. Think about your daily news show on TV. How often do you hear good news? Encourage people by highlighting the opportunities that the company creates with the change.
Find change agents and use the concept of marginals: Some people are more open to change than others; they even embrace it. Those change agents play a crucial role in successful change management. Ideally, they are at the margin of social groups, meaning they jump between social groups in your company. They are usually not the central person in one group, but they know people in different groups. Whether they focus on developing or implementing change ideas, those "marginals" are your best people for spreading the news and creating a positive attitude toward change.
Build teams with people from different companies: The most common mistake I have seen in the post-integration phase is that the acquirer defines everything by themself and does not include people from the company that was purchased. This top-down communication creates many issues in the integration. The more you mix your teams and have people from different companies, the easier change is.
Successful Integration with Strong Change Management
Change management is a crucial element in the integration of an acquired company. Highlight the reasons for the change, include people from different areas and companies, and focus on the opportunities. You will not only make the integration successful, but you will also have created an approach that works in the future when you need to implement other changes.
