What comes next after the announcement of a merger, acquisition or other major business change?

Execution of strategy, which should include a programme of communication to all staff, is key to driving or improving performance and profitability after a major change, writes Shirley Barnes, Client Relationship Director, Dinamiks Ltd

The outsourcing industry is still young and dynamic and its players subject to swings in fortune as well as to merger or acquisition. HR may lag other departments in importance and professionalism and, if so, will need an overhaul or a refocus in order to help the business meet significant challenges.

HR can help the CEO at all stages of an execution programme and with the strategy itself, particularly if the HR manager sits on the board or is close to it, or if an HR director has been appointed. The execution must be seen by staff to be driven or overseen by the CEO; HR can help drive this visibility via good communication with staff.

At the heart of every successful execution of a strategy is a clear plan of communication and strong leadership from the top. Most executions fail or disappoint because of failures in these areas.

The CEO, often in conjunction with the CFO and other board members, should plan the vision, strategy, goals and values of the post-change company. Objectives need to be set and, importantly, tracked and evaluated as the programme of change, and communication to staff, is carried out.

Each step of the programme, especially the vision, goals and company values, should be visible to all staff at all times. This is important because employees, managers included, will want to know on a regular basis what the steps are and what is expected of them and the objectives they are working towards.

Communication at a glance

Methods of communication can include (I) e-communications such as use of an intranet [company website, perhaps with a Face book-style forum, and live and archived you tube-style videos of presentations/explanations by the CEO], email notifications and e-newsletters (ii) traditional communication tools such as posters on the wall in meeting/refreshment areas, as well as paper newsletters (iii) face to face and/or group meetings with managers, allowing consultation with all levels of staff, and problems or issues arising from the merger to be aired and discussed openly. They can also be aired and discussed in a company online forum - see (I) above.

The control and eradication of ambiguity and rumor – and achievement of other objectives - can be achieved by good communications, aided by online tools that track business and performance goals and ensure they are met. That way, a tight grip can be maintained by HR on the direction the company is going and on the performance of everybody in it, the CEO included, where appropriate.

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