Building the team during a merger

Graeme Hobbs, director at chartered accountancy firm Titcheners, looks closely at the team building and staff motivation challenges faced when business go through M&A activity.

In 2006, business growth through mergers and acquisitions (M&A) hit record levels. It might seem obvious that building the new team should be a primary goal during this crucial time, but it’s surprising how many businesses don’t recognise this.

It’s inevitable that during a merger or acquisition, the pending changes will make some members of staff feel unsettled. To overcome this early on, interviews should take place with all employees from both the acquiring and acquired company. This process helps to identify some crucial issues: What are their concerns? Where do they want to fit in the new team? What is their current job role and where do they want to be in five years time? What do they want from their future at the company? Following the interviews, all feedback must be communicated to the board so that it can iron out key concerns before the deal is complete. M&A activity gives HR the opportunity to change the direction of people’s careers, and should be used to motivate them to want to be part of the new team.

There also needs to be a frequent flow of communication to employees, either via one-to-one consultations or memos, with the progress of the acquisition. This will ensure a sense of comfort, reassuring staff of their place within the team. If this isn’t done then you run the risk of losing staff because of low morale and, inevitably, clients through dissatisfaction.

Titcheners has made a number of acquisitions since 2002 and from our experience I would suggest that it’s a good idea to get the new team together in the final stages of the acquisition so they can meet each other on neutral ground. This will give them a chance to gel with their new colleagues. Team building sessions, even if this is a meal or a drink at the local pub, can be an excellent opportunity to communicate the new vision to everyone and provide a forum for the chairman to welcome and motivate people. This gains buy-in for the new culture and encouraging a sense of pride in the new business.

Staff morale plays an important part in business success at all times but is fundamental during a merger or acquisition. If internal communications are managed effectively at this crucial time in the development of a business, you will be able to create a sense of pride, culture and responsibility in all staff for the new company.