During the merger/acquisition process, “Who is in charge?”

Typically, the first question staff will have will be who is in charge? The common assumption is that if we or our management is or remains in charge, we are okay. In some merger and acquisitions, the winner is clear. In others, the organization attempts to blend the management staffs. Further, in some mergers and acquisitions, many areas of the organizations are untouched by the action.

And, in many actions, the first organization announced is not the final organization. Many factors operate to force subsequent organizations-some managers will resign from the combined organizations and other managers will be asked to leave; product or market consolidations can force reductions in force; or regulators may force additional actions such as selling off business units.

Integration strategies. There is no right way to plan a consolidation. In a 1998 survey from Hewitt Associates on the HR implications of merger, acquisition and joint venture transactions, several integration strategies were identified. The strategy selected for business combinations affects many aspects of the implementation process. Organizational integration strategies, according to Hewitt, may be viewed along a continuum. Most companies fall somewhere between two extremes. The first is a portfolio approach in which the relationship between the acquiring organization and the acquired entity is focused on meeting financial goals, while maintaining separate structures. The companies have minimal integration of business units, business culture or HR programs. Companies utilizing this approach often plan frequent divestitures as well as acquisitions. At the other extreme, one new company is created with a common culture and HR programs. In between lies a middle-of the road managed subsidiary strategy.

Downsizings. In the event there will be layoffs or planned downsizings, these actions must be planned in accordance with the law and with good business practices. In addition to those being terminated, attention should be focused on survivors.

Consolidation. Tasks to consolidate the organizations include the following:

• No matter how complex, one of the first tasks is to announce and describe the organization including the location of corporate headquarters.

• Every manager must be advised of his or her role in the combined organization. In turn, each manager should advise his or her staff.

• Organizational charts should be prepared, dated and distributed as soon as possible to all stakeholders. These charts, initially, do not have to be complete in every detail. However, if the charts are not complete, be sure to address that fact and explain that more detail will be forthcoming.

• All employee and external questions should be anticipated. Where possible, a timetable addressing when pending decisions will be finalized and publicized should be announced.

Corporate culture. In a merger or acquisition, care must be taken to combine the cultures of each of the organizations. That process cannot begin without an objective assessment of the culture, including its values, ethics, leadership and management style. Work ethic, corporate manners and dress are also factors that must be analyzed and integrated.

Care with contact. The acquiring organization must stress to every individual who will contact the acquired organization to exercise caution. Much harm can be done by improper or casual comments made by representatives of the acquiring organization. Select representatives carefully and advise all representatives:

• Not to answer questions beyond his or her authority. For example, do not explain the health benefits currently in place at the acquiring company unless that is the reason for the visit to the acquired company. Providing casual background information can be interpreted improperly.

• Avoid the appearance as well as the substance of us and them. Never advise anyone how we do it, or that's not the way we do it.

• Do not let body language undercut verbal messages.

• Stress the importance of staying on task and not being distracted by associates of the acquired company.

• Be careful with casual conversation, especially in non-business settings such as dinner.

• Be warm, non-confrontational and friendly.

• Ask questions and take notes. Verify information that might be negative or controversial before forming an opinion as to its validity. Do not ask for opinions and stress the need for facts. Do not provide personal opinions or judgments.

• Remain very positive and upbeat.

Act quickly. As complex as a merger or acquisition is, all parties must have a sense of urgency to complete their tasks quickly. When tasks are delayed or are not perceived as timely by employees, the odds of the merger or acquisition being negatively harmed are increased. There may be a sense that the hard work has been done when the deal is completed. However, in fact, the hard work is just beginning.