Navigating the Chaos of M & A
By Daniel Clark
In 2021 Credit Union leadership began an increase in Merger and Acquisition activity. 2022 appears to continue that trend and 2023 is expected to accelerate the activity. While this certainly provides Credit Union membership with several benefits, for management and staff it may well introduce change, stress and in come instances, actual Chaos.
No one can remove all of the stress and certainly not mitigate the change, but there are a few simple steps that management can take to control the Merger and Acquisition Chaos. The following 5 considerations, when implemented, can make the entire M&A experience positive.
- Develop and implement a communication plan that ensures all employees are kept abreast of key developments, impact to processes and staff, and the ultimate rewards that each individual will receive because of the merger or acquisition.
- Ensure transparency in the messaging of the merger or acquisition. Much of employees stress is generated by a concern for jobs, positions and sustainability. It is important to be transparent in the goals and results of the merger or acquisition.
- Have a detailed post merger plan. Asides from the technical aspects of impacts to processes, organization and staffing, the post merger plan should include value aspects of the merger. Value aspects could include, broader geographic reach, increased products for members, job security, and sustainability for the organization.
- If there will be job consolidations or job loss, ensure that communication is transparent, plans are designed to protect the value of the staff affected and that members know that services will not be negatively impacted.
- Provide timely progress updates. Regardless of “good” news or “bad” news, staff needs to know what is happening. Communication to members is different and should be handled differently but also be as transparent and provided as often as possible.
A merger or acquisition will be a stressful time for everyone. The easier we can make it the better for everyone.
Copyright 2021 by Z-Horse