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Leaders, managers and employees who demonstrate these competencies are rewarded for their success in contributing to the transformation process. Finally, the time spent communicating messages about the merger or transformation to employees should not be underestimated. For example, to build trust between management and employees, Deloitte & Touche recommends that employees should first be informed about merger and transformation-related issues. Rather than obtaining information from sources outside the organization, this pre-released information gives employees the courtesy of being informed first and then the opportunity to ask questions or raise concerns with leaders. For example, to ensure that the message was consistent in tone and content as part of its communications strategy, Hewlett-Packard had its senior executives deliver written talking points to various work sites in face-to-face, interactive meetings with groups of employees to discuss expected topics. Changes that will occur due to the merger. For our example, we will get the Data Scraper Extraction Tools from a fake e-commerce site recommended by Webscrapper. Employees may find that some of their old leadership is still present in the new company and can help voice their concerns during the transformation process.

We reported that some institutions also benefit from two-way communication when implementing human capital flexibility practices. Wage, incentive and reward systems that link employees’ knowledge, skills and contributions to corporate results are based on valid, reliable and transparent performance management systems that take adequate measures; 7. Make meaningful distinctions in performance. Organizations implementing a merger or transformation have found that communicating information early and often helps understand the intent of planned changes and builds trust among employees and stakeholders. Cross-cutting teams are responsible for areas such as organizational culture, communication, training and development. Once this feedback is received, it is important to consider and use this solicited employee feedback to make appropriate changes in implementing the merger or transformation. Functional teams are responsible for areas such as human capital, financial management and information technology. Executives at both Hewlett-Packard and Northrop Grumman told us that merger and transformation implementation teams should consist of people with prior merger or acquisition experience and good program management skills.

Because employees often come from different source components during a merger or transformation, sharing a consistent message with employees, customers, and stakeholders helps reduce the perception that others are getting the “real” story when everyone is actually getting the same thing. Senior managers from both major components (Hewlett-Packard and Compaq) would jointly attend these employee meetings to ensure that employees had the chance to meet new members of the team and also to see that both parties were in agreement on the expected changes. This chief executive considers JPMorgan Chase’s communications strategy to be a key success factor in its recent merger because it was built around communicating messages at all levels of the organization and reinforcing the merger’s progress. In addition to selecting high performers, Northrop Grumman also increases the credibility of the implementation team in the eyes of employees by selecting team members from each of the source components and then distributing an organizational chart that identifies the component from which each team member originates. Such alternative types of information may include status reports on progress on the merger or conversion, exactly when certain details will be announced, or responses to rumors or news in the press.

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