Bear Stearns raises the specter of increased M&A activity in the financial sector, in spite of the dampening effect of the US sub-prime mortgage crisis. IT leaders in financial industry enterprises on either side of the acquisition equation must now prepare for the communication tasks leading into or resulting from this activity. Tell IT staffers what they need to know.
Pre-Acquisition Communication
Just as a loss of investor confidence is the harbinger of doom for financial services firms, the IT department must avoid an exodus of confidence as two firms come together.
The risks of poor acquisition-related communication include:
- Increased employee turnover.
- Decreased employee productivity.
- Employee subversion.
- Loss of market competitiveness.
Many of these risks can be avoided if IT leadership will communicate, communicate, communicate. Take these practical steps as soon as the intent-to-acquire is finalized:
- Explain the change. Provide IT staff with the big picture. Outline the corporate impact. IT leaders in the soon-to-be-acquired enterprises need to send their messages both from the top and through familiar channels to retain employee confidence. Equip supervisors with appropriate talking points. Employees will feel more comfortable asking questions if addressed in a familiar setting like their work area.
