CCM Roundtable

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CCM Roundtable
Communicating Effectively for Change

• Panelists
• Jim Geier
• Noreen Verbrugge
• Jill Vitiello
• Janet C. Walkow

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Discussion Points

• Understanding the landscape
• Identifying and implementing change strategies
• Building for long term strength
• Measuring engagement and effectiveness

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Communicating Effectively for Change

• Change is defined in Websters Dictionary
• To undergo a transformation
• To make radically different
• A major change in form, nature or function

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• Mergers, acquisitions
• Organization restructuring
• Facility closing
• New competition or economic factors
• Leadership changes

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Communicating Effectively for Change
Understanding the Landscape

• The key deliverable and outcome for any change
  initiative is helping your employees through the
  transaction and transition and deliver the
  business plan

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Communicating Effectively for Change
Understanding the Landscape

• Issues to consider when going through change
• Change agenda
• Factors at Play
• Alignment
• Stakeholders
• Messaging

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• Is the change more of an incremental shift,
  rebuilding or a dramatic turnaround?
• What is the time frame?

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Change Strategies Decisions

• Mirror and enable business strategies
• Plug into key decision points
• Partner and ensure alignment across the
  leadership

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Clear Communications

• Shared vision
• Integration updates
• Timely
• Flexible and adaptive
• Authentic
• Transparent
• Rules of the road
• Plugged into the grapevine

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Connected Partners

• Integration team
• Colleagues, including HR, Finance, Legal
• Customers, Patients, Consumers
• Vendors
• Media
• Investors/Financial Community

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Consistent Leadership

• Share the vision
• Build trust and buy-in
• Convey transparency
• Convey decisions
• Recognize all decisions may not be made
  immediately
• Encourage
• Provide information
• Be present

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Making the Connections

• Situation Acquisition of a successful privately
  held 30 million U.S. specialty chemical company
  with 100 employees located in the Midwest, by a
  publicly traded 500 million global specialty
  chemical company located in the Mid-Atlantic
  region
• Rationale Strategic opportunity, new technology,
  modern manufacturing site

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Making the Connections

• Communication Challenges
• Company culture
• Leadership style
• Marketplace reputation
• Limited MA experience
• Clarity of message
• Rational for transaction
• Centralized versus decentralized management
  approach
• Senior management personalities

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Making the Connections

• Communication Approach
• Formation of a separate communication taskforce
  as part of the integration team with
  representation from both companies
• VP Human Resources was the point person on all
  communication
• Hired outside communication resources with MA
  experience
• Utilized various forms of communication
• Named the overall process the Listen and Learn
  Period

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Making the Connections

• Lessons Learned
• Need to spend more time educating parties upfront
  regarding the importance of communication
• Collaboration is important but not to the point
  of inertia
• Dont overestimate impact of senior management
  personalities
• Need to measure effectiveness of integration
  communication early on in the process
• Everything wont work as well as you think
• Be sure you have the right resources that
  understand the impact of MA integration

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Communicating Effectively for Change
Identifying Effective Change Strategies

• Roles of communicators, leaders
• Believe in the vision
• Create a plan to engage employees and customers
• Know no boundaries
• Own the plan
• Be open to change

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Case Study A Relocation

• Situation A major pharmaceutical company expands
  to occupy a new campus in the same state
• Message Growth, opportunity, space, expansion
• Perception We are being driven from HQ
• Solution Strategic communications and change
  management approach

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Case Study A Relocation

• Change Strategies Decisions
• Whats In It For You (WIIFY)
• The case for change
• Clear Communications
• Informational tactics for affected colleagues
• Inspirational tactics for all colleagues

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Case Study A Relocation

• Connected Partners
• Move team PMO lead Facilities IT Business
  heads
• Local and global communications network
• Community leaders
• Consistent Leadership
• Coordinated messaging
• Compassion

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Case Study B Acquisition

• Situation A leading privately held global
  specialty chemicals company acquires a competitor
  and must complete the deal in only 10 weeks
• Message Growth, opportunity, synergy, urgency
• Perception This deal is lopsided it favors the
  company and the people we are acquiring.
• Solution Fast-paced tactics to keep pace with
  speed of deal emphasis on listening, learning
  and sharing with Integration Team

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Case Study B Acquisition

• Change Strategies Decisions
• Executive level involvement
• Optimism and confidence
• Clear Communications
• Consistent key messages provide immediate
  foundation
• Tactics evolve to suit changing need for
  information and engagement
• Clear process to guide all communications

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Case Study B Acquisition

• Connected Partners
• Integration Team Legal HR IT Communications
• Your new colleagues
• Consistent Leadership
• Clearly defined roles and responsibilities
• Organization put in place as quickly as possible
• Call to action business as usual Day One
  transition and integration

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Case Study C Merger

• Situation
• A leading publicly traded Fortune 100 Company
  announces a definitive agreement to purchase a
  large publicly traded company
• Transaction requires FTC and other world region
  regulatory body approval
• Involved over 10,000 employees and multiple
  locations (10 plus)
• Merger timeline estimated to be at least nine
  months.

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Case Study C Merger

• Message Create a enterprise to defeat
  CardioVascular Disease. Growth, opportunity, and
  patient outcomes.
• Perception This is a reverse merger it favors
  the company and the people we are acquiring.
• Solution
• Global Communications plan focused on the
  message of Defeating CardioVascular Disease
• Constant and Consistent messaging to all
  stakeholders
• Joint leadership in Integration Teams
• Emphasis on constant outreach and leadership
  outreach from both companies to employees
  through all mediums
• Resolute focus on Day One and Shared Vision

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Case Study C Merger

• Change Strategies Decisions
• Executive level involvement
• Integration Teams created for each function,
  including Communications
• Focus on the benefit for patients and shared
  values for both companies
• Metrics Pulse Surveys to message and employee
  engagement
• Clear Communications
• Consistent key messages provide immediate
  foundation
• Acknowledge what decisions have been made and
  what we know to date
• Clear process to guide all communications
• Global outreach

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Case Study C Merger

• Connected Partners
• External and Internal Focus
• Customer Perspective Critical
• Integration Teams Across All Functions
• Recognize the Connectively Across Teams
• Consistent Leadership
• Clearly defined roles and responsibilities
• Visible Leadership
• Call to action business as usual Day One
  transition and integration

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Communicating Effectively for Change

• Building for Long Term Strength
• Sustain the momentum and drive the story, as well
  as the culture
• Partner with leadership to convey decisions and
  build credibility
• Provide good information and ensure understanding
• Measuring Effectiveness and Engagement
• Focus groups, surveys, electronic polling,
  informal conversations