Canadian HR Reporter

CANADIAN HR REPORTER October 16, 2017 FEATURES 17 in production, sales, marketing, accounting and human resourc- es to gauge where the company stood and whether it could be salvaged. A few weeks later, they met with the board and the CEO to pres- ent their recommendations, one of which was the departure of the CEO. e board and CEO readily agreed. Within months, morale, pro- duction, productivity and profit- ability improved and the company was on its way back to the black. Some six months after that, the old CEO met his friend the con- sultant for lunch, and asked about the three conditions: the team, the trailer and the flag. e consultant explained: "I wanted to bring my own team as each of them is an expert and we had been working together for years. I wanted a trailer instead of moving into head office so that we wouldn't be associated with sit- ting management, which had lost credibility. I wanted the trailer at the main gate, as each of the 5,000 workers would walk by twice a day, and they'd see the lights on, they'd see us at work and they'd be wondering what was going on," he said. "Finally, the pirate flag signalled that we were renegades — defi- ant, different from the old struc- ture. e message: 'Something's up, it's going to be different here, things are going to happen.' We didn't have much time, and with these innovations, people were ready for change in a matter of weeks. We needed that vibe, to prepare 5,000 people for a major correction." e tyrannical way A third approach to change man- agement is quite effective, but hu- man resources may want to stay away from this if it wishes to avoid lawsuits. The situation involved two business associations, X and Y, that had been sworn enemies for decades and decided to merge. Their leadership had finally recognized that since they were fishing in the same pond, repre- senting the same members and targeting the same audience, it would make sense to stop fight- ing and start speaking with one voice. But when this decision was announced in 1994, several em- ployees on both sides were both anxious and angry. is was understandable — af- ter decades of fighting and loath- ing the other party, they were now supposed to fall in love and get married? Yes, said the CEO of Association X, who crafted an internal memo along the follow- ing lines: "Good day all. After careful consideration, our board and the board of Association Y have in- structed their executive to com- mence a process of amalgama- tion, which is to take effect next March," he said. "As our missions and member- ships largely overlap, we figured it would be silly to keep bicker- ing. We expect great benefit and synergy from our joining forces and look forward to becoming an even stronger advocate for our members. If you have ques- tions or concerns, please contact my secretary and we can talk about it." Following the dissemination of this memo through the ranks at Association X, six enraged em- ployees picked up the phone, and made an appointment with the CEO. At the appointed time, each of them advised the CEO they had "great reservations about flush- ing our expertise and reputation down the drain by teaming up with those reprobates at Associa- tion Y." e CEO then advised them he had great reservations about con- tinuing their employment, and they were fired. e news of this development ricocheted through the building in a matter of hours (social media didn't exist yet) and, as a result, no other employees expressed any further concerns about the intended merger. e CEO wouldn't have won industry awards for inclusiv- ity and employee engagement, but his approach certainly was effective. Communicating change e best way to affect change is to communicate with stakeholders and prepare them for what is com- ing. Change always creates unrest and if employers want to bring people along, they have to ensure employees are not too worried. If questions aren't pre-empted or addressed promptly, people will fill in the blanks and assume the worst. Mergers succeed or fail based on people and cultures, and HR can play a key role from the get-go by planning, guiding and educating. Before a major decision is an- nounced, it is crucial to have a communications plan in place that lists every stakeholder, what they need to know, when they need to know it, who is going to tell them and who people can turn to with questions. is way, employers manage the message and suck the wind away from the rumour mill. Evert Akkerman is an HR professional based out of Newmarket, Ont., and founder of XNL HR. He can be reached at info@xnlhr.com. Prepare various stakeholders for changes ahead MERGERS < pg. 16 If questions aren't answered, people may assume the worst. To order your subscription call 1.800.387.5164 or 416.609.3800 www.safety-reporter.com/subscribe Safety Reporter Canadian Canadian Safety Reporter is an essential resource for the creation of a safe workplace. 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