Communication and people integration strategy development in order to ensure a successful merger between two companies in the insurance broking and risk management sector

Abstract

Companies throughout the world have challenges regarding communications, however this issue becomes more important the bigger the organization grows. During our two-month assignment we focused on creating a communication and integration strategy for Marsh, a large multinational insurance broker, following a recent merger with JLT Belgibo. Whilst we integrated components focusing on general communication, we focused specifically on the merger context in Belgium. Our ultimate aim in this project, as well as the macro message that we tried to constantly keep in mind, was to help the employees of this new entity to have the best professional years of their careers. In order to achieve this the following objectives were first identified: Objective 1: To serve as a bridge between the academic world and business sectors by researching the latest materials on merger communications and interviewing academics and professionals on this issue. Objective 2: To find out what exactly went wrong and what went right in previous mergers between Marsh Belgium and the two companies acquired in the past. Objective 3: To find out what has to be done regarding merger communications prior to our arrival in May. Objective 4: To deliver recommendations that will avoid making the same mistakes that were made in the past. Objective 6: To develop a tailored merger and people integration communication strategy for Marsh JLT Belgibo in Belgium. Objective 7: To ensure that a hand over is achieved once our two-month assignment is over. To answer these questions, we assessed the leading academic materials, taking out what was useful for our recommendations, interviewed executives within the company and experts on communication and integration externally, and conducted an interview with employees that had been present during two former mergers. These interviews followed a qualitative interpretivist approach, meaning themes and concepts were developed from the transcribed interviews. The following recurring themes were identified through these interviews: mistakes in previous M&A activity, first impressions and assumptions, importance of transparent communication, involvement of HR, involvement of Management, tools for a successful merger and general recommendations. These recurring themes were specifically used in our recommendations, which include a communications focus, but also elements pertaining to HR integration processes, M&A corporate strategy and change management. In addition to the questionnaire-based interviews, we also conducted a survey which was sent out to all of the employees that were in the company being acquired. This gave us a chance to measure their attitudes towards a range of different questions, but also serve as a way of being able to measure changes in the future. We have recommended that the same survey be sent out to the same recipients after the physical move scheduled on the 31st of August. The recommendations section is divided into two, with one part focusing on the suggestions that take into account the interviews and survey and a second part focusing on the McKinsey framework that takes into account the entirety of our analysis. The recommendations from the interviews and survey, which we discuss how to go about in the final section, include: 1. Open, honest, transparent and frequent integration communication 2. Finding common ground and complimentary points between the two organizations 3. Creating stronger team spirit 4. Focus on keeping key talent 5. Increase Management Involvement and Interaction with Employees The McKinsey framework focuses first identifies the key stakeholders in the internal communications strategy, which include MMC Corporate, Marsh colleagues and JLT Belgibo colleagues. For each of these stakeholders it provides specific action points to take into consideration. Then the specific messages to address with JLT Belgibo colleagues in the communications are indicated, specifically discussing what the “rebuttal communication” should be. Lastly, specific sub groups, including young people and employees that have worked previously at Marsh are discussed, and several specific communications activities are suggested. In part two of the McKinsey framework, the main milestones and trigger events are identified, including the buildup to the merger phase, announcement of the merger, day one, one month after the physical move, 3 months after the physical move and lastly 6 months after the physical move. For each of these milestones, specific integration communication suggestions are made. Part three discusses the governance structure which will be needed to support such a plan and the messages which support the core message of helping these colleagues “embark upon the best professional years of their careers” is outlined in part four. A step by step plan which takes into consideration the main milestones discussed in part 1 and specific action points is explored in part 5 and lastly a discussion about the importance of two-way communication highlights the importance of adapting the internal communications strategy when needed based upon the feedback from colleagues.