The re-engineering of communication processes to manage post-merger integration challenges at a selected financial institution

Abstract

In any business and in particular complex, merging businesses there is a need for effective communication with both internal and external stakeholders. This is often difficult when, in the process of a merger, communication departments of the different consolidating entities, each of which may have had its own processes, are required to function as one synergistic unit. Merger-related disruptions to business, and particularly communication processes, result in communication failure, causing delays, duplication, incoherent flow of communication and greater margins for business error. This becomes a further challenge without a thorough audit and re-evaluation of all the existing and prospective communication-related business process options. Optimal consolidated business processes need to be re-engineered and continuously improved within the new environment. This study aims to explore the importance of re-engineering communication processes during mergers to ensure a successful communication function supported by a robust business process. The analyses and recommendations further aim to strengthen the body of knowledge available to communication specialists operating within the context of severe organisational change, helping them to understand not only why it may be necessary to undertake an exercise of this nature, but also the challenges, issues and questions likely to arise. This study aims to answer the questions: i) What factors affect communication processes when companies merge? ii) How do communications processes need to be structured to be effective when companies merge? iii) Why do communications processes fail when businesses merge? Primary and secondary research is undertaken with a prominent financial services institution as a business case. Primary research includes face-to-face interviews and empirical research. The interviews took the form of one-on-one sessions with each of the interviewees using an interview guide of semi-structured questions. Secondary research was undertaken for a sound theoretical foundation. In terms of research philosophy, the ontology is subjective, while the epistemology is interpretivism. Responses are coded, summarised, categorised and prominent themes identified as a basis for making recommendations. Throughout this process, ethical practice was undertaken with respect to colleagues, participants, the environment, society and sponsors. This research also aims to move towards an understanding of the factors contributing to increased productivity, enhanced organisational effectiveness and heightened staff morale. It also works toward a resultant improvement in profit and perception due to better communication processes in a dynamic environment where communication to stakeholders is a critical factor in business success.