Mergers always present a unique set of challenges — starting with employees’ fears of being consolidated out of a job. Fusing two distinct companies with unique working styles and corporate cultures can wind up in a battle of wills, not only between leadership but at almost every level throughout the newly-combined company.
Even in mergers between two companies with fairly similar portfolios and trajectories, the potential for issues that can crop up is significant. The anxiety accompanying mergers between two similar companies can focus on issues that often are unanticipated —  and the only thing more disconcerting than a problem is one that comes as a surprise.
Last week, two of the most significant cloud computing companies announced a mergerOpens a new window . Kronos and Ultimate Software’s merger will create one of the largest such companies in the world and the companies’ leaders estimateed that the new firm will be valued at approximately $22 billion.
In announcing the merger, the two companies put out a message aimed in part at easing employee fears from the very beginning, saying that they would likely add 3,000 positions to their workforce over the coming years. They also highlighted the accoladesOpens a new window that each companyOpens a new window has received for being a good place to work. That kind of emphasis makes it clear that the leadership’s intention is to create as smooth of a transition as possible for employees.
A few other measures that companies can take to ensure productive transitions during a merger:
Identify the transition
Acknowledge the time it will take to get everyone using the same systems and adapting to each others’ habits and behaviors. If the merged firm already has identified aspects of the organisation that will be jettisoned in favor of one or the other’s way of performing — maybe one has a better strategy for checking in, or a more efficient way of setting up meetings — let everyone at the company know which direction to go and share your enthusiasm about why.
If you’re open about the bumps that will come with the transition period, each of those bumps will feel like part of the process rather than triggering a crisis.
Create key alliances
Spotting mid-level managers in both companies with equivalent positions and facilitating collaboration between them will set a precedent and create a model for the rest of employees to follow.
Putting teams from both companies on projects together and encouraging exchange will push people quickly to get past any initial hesitation. Leaders always set the patternOpens a new window and tone that the rest of the company will follow, so set a good example.
Celebrate milestones
There’s no better way to bond than celebrating together.
By setting up milestones that are almost impossible to miss and then taking the time to celebrate together as one new company is a great way to solidify a sense of teamwork across the entire workforce. It doesn’t have to be a major win. Maybe achieving a specific number of new clients post-transition or even just making it through the first month of transition will suffice.
The point is to give the entire staff a reason to raise their glasses and smile together.