How to Handle a Team Reorganization During a Company Merger & Acquisition

Merging with another company can put a decrease on employee morale. When this happens there are the possibility of layoffs, relocation, and a lot of overall change. Employees may become a part of a different team, new location, and even a new country – all with the same expectation of making great work and overall productivity. However, most companies tend to face a lot of angst and anxiety over the new changes rather than starting off meeting those new goals right away. Mergers and acquisitions occur every day all over the world. However, there are certain steps you should take when bringing two companies together to ensure you avoid disengagement or angry employees. Keep reading below on how to handle a team reorganization during a company merger and acquisition.

Be Transparent
When going through a merger or acquisition, be sure to be transparent, Explain the entire process to your employees. Be clear and explanatory and try not to be vague. Ensure the employees that they can communicate with you and help them to feel reassured and at ease when giving them the new information.

Pay Attention to Managers
Be sure that your managers are keeping their teams informed of everything that is going on within the company and the steps that the company plans to take in the future. Employees should also be encouraged to seek out information when they don’t know the answer to a question.

“Team Charter”
Team charters help to define what the purpose of your team is and create structure within the new team so everyone knows their expectations. Basically, a team charter acts as a roadmap for members to see where they are headed, how to get there, and what directions they will need to take. This is a great way to bring together two teams or a group of individuals who are new to working together. To start the process of a team charter, have everyone participate in a discussion that goes over the following: the team vision, values, objectives, roles, operations, communication, accountability, resources and support.

Welcome Questions
Throughout the entire process, be sure to welcome questions. Employees should feel safe to ask questions and you should provide an honest answer. This will instill trust in your employees and help to create loyalty towards the company.

While mergers and acquisition can seem to dampen employee morale and productivity, the above steps should help ensure your company handles it the best way possible.

MG (Retired) Mike Diamond is CEO and founder of Diamond Strategy Group. Diamond Strategy Group is a leadership development and consulting company. We focus on improving the quality of leadership within organizations by utilizing the same methods Mike and his consultants have used in both military and civilian sectors. We invite you to stay connected! Visit us online at and connect with Mike Diamond Strategy Group on LinkedIn, Facebook, Twitter, or e-mail us at!

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