A merger is nothing but a 'planned' crisis

Communication World, Dec, 1996 by Patrick Coulter

A massive pollutant spill, exploding plants or planes, or a defective consumer product - these call for "crisis communication." But a corporate merger? A merger shouldn't seem like a crisis. It's something the companies involved want to happen. A communication crisis is supposed to be an unexpected event that can seriously damage a corporation's image, credibility and bottom line.

If It Looks Like a Duck...

Yet, in many respects a major merger is not unlike a sudden accident or incident. While mergers differ from crises in being planned events, from my vantage point, they both have the same dramatic effect on a company. Mergers and crises alike:

* Require an immediate, coordinated public relations response. Communication teams busily work through the night churning out needed materials under terrific time pressure.

* Quickly focus extensive media and public attention on the company. Media bombard the company with calls hoping to verify mounting rumors.

* Require decision making at the highest levels of the company. The corporation's top executives are locked away in all-day, intense sessions. Yet it is these executives who must make key communication decisions and, often must deliver the message personally.

* Interrupt the normal operation or conduct of business. Employees up and down the management chain slow down their efforts as they anxiously await forthcoming news.

Facing a Common Danger

In short, companies going through either experience seem to follow the same frenetic pace. And all corporate communication teams coping with these events face the same danger: losing control of the message.

In the recent case of the TWA crash off Long Island, for example, the media were far ahead of the airline's PR staff in reaching family members and speculating on the cause of the crash. The result: Initially TWA was viewed by the public and some government officials as aloof, uncooperative and possibly unsafe to fly all of which TWA could ill afford given that it has filed for bankruptcy-court protection twice in the past four years.

When it came to announcing the Bell Atlantic merger with NYNEX, we were especially concerned. The media had been having a feeding-frenzy over corporate downsizing. Would the press try to portray our merger as just another example of big business trying to win over investors by cutting jobs? We got right out in front of this issue. In the opening news conference, and in every other media event we held, we hammered home the message that our merger would not result in any significant downsizing, and that it would be good for Main Street as well as for Wall Street. Both chairmen were in total agreement that the welfare of our employees should come first. The result: The media put a positive spin on the merger and did not tar us with the same brush as AT&T, which earlier was condemned by the press for announcing 40,000 layoffs.

Going Over Similar Hurdles

Crises and mergers hit a company in the same way - they present the same dangers. As a result, the basic communication challenges are similar and the principles the same. Here are some thoughts on how to manage some of these similar and daunting challenges.

The element of surprise.

In a crisis, like that faced by Rockwell after a number of B-1 bomber incidents, the media set the agenda. Responses are governed by the news organizations' timetable. In a merger, the date, place and details governing the announcement can be carefully planned. But the reality is that with leaks, you may find yourself having to quickly adjust communication plans. Weeks before our proposed merger announcement, a number of major reports and articles began to surface speculating on our plans. Had these leaks been more specific than they were, we would have had no choice but to go public earlier. Advice: Even with a planned merger, expect the unexpected. Contingency planning is a must in all situations.

The media's long attention span.

Large corporate mergers and crises both dominate the air-waves and print media the day they occur. And they both have a long shelf life. The fact is, mergers and crises are not single events, but a series of interrelated incidents that continue for many months after the initial event. In the case of the Challenger disaster, the initial explosion was followed by the recovery of the wreckage and by a number of memorial services and congressional hearings. A merger follows a similar timeline though not as dramatic - as a crisis dealing with matters of life and death. In a merger, the day of announcement is followed by opponent criticisms, state and federal regulatory oversight hearings, the shareholders meeting and vote and final signing ceremony. Advice: Develop a comprehensive communication plan that will take you through the entire process, not just the initial part of it.

Tight legal oversight.

Whether you're facing a merger or a crisis, the lawyers worry about remarks coming from the executive office that could open the company to even further legal review - and that's a legitimate worry. The problem is, by restricting information and releasing only a few general remarks, a company can create a siege mentality and let rumor stand in for fact.