Archive for August, 2012

Merger. Acquisition. So what’s the new Branding statement?

Saturday, August 4th, 2012








Positive Brand Recognition, generated through the actions of employees, plus communications from the organization, add up to and are directly related to Profits.

Recently, I was talking with a person who works in an M&A group that focuses primarily on the financial industry.  I was seeking help in being introduced to the right people within the organization, in an attempt to discuss the importance of having branding strategies being a part of early-on efforts.

This person said outright, “Well, I have never heard of our organization recommending any branding types”.

I paused a moment, and thanked him for his time, and then sat for a while pondering what he had said.  I would think this linkage – organizational change and the need for communications – would be one of the most reasonable of associations.  Not the most far-fetched.

Consider an organization that is merging with another company: acquiring or being acquired.  What complications could come out of such an activity for customers?  And especially employees!

Without appropriate attention, you can expect an organizational culture clash.  The acquirer being the “winner”: the acquired, the “loser”. A key question should be “what are the employees of each of these companies suppose to do in regards to dealing with existing customers?”

Case in point:  Hewlett Packard and EDS.  If you know anyone in these organizations, you’ve learned of many occurrences of unpleasant situations.  Not what you would call friendly.

Where was the planning in how to make the new strategic plan truly effective?  After all of the reorganizing, what is the direction for employees?  What is the marketplace suppose to think?  If you are a customer, who are you suppose to work with?  Does this person have my best interests at heart?.  Are they more worried about keeping their job?  What is in this for me, as a customer?

If nothing else, this is a reminder to strategic planning and project management personnel in mergers and acquisitions organizations that Branding, a business strategy, is vital to the success of the new organization.  Any time and money spent to redirect the marketplace’s image of the new company will pay off sooner.  And better than later!