Health system mergers & acquisitions: 7 tips for getting the brand right
The health system mergers and acquisition train doesn’t seem to be slowing any time soon. But if history is a guide, many of these mergers or acquisitions will derail – and won’t achieve their expected outcomes.
After 19 years of working side-by-side with health system and hospital leadership teams through their rebranding’s and M&A’s, we’ve learned a thing or two – actually seven general rules of the road – for managing downside risk and maximizing the possibility of health system M&A brand-building success.
Seven Tips for M&A Success
1. Acknowledge The Intangibles. For the people on the receiving side of an acquisition, it’s likely that they’re anxious, skeptical, confused and resistant. Acknowledging these feelings and operating with this framework will help smooth what is already going to be a long process of creating a coherent organization-wide culture.
2. Details. This says it all. Someone or some team must be responsible for capturing, bucketing and prioritizing them all in the context of pre, during and post M&A. It’s likely that they all fall into these buckets – Advertising, Corporate Communication, Business Papers, Branded Environment, Equipment, Exhibits, Exterior Signs, Finance, HR and Technology.
3. Structured Process. Early on, it might feel like the merger or acquisition is a lifetime away. But then it creeps up on you. Quickly. As early as feasible, create a cross-functional team whose agenda is to develop a structured approach to managing and implementing the operational and cultural aspects of the integration: prior, during and post event.
4. Strong Communication. Meaning communication should be clear and often. Emanating from the senior organization-wide leaders who are perceived to be collaborative and aligned in their ability to set clear expectations, build confidence and trust. Remember: this is a rocky time for many people, and transparency in communication goes a long way, especially in terms of keeping team members from jumping ship.
5. Me vs. We. Recognize that whenever people hear messages about the organization, they quickly translate that to “what does that mean for me.” So be prepared. For every statement about “we”, leaders need to be ready to address “me.”
6. One Brand. Consistency is the key to building brand credibility and a requisite for building a strong brand-led culture. So teams need to work together under the guise of chief communications and experience officers to coordinate communications and activities to avoid a schizophrenic brand experience – which is confusing to both employees and customers and debilitating to the future prospects for the business.
7. Think Beyond Today. Once one M&A is in place, more are typically in progress, or at least on the way. So think beyond current “events” and leave the door open to strategically and creatively accommodate future similar initiatives.
Takeaway
Health system M&A’s represent a crucial point in time for an organization and should be exhilarating for the people who are helping them realize their full value. While the potential returns are enormous, too many outcomes fall short.
Need help to take full advantage of the momentum and the possibilities an M&A can bring to your brand? Reach out to Chris Wood for a discussion.