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Hello and welcome back to Business English Pod for today's lesson, the second in our series on integrating the operations of two companies.
These lessons will focus on discussions about how to merge or integrate companies and operations.
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Mergers can bring enormous benefits to corporations.
They can lead to greater efficiency, greater market share, greater value and greater access to talent.
But there are a thousand and one things that might get in the way of a successful integration.
And to overcome these potential roadblocks, you need a strategic approach.
Mergers are part negotiation.
Your company has a lot to gain, but you can't sign everything away too easily.
That reason, you may find it important to assert your position at crucial times and to emphasize issues you consider critical.
In taking a strategic approach.
It's also important to identify those big challenges or roadblocks i mentioned.
Once you've done that, you can address these challenges, and it's always helpful if one of the companies has gone through a merger before.
In that case, you can reference prior experience as you plan the integration.
In today's dialogue we'll rejoin a conversation between two chief operating officers of companies that are planning to merge.
Michelle and Alex are discussing how the integration will happen and addressing challenges along the way.
As you listen to the dialogue, try to answer the following questions.
1.
What major challenge does Michelle identify related to integrating the IT systems?
2.
What particular issue does Michelle emphasize needs to be considered besides technical issues?
3.
What does Alex suggest to counteract worries about people leaving the company?
All right.
We can fill in the details later, but I think it'll help push forward on some of the systems.
Yes, I think that sounds like a good approach.
And on the systems front, our IT team has reviewed both systems and well, we really think the best thing is to migrate your team to our platform in phases, starting with finance and HR.
I have no issue with that, but it's not going to work for every system.
You mean?
Product database.
We're super customized there.
Direct migration is not going to work.
IT didn't flag any issues there.
Believe me, it's pretty gnarly.
I think it would be better for now to run parallel systems on the product side and maybe create a task force to look at a long-term solution.
I like the idea of a task force.
It's a complex issue for sure.
Speaking of complexity, there's the cultural piece to consider.
Our environment is full-on agile, but your company is more structured, I guess you could say.
Right.
We've actually faced exactly this before.
And one of the things we did was some cross-company mentorship plus town halls around how to blend the two.
That's a start, but there needs to be some good, clear communication ongoing.
There are rumblings about potential layoffs.
I want to get ahead of that as much as possible.
So maybe once we finalize leadership, we can push out some clear messaging pronto, like in the next two weeks.
Or sooner.
Want to keep culture front and center.
I can't emphasize this enough. it tends to get lost amid all the more technical stuff.
Yeah, I know what you're saying.
And it's wrapped up with HR generally, and retention.
We've actually had a couple of engineers poached by the competition since we went public.
I did hear about that, and we've been working on retention strategies.
That would include stock options and professional growth opportunities.
We want your folks to see that this might actually expand career opportunities.
I like that angle.
And if we can figure out some messaging on that sooner than later, it'll help quell anxieties.
So, anything else we need to cover today?
Now let's go through the dialogue again and look at the language and techniques Alex and Michelle used.
We join the conversation just after Alex has suggested he and Michelle co-lead some departments to smooth the transition.
All right, we can fill in the details later, but I think it'll help push forward on some of the systems.
Yes, I think that sounds like a good approach.
And on the systems front, our IT team has reviewed both systems and well, we really think the best thing is to migrate your team to our platform in phases, starting with finance and HR.
Mergers involve a lot of trade-offs.
There'll be choices to make about what to keep from each company.
And if you have strong opinions about these trade-offs, you need to assert them confidently.
This is what Alex does when he introduces his idea with, we really think the best thing is.
This is not the time for softening language, like it might be best.
Rather, you want strong language to show a firm position.
What are some other ways to assert an idea in this type of discussion?
Let's run through some more examples.
We really have to prioritize merging finances first.
Our best move here is to unify the sales platforms over a phase timeline.
It makes most sense to keep both brands until we complete the full merger.
Integrating HR policies across the board is critical in this cultural shift.
What does Michelle think about integrating or moving her company to the other company's IT system?
Let's listen.
I have no issue with that, but it's not going to work for every system.
You mean... product database.
We're super customized there.
Direct migration is not going to work.
Michelle is clearly open to the idea of migration, but not in every area.
She's very clear that direct migration will not work with the product database.
As she says, their platform is very customized.
In other words, it is designed for their needs in particular and might not transfer easily to another system.
It is exactly these kinds of challenges that you need to identify.
It's best to anticipate difficulties at this stage so you can plan to deal with them effectively.
Let's practice some more ways to clearly identify major challenges in a merger.
One big challenge is integrating IT systems smoothly.
We have customized reporting tools that won't transfer easily to a new system.
We'll likely face some issues with different regional tax laws.
Now let's listen as Michelle proposes the solution to the challenges she's identified.
IT didn't flag any issues there.
Believe me, it's pretty gnarly.
I think it would be better for now to run parallel systems on the product side and maybe create a task force to look at a long-term solution.
I like the idea of a task force.
It's a complex issue for sure.
Michelle has obviously thought through this particular challenge before, and she's come up with a solution that involves running both systems side by side until a special team can find a longer-term solution.
This is not the only challenge Michelle has identified.
What Alex calls a systems work complex.
Michelle uses his word to introduce another challenging issue.
Let's listen.
Speaking of complexity, there's the cultural piece to consider.
Our environment is full-on agile, but your company is more structured, I guess you could say.
Right.
We've actually faced exactly this before.
And one of the things we did was some cross-company mentorship plus town halls around how to blend the two.
Michelle has named one of the trickiest obstacles to deal with a difference between organizational cultures.
A culture clash can be hard on teams and get in the way of productivity.
Fortunately, Alex has had prior experience with this issue.
He references this experience when suggesting solutions to the cultural challenges.
He talks about mentorship between the two companies, which is when more senior people guide or coach junior people.
He also suggests town halls or large open meetings where people can talk about their concerns.
Let's run through some more ways to reference prior experience when discussing how to integrate companies.
In our last merger, we found weekly team building activities helpful.
Previously, we saw that cross-departmental meetings kept everyone aligned.
When we merged with Print Kings, we used an internal newsletter to keep employees informed.
In a past acquisition, staggered team introductions help people get comfortable.
So, does Michelle think that Alex's solutions will work?
That's a start, but there needs to be some good, clear communication ongoing.
There are rumblings about potential layoffs.
I want to get ahead of that as much as possible.
So maybe once we finalize leadership, we can push out some clear messaging pronto, like in the next two weeks.
Michelle wants more than Alex is suggesting.
She's worried that people are talking about possible layoffs, which are job losses.
Alex proposes some communication or messaging in the next two weeks.
But as we can hear, this is still not quite enough for Michelle.
Or sooner, want to keep culture front and center.
I can't emphasize this enough. it tends to get lost amid all the more technical stuff.
Michelle doesn't quite feel that Alex understands how critical the cultural aspects of integration are, so she emphasizes the issue.
If you emphasize something, you assert that it is especially important.
And Michelle uses this very word, saying she can't emphasize the cultural issue enough.
If you're planning a merger, you're going to have things you feel are very important and there's no guarantee the other side will understand that, unless you emphasize it clearly.
Let's try some more ways of doing that.
I really feel we have to keep client satisfaction in mind at all times.
Employee retention is crucial.
We can't afford high turnover during the merger.
Communication is key here, especially since this change will affect everyone.
Now let's get back to the dialogue, as they talk about HR issues a bit more broadly.
Yeah, I know what you're saying.
And it's wrapped up with HR generally, and retention.
We've actually had a couple of engineers poached by the competition since we went public.
I did hear about that, and we've been working on retention strategies.
That would include stock options and professional growth opportunities.
We want your folks to see that this might actually expand career opportunities.
Michelle points out that they have lost employees to the competition or competing companies already.
That's a major concern that needs to be dealt with.
This is why Alex suggests ways of improving retention or keeping employees.
Alex's suggestions are strategically designed to work against the issue of losing people during the integration.
This kind of strategic problem-solving is critical, so let's practice some more examples.
Highlighting our benefits package might ease employee anxieties.
Explaining how our new systems improve workflow may help win over hesitant staff.
To counter any doubts, we should emphasize the increased market reach this merger brings.
Now let's hear how Michelle finishes this part of the conversation.
I like that angle.
And if we can figure out some messaging on that sooner than later, it'll help quell anxieties.
So, anything else we need to cover today?
As Michelle points out, these strategies will help quell anxieties.
This simply means to reduce worries.
Of course, any major change like two companies integrating will be hard on people.
This much is clear from Alex and Michelle's conversation, and they've worked hard to identify ways to make the change smoother.
Now let's practice some of the language we learned in today's lesson.
Imagine you are an executive with a company going through a merger.
You're talking with an executive at the other company about the impact on clients.
You'll hear a cue by this executive.
Then I'll give you a suggestion for what you can say in response.
We'll guide you through each step in the practice and provide an example answer for each response.
Ready?
Let's give it a go.
All right.
So you also wanted to discuss how we take care of clients, right?
Start by saying yes.
You want to aim for zero loss of clients throughout the process.
Answer.
Yes, I'd really like to aim for zero loss of clients throughout the process.
Well, I think most will be happy that they'll have a wider range of services.
Nase, that's true.
But one challenge is making sure they see those benefits.
Answer.
That's true.
But the big challenge is making sure they see those benefits.
Hmm, I see what you mean.
So how can we do that?
Next, say that in your last merger, you met with clients one-on-one whenever possible.
Answer.
Well, during our last merger, we met with clients one-on-one whenever possible.
That makes sense.
That way we can talk about the benefits to all this.
Next, emphasize that it's critical that they know they won't be paying more for service.
Answer Great, and it's critical they know they won't be paying more for service.
Yeah, I've already heard that's a worry with some clients.
Finally, say that you could get ahead of it by publishing a price schedule right away.
Answer We could get ahead of it by publishing a price schedule right away.
Now let's practice some of the vocabulary we've covered in this lesson.
In a moment, you'll hear a series of sentences with a word replaced with a beep.
Repeat each sentence, including the missing word.
For example, if you hear... You can say...
After each response, we'll provide the correct answer.
Let's begin.
Employees were very concerned about the possibility of for staff.
Answer.
Employees were very concerned about the possibility of layoffs for staff.
The clarity of the was crucial for the success of our marketing.
Answer.
The clarity of the messaging was crucial for the success of our marketing.
The program was to meet the needs of each team.
Answer.
The program was customized to meet the needs of each team.
Dave is in a hurry and wants us to get this report finished.
Answer.
Dave is in a hurry and wants us to get this report finished pronto.
We've reached the end of this lesson, our second on discussing an integration.
We've looked at how to assert an idea, identify major challenges, and reference prior experience.
We've also learned how to emphasize a critical issue, and address a concern strategically.
For more practice.
Premium members can access the online quizzes and PDF transcripts for this and other lessons on the BEP website.
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Thanks for listening, and see you again soon.
