Buying out, selling out, or merging with another firm need not be the traumatic end-all move projected by many industry watchers, especially if you do not have a union involved. Let’s assume you have been negotiating with another firm about the possibility of merging for mutual business benefits. Let’s also assume the merger will entail considerable restructuring of both businesses, eliminating some employee positions and causing major changes in many others. The question both you and your future partner need to address is: “How can we accomplish our goal without losing our more valuable employees?”

What you DON’T want is for this merger to be one where all the talent leaves for other pastures and leaves your new firm struggling. You need a guideline that can make the transition a positive experience and easier and less painful to all. The ideas below work whether you have unions or not. Unions will complicate the transactions only in that you will need to involve them as part of your restructuring team. Here are several ideas that may be of some help to you in your changeover.

KEEP NEGOTIATIONS SECRET
Let’s start with the biggie. Rumors of any type are a major destructive force, which you have to keep under control. Yes, you will be talking with others high-up in both firms, but you can have your corporate attorney draw-up confidentiality papers to sign before you bring up the subject; and of course, you should always stress the importance of allowing no hint of the proposed changes to leak. Keep your transition team small. Pay attention to the little give-away things such as spoiled copies in the trash, memos on desks, and secretarial notes.

BRING THE PLAYERS IN EARLY
Bring your key personnel into the game early. Whether you will use these specific individuals in their present capacity in the new firm is not the important item. What is important is making them part of the solution. This attention may keep them from being part of the problem.

DON’T DWELL ON THE FUTURE
Spending your efforts on explaining the new system is a waste of time and money. I don’t care how well you and the other CEO have designed the new firm; there are tons of missteps you will make before launch. For most employees, even those whose expertise you will use in the new structure, new means uncertainty and the chance of being terminated. When you have to talk, your approach should focus on what was wrong with the old system and how modifying or getting rid of the old system will make things better. Discuss, but don’t EVER promise things such as: “Throwing out the old will allow employees to gain in position, prestige, or pay.” It may not!

DEFUSE COMPLAINTS
Complainers win. Don’t give them a chance! If you’ve done a good job of showing some of the problems with the old system and how the new firm will positively address these problems; you will have the opportunity to show that your new plan is one way to eliminate or solve these old problems. Take the opportunity to list ALL of the options you considered, then explain why the selected option is the only one viable. Once your group has made the decision, stick to it.

EMPLOYEE TERMINATIONS
If your new company requires major terminations of either people or projects, you may be better served to hire a Transition Manager/President to absorb the brunt of the flack. Again, your attorney can help by drawing-up a Transition Manager/President document that permits the temporary person to carry out the dirty work without you getting personally involved. Personally, I think this method stinks, but many a large company has used it.

GLITTERING PARACHUTES
They don’t have to be golden, and you may not even have such a clause in your executive contracts; but you need to get rid of major players who feel so threatened by the change he or she will end up a thorn in the side of the new structure. A financial severance package may be the least expensive way to deal with this problem. You will not benefit by trying to convert a non-player.

PROGRAM CARRYOVER
Be careful you don’t throw-out the baby with the bathwater. Under or poorly performing divisions may contain the seeds of greatness in the new firm. Sometimes a new focus is all that’s needed to turn a loser into your star. If you must terminate a program or division, consider adopting it into a new program where it can be phased out over a period of time rather than abruptly terminated.

EMPLOYEE TERMINATION
If at all possible, transfer employees within the structure. Normal attrition will thin the ranks. Even if terminations are required, they can be spread out over a longer term, thereby lessening their impact. So … What’s keeping you from success? For hundreds of tips and ideas visit http://www.tulenko.com; or snail-mail requests to: Paul Tulenko, 2320 La Vista Court NW, Albuquerque, NM 87120.