A solid communication plan is critical during a merger or acquisition. The credibility of the plan depends upon the credibility of the prior organizations' communications and the ability of the organization to create initial trust. One of the best ways to create trust is to be truthful and forthcoming. Typically, when mergers and acquisitions are not successful, it is because communications were not well done or supported by management.

Address all stakeholders. The communication plan should include all stakeholders --shareholders, customers, communities impacted, media, employees, vendors and any other interested parties. Generally, the initial information provided to each group is the same. Over time, the special interests of each group become paramount.

Content. Initial communication to all parties should address who is in charge, where the headquarters will be, and whether or not there will be layoffs or further sale of business units. Over time, shareholders will focus on financial performance, employees will need information about personnel policies, and vendors will need contractual issues addressed.

As a general rule, initially it is a better trade-off to provide timely information than to create attractive communication pieces. And, more information initially is better than less. Provide biographical information on individuals from the other organization(s). Histories of the companies and descriptions of the companies products are valuable. Include face-to-face meetings and tours done by executives in the communication plan. Use technology such as e-mail, telephone, videoconferencing and electronic hotlines.

Be sure to collect and destroy training, orientation or recruiting materials that were printed for one of the former organizations.

Here are some tips for developing a communication plan:

l For a formal communications process, consider purpose, encoding, transmittal, response and accountability.

l For communications strategies, consider language use, appearance, physical conditions and an effective appeal to the receiver.

l Include two-way, upward and informal communications strategies, as well as downward communications.

l Utilize various methods of communications. Do not ignore the grapevine or gossip. One of the most effective ways to counter unofficial communications is to communicate honestly, openly and frequently.

l Address bad news quickly.

l Address employees who do not speak English in their primary language.

Employees, especially informal leaders among employees, will "fill in the gaps" in communications. If information is not forthcoming, there will be speculation and rumor accepted as fact. Rumors can be very harmful and can create negative employee attitudes that will be very difficult to modify. These are times that are freighting and fearful for many employees. Therefore, it is very important that management provide correct, credible information as soon as possible.

93,100, What type of communication plan should be created to deal with merger/acquisition transition issues? A solid communication plan is critical during a merger or acquisition. The credibility of the plan depends upon the credibility of the prior organizations' communications and the ability of the org