Retaining Top Talent is Key To M&A Survival
When it comes to surviving a merger or acquisition with your image and credibility intact, top executives worldwide say retaining key talent is "critical," according to recent survey by market research firm Watson Wyatt Worldwide, Bethesda, Md. The priority for executive management is shifting to the human side of change from the legal, financial and operational aspects of M&A deals, says Tim Galpin, Watson Wyatt's global practice leader of merger and acquisition services.
The survey tapped top executives at 190 companies in the U.S., China, Hong Kong, Korea, the Philippines, Singapore and Brazil. In addition to retaining key talent, other high-ranking executive priorities during an M&A are:
- 71% - Communication;
- 69% - Retention of key managers; and
- 52% - Integration of corporate cultures.
Merger communications needs to first focus on addressing the various "me" issues for employees, including job security, pay, benefits and relocation. Then communicate about the future direction of the organization and the employees' role in it. For strategies on developing strategic internal communications, see this issue's column by Nancy Turett, president of the consumer and healthcare practices of Edelman Public Relations Worldwide.
(Watson Wyatt, Andrew Sandor, 301/581-4693, http://www.watsonwyatt.com)
Corporate Reputation Needs To Be Measured
Although most CEOs think corporate reputation is important to their business, most don't measure it, and their boards don't hold them accountable for it. These are the findings included in a new report, "Corporate Reputation Watch," by Hill and Knowlton, New York, in conjunction with Chief Executive magazine.
In the healthcare industry, however, there is a strong emphasis on an organization's "brand" in the marketplace. Compared to 66 percent of all CEOs, 76 percent of healthcare CEOs strongly agree that their company name is a brand that helps achieve market-driven goals, according to the survey of 650 Chief Executive subscribers, most of whom have titles of CEO, chairman, president or vice chairman.
Other corporate trends include:
- 65% of CEOs say they dedicate more time to corporate reputation than they did five years ago.
- Companies with revenues in excess of $500,000 are the most likely to have a system to evaluate corporate reputation.
(Hill and Knowlton, Susan Suss, 212/885-0605)
Obesity Outreach Key for Girls
Public health programs targeting obesity in children should consider implementing a program that has shown success among middle-school girls. The program, "Planet Health," used school-based intervention strategies that targeted 1,295 students from four Massachusetts cities. The Harvard School of Health in Boston evaluated the interventions.
The program works to reduce TV viewing to less than two hours per day, increase moderate and vigorous physical activity, decrease high-fat food consumption and boost fruit and vegetable consumption among the youngsters. The program targeted all students, not just those who were obese.
Over the course of the two-year study:
- The prevalence of obesity dipped from 23.6% to 20.3 % among girls, but increased obesity levels among boys from 21.5% to 23.7%.
- For girls, the program succeeded in increased fruit and vegetable consumption.
Researchers believe the program was more successful with girls because they tend to be more focused on diet and activity.
The complete findings of the study are published in the April issue of the American Medical Association's Archives of Pediatrics and Adolescent Medicine.
(Harvard School of Public Health, Bob Brustman, 617/432-3952)