MEMBERS MUST SEE PERSONAL ADVANTAGE
Tell members early
Releasing as much truth as you can as soon as you can gives you an advantage . It helps avoid damaging rumors from being invented and passed around the local coffee shop .
Make customers your partners
One manager I know encourages his members to take ownership of mergers , acquisitions or expansion of their cooperatively held business .
“ Before we start ,” he says , “ I tell them what we ’ re going to do and why we are going to do it .”
“ After we start ,” he explains , “ I tell them what we ’ re doing and remind them why we ’ re doing it .”
This manager includes his members and customers in whatever change is occurring . As a result , they are more likely to support it .
The most important question
The bottom line of successful consolidation communication is to keep this question top of mind : “ What ’ s in it for me ?” A proposed union may save money by sharing fixed assets or spreading variable costs over a larger organization . It may provide greater buying power or healthier markets for commodities . But , if you fail to translate that into direct or indirect member / customer benefits , the initiative may not succeed .
For cooperatives , members must see a personal advantage to voting “ yes ” and continuing to do business with the expanded organization .
DON ’ T FORGET THE EMPLOYEES Advising you to “ keep employees in the loop ” during consolidation talks may seem elementary , but I ’ ll say it anyway . Don ’ t place so much emphasis on customers that you overlook the very folks who could derail a union .
Employees are closest to the day-to-day operation of any organization . As such , they will most likely be the first to learn that unification talks are underway .
In a consolidation or merger , employees have the most at stake . Members or customers can take their business elsewhere if they don ’ t like your explanation of benefits , but employees are without a vote and stuck with the results .
If employees perceive a merger will not benefit them , they may decide to leave , creating a costly loss of talent and experience . Even before that , disgruntled employees may contribute to sinking any deal . In frequent contact with members , they have the potential to cast a proposed merger in a negative light , unless convinced otherwise .
The employee of a rural co-op is probably a neighbor to a member . He or she may attend the same church , shop in the same stores and attend the same sporting events . There ’ s a high likelihood that a member ’ s attitude towards a proposed merger will be influenced by that of an employee .
Convince employees of the benefits
At the very least , assure employees that little will change — but only if that is true . If it is not , you will face bigger problems when you try to implement the merger .
On the positive side , convincing employees that a proposed consolidation or acquisition will benefit them may increase their allegiance to the process . One VistaComm client makes it a point to remind his employees that “ our growth will create greater opportunities for you .”
Make employees your unofficial voice
If employees have the most contact with members , why not utilize that fact to your advantage ? Keep them well informed . Give them talking points on issues you know the members will ask about . That way , when members or customers talk with an employee , they are more likely to get the straight story instead of a fearfully twisted version of the proposed union .
22 AGRI-INSIGHTS ISSUE 2 2017 844.453.9261