An international technology company with 8,000 employees (Company A) had taken over a German medium-sized company with 1,750 employees (Company B). The merger had not gone smoothly. As a result, there was a very high level of customer fluctuation. In addition, around 50 predominantly high-performing managers and employees resigned.
The interim manager was tasked with stopping the wave of redundancies at short notice and filling key positions in the company. The overarching task was to realign the work of the HR department, integrate the corporate cultures and increase employee loyalty, as well as to establish a cooperative working relationship with the works council.
Employees of the merged companies were hostile towards each other
When the interim manager took on the assignment, the mood among the employees was very poor. The company was caught in a self-reinforcing cycle. Supplier problems, production stoppages and order cancellations on a large scale were causing great uncertainty in both companies and at all locations. In addition, the workforces of the merged companies were often hostile towards each other.
The hostility was exacerbated by the fact that the two sites of the acquired company were merged. This caused great tension and confrontation between management, employees and works councils. To make matters worse, the management and processes of administration and production were poorly organized. This led to further misunderstandings and efficiency deficits.
As a result, motivation continued to decline - which in turn exacerbated the problems in production and sales.
Cycle of demotivation overcome with appreciative communication
Disorganized and harsh top-down corporate communication during the merger process had severely damaged the trust of the workforce and customers. The interim manager therefore initiated a process in which management, executives, works councils and employees at all locations were able to return to respectful and open communication and gradually rebuild trust. A regular exchange promoted mutual understanding. Cooperation became increasingly collegial and efficient.
Together with management, works councils and employees, the interim manager developed a new corporate philosophy. Managers and employees from all teams and the interim manager acted as "watchdogs and seismographs of the growing positive climate" in order to promptly identify and effectively counter signals of a "return to old waters". The interim manager promoted the process of rapprochement through constant dialog, restructuring in the teams and targeted team development.
Slowly effective cultural change enables joint solutions
As the cultural change slowly took effect, it became increasingly possible to talk objectively about challenges and develop solutions together. One of the first results of the new collaboration was a new supplier management system that ensured a reliable supply for production. In a further step, the IT systems were harmonized, which further strengthened collaboration.
The communication structures and new processes such as sustainable project management with structured follow-up meetings, "Scrum light" and clear responsibilities as well as flexible team structures had a significant motivating and performance-enhancing effect. External project management consultants provided targeted support for the process.
Revitalizing the employer brand and successfully filling vacant positions
In the next step, the interim manager played a key role in realigning the company's external communication. Among other things, she initiated successful employee campaigns. As a result, 70 percent of the positions that had become vacant due to redundancies were filled over the course of a year. The remaining positions were initially filled by external employees with the aim of taking them on in the medium term.
New corporate culture creates cooperative working atmosphere at all levels
The jointly developed corporate culture and the increasingly cooperative working atmosphere between the merged companies and locations had a stabilizing effect and promoted performance at all levels. The balancing moderation of the interim manager enabled an initially objective and peaceful encounter, which then increasingly developed into a trusting, open and cooperative collaboration over the course of a year.
Revised production processes now enable predominantly smooth production. Increased marketing and sales activities are gradually compensating for the lost order volume: The company is on the right track.
