Case Study: BASF

Challenge:

After the largest acquisition in its history, BASF—a large international chemical company headquartered in Germany—needed to retain talent in the face of anxiety produced by what was initially positioned as a “hostile takeover.”

Acquired American company Engelhard had a smaller global footprint, and was culturally very different. Prior to closing the deal, BASF had no access to Engelhard’s 7000+ employees at 99 sites around the globe.

Actions:

• Formed the nucleus of a global Integration Communications team of more than 40 communicators from BASF, Engelhard and Gagen MacDonald, focused on delivering consistency and creating an emotional connection
• Developed a Message Platform to drive consistent communications and deepen employee engagement
• Selected, trained and deployed a team of 60 BASF leaders to serve as Integration Ambassadors in various locations worldwide
• Created an Integration Website/Intranet with confidential “Ask BASF” feature and “In My Own Words” profiles of employees
• Orchestrated “face-to-face” strategies: Day One Welcome Event, Open Dialogue Sessions with BASF leaders, Business Focus Updates, and an appreciation gift
• Published the Insight Integration Newsletter, which was translated into 12 languages and distributed bi-weekly, reaching the workforce of both companies

Results:

• The Message Platform served as the basis of all communications.
• 700 Engelhard employees attended the Day One Welcome Event and an additional 745 BASF and Engelhard locations attended via teleconference; the following business day, the Integration Intranet received 14,000 hits
• Employees received consistent, frequent information from a variety of sources. Employee comments included: “felt well-informed,” “messages were clear,” and “appreciated hearing from the leader they know and trust”
• Within the first six months of the merger, BASF retained most key business leaders, technical experts, and site managers worldwide; retention of executive talent was a strong signal that convinced others to stay
• 80% of site managers reported feeling well prepared to communicate change to employees.
  “In My Own Words” was recognized by Financial Times (9/20/06) as an innovative way to help newly acquired employees acclimate
• In 2007, the Holmes Group honored BASF and Gagen MacDonald with the prestigious Gold SABRE Award for Change Management