Managing during a merger.

In the November-December 1988 issue of Physician Executive, Dr. Marks' article outlined typical reactions to the uncertainty of being involved in a merger or consolidation. The article introduced the concept of the "merger syndrome," which encompasses executives' stressful reactions to a combination and the development of a crisis management orientation. The bottom line, if the syndrome is allowed to go unchecked, can be marred executive and employee performance and poor financial and operational results. The merger syndrome is a prime reason that two-thirds of all mergers and acquisitions are financial failures. Consumed by their reactions to mergers, executives frequently lose touch with the needs of employees. In this article, the author summarizes steps that can be taken by executives to help their employees cope with the trauma of merger; to minimize negative employee reactions, such as reduced productivity and increased turnover; and to build effective postmerger teams.