By Todd LeDuc
EMS systems continue to evolve from the early structures put into place after the publication of “Accidental Death and Disability: The Neglected Disease of Modern Society.” To save money and improve services many departments either have or are considering consolidating or merging services with another department. But a merger can lead to strong emotions and needs to be managed methodically and transparently. Here are six steps that should be a part of any merger or consolidation process:
1. Start with a consolidation feasibility study
System consolidations are typically driven by key issues that often revolve around cost efficiencies of saving money, reduction of duplication, enhancements in service delivery and enhancements to employee benefits. Consolidation feasibility studies are a good first start to objectively and analytically reviewing opportunities to enhance service efficiencies, planning efforts, and revenues, while eliminating redundant expenditures.
Consolidation of service can often be an emotionally-charged issue, especially if viewed through the lens of a “winner and loser” or “us versus them” spectrum. The use of an industry expert or consultant allows EMS leaders to objectively analyze the strengths, opportunities, threats and weaknesses they’ll need to fully understand in order to make well-guided public policy decisions.
2. Recognize financial savings may not happen immediately
While consolidations are often considered and examined to reap significant financial savings, often times the reality is that savings may require a long-term effort focused on cost avoidance and lack of financial duplication.
In EMS, like other businesses, most expenditures are directly related to personnel and their compensation and benefits. Successful mergers and consolidations often look at any potential savings on the personnel side through attrition. Utilizing an employee-friendly approach in which policy makers understand that any potential personnel savings will be achieved through a long-term plan typically allays fears of imminent workforce reductions.
3. Communicate with personnel
Consolidations often succeed or fail based on employees’ support, or lack thereof. Employees, more often than not, look at how they will fare in a newly consolidated or merged system. Basic needs such as wages, benefits, job security, seniority protection and advancement opportunities must be addressed with personnel early in the process.
Lack of information breeds fear, resentment and rumors. Organizational business guru Peter Drucker has often said, “Feedback is the breakfast of champions.” Drucker’s advice certainly holds true in a consolidation and merger environment where change is the constant theme.
Best practices for proactive communication includes weekly merger newsletters addressing “hot topics,” stakeholder forums and electronic communication to address concerns. The opportunity to share information regarding potential consolidation should also include a transparent dialogue with local media.
4. Transparency leads to success
Tip O’Neil, former Speaker of the U.S. House of Representatives, coined the phrase “all politics is local.” Consolidation and merger discussions are often steeped in local politics. For the greatest opportunity to succeed, consolidations must consider the concerns of all stakeholders and attempt to be transparent in addressing them.
Emotions often drive much of the concerns in these processes. However, real or perceived issues must be acknowledged and addressed. Open forums that share factual information and data with stakeholders may allow better-informed opinions.
5. Maintain a methodical approach
A successful consolidation or merger proposal requires a thorough and methodical approach, which often takes time. A benefit to this approach is that it establishes a transparent process, and lends credibility to the proposal. When key stakeholders sense that a process is being rushed, or that the outcome of the process has already been pre-determined, skepticism and mistrust become the rule of the day.
Depending on how long the exploratory process takes, uncertainty and fear of the unknown can take hold in all organizations involved. Fear can wreak havoc with morale and create a sense of instability. This creates a balancing act of ensuring due diligence and process integrity with managing stakeholder information and expectations. The key during this ongoing phase is to continue the information feedback loop.
6. Manage with ICS
Once a policy decision has been made to consolidate, the importance of an effective transition structure cannot be overemphasized. A systematic approach to implementing the consolidation is the single most important item for success moving forward.
Many public safety agencies apply the incident command system process to the transition by creating a team that is led by an incident commander with staff assigned to objectives and tasks in the functional areas of finance, operations, and logistics and planning.
Imagine your merger and consolidation as a large complex incident. Utilize incident action plans, organizational charts, and goals for each reporting period. These processes are familiar to emergency responders and lend themselves to organizing a complex and often emotional process.
Finally, addressing employee transition issues at the earliest opportunity aids in ensuring harmonious employee relations and support. Regular communication and progress reports are a vital component to success.
About the author
Todd J. LeDuc, MS, CFO, CEM, MIFirE is division chief of health and safety and accreditation for Broward Sheriff Fire Rescue a 750 internationally accredited metro department in Broward County, FL. Chief LeDuc is a 25 year veteran of the department. He is Secretary of the International Association of Fire Chief’s Safety, Health & Survival Section. He has conducted master and strategic plans, department evaluations and consolidation studies in over twenty states. He is a peer reviewer for peer credentialing and agency accreditation, has published extensively on fire service topics and is a frequent conference presenter. He received the 2013 IAFC Gary Briese Safety Performance Award; the 2013 Center for Public Safety Excellence Ambassador of the Year; and in 2015 safety leadership award by Local 4321 of the International Association of Firefighters. He can be reached at tjlbcems@aol.com
