Reply To: What are the key performance indicators of successful PMI?

#109659

Paul Gray
Participant

Measure of success will always be unique to the respective acquisition matched to the expected outcomes defined or guided by the expected Synergies. That said, using the foregoing each acquisition will be unique but broadly speaking there should be some standardized KPI’s that emerge. One such plan in my opinion is to have a clear playbook for the high risk areas appropriately defined prior to Legal Day1. In other words it is imperative that your integration plan captures all the necessary activities for at least the first 90-days but more importantly should have a robust engaging engagement strategy that begins to be executed as early as Legal Day 1. I consider this critical as a lack of engagement especially on the part of the target can ensure that your integration will fail. On a look back basis this measurement will can be administered via a survey and will provide key insights for the next acquisition. For tangible synergies outcomes for e.g. Revenue Synergies, they usually require specific actions that are timebound to ensure that the value can be delivered within the established timeframe. Significant delays in ensuring these activities are established in the desired timeframe puts the synergy realization at great risk.

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