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

#37383

Hi there,

Integration activities are there to ensure business goals laid by the strategy behind the M&A purpose are met. It is therefore rather difficult to enumerate specific KPIs for a successful integration. I believe the success of the integration depends greatly on the degree of achievement of the intended synergies. So each integration activity needs its own KPI. As showcased in the course if one such business goal was to reduce procurement costs for instance then one of the integration activity would consist of supplier consolidation. In such case some of the KPIs given a timeframe could be: (1) request volume discount by xx percent; (2) improve quality by reducing xx percent ppm rates; (3) improve efficiency by reducing xx man/hour in managing less suppliers.

Reference:
– Best Practices for Procurement Savings

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