What are the key performance indicators of successful PMI?

This topic contains 24 replies, has 25 voices, and was last updated by  Thomas Teltscher 8 months, 4 weeks ago.

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    Marina Manakova

    What are the key performance indicators of successful PMI? Is that just time and budget?


    Qiyang Liang

    a few KPIs in my opinions

    1. Communications: clear communication of plans to all stakeholders of the acquired company
    2. Employees: retention of all key staff
    3. Data (financial and operations): full visibility and integration
    4. Execution of investment thesis: be it growth initiatives or synergy initiatives
    4. A good Day 1 execution and 100 days plan execution


    Carli Luhrs

    KPIs that you would want to track:

    1. Clear Communication plan to stakeholders
    2. Retain Key Senior Leaderships
    3. Day 1-100 day plan- speed of integration
    4. Culture and Change Management synergies (cultural differences)
    5. Employee dissatisfaction / loss of key employees
    6. Project Governance and training


    Alexander Eck

    For our efforts the main PMI KPI’s are:

    – key employees (survey and how many are retained)
    – key customers (survey and how many are retained)
    – system integration (financial, sales)
    – revenue
    – EBIT


    Tobias Rohrbach

    It is the quality – and that means earning the expected benefits. This could be a total different approach depending on the expectations and objectives of an acquisition. It could be to get more market share, more employees, better fitting portfolio, more IP, etc. etc.



    I believe the following can be KPIs:

    1. Timely communication
    2. Maintaining revenue to targets
    3. Employees happy and key employees not leaving
    4. Integration of functional departments.


    Cesar Otero Lucas

    For me the main goal is to be focused on the result instead of being focused on the task. Time and budget of course are two key points, and have to be controlled. But for me the main points could be if the messages are well understood, if people from the acquiree are calm and without fear. If so, that is the base to make them trust in the new management team.


    Celine Bolard

    KPIs that are important to track, i would recommend to follow a scored cards matrix
    1. Financial KPis ; sales evolution, profit evolution
    2. Customer satisfaction; clients NPS, client complaints, other Kpis usually used in your industry to measure the quality of service ( number of calls missed, time to service0
    3. Operations; implementation of integration projects vs calendar, number of processes integrated, implementation of communication plan
    4. People; retention of key employees, voluntary turn over, number of hours spend in training
    5. Risk management; number of incidents with material impact for the company


    Gabriele Frigerio

    1. People – Employee retention rate
    2. Timing – Deviations to planned activities
    3. Communication: Internal and External Satisfaction Index
    4. Risk Management: Closed Risk/Identified
    5. Operations: Efficiency Increase
    6. Financials: Margin Evolution.


    Mihajlo Buljcik

    In my opinion:

    1. Financials: key ratios and target operating model maintained or even improved.
    2. Poeple: employee retention rate
    3. Cultural consistency maintained.


    Some of the indicators of successful PMI are:
    1. Project Efficiency
    2. Customer
    3. Business Success
    4. Future
    5. Team Stakeholder
    6. Schedule
    7. Cost
    8. Project Delivery


    Silman Ondrej Dia

    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.

    – Best Practices for Procurement Savings


    Christoffer Balieu

    In my opinion, the following are important KPIs:

    1) A clear and to the point communication strategy to deal with all stakeholders involved
    2) A well-defined 100-day plan to best ensure post-merger integration risks are mitigated
    3) High employee retention and key employees are not leaving
    4) A structured plan to deal with cultural differences between the merging entities


    Josh Liang Wee Ooi

    I believe all the suggestions offered up are great KPIs for PMI success. Ultimately it depends on the company what their acquisition goals has been and whether the returns from the investment are met (or at least on track to be met). It is after all an economic decision to acquire, so the economic goals need to be stewarded accordingly with the appropriate KPIs. This does not necessarily mean looking only at hard financial numbers, but holistically at the factors that would affect that assumptions/goals set out in the business case. For example, sales team integration or R&D progress would be just as critical as the immediate bottom line.


    Mateusz Młynarczyk

    In my opinion, the crucial performance indicator is the merged company value and from this perspective following factors can be mentioned:
    – employees retention;
    – customer retention;
    – project management quality;
    – performance management integration;
    – IT integration quality;
    – stakeholders reaction on integration.

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