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Baker Tilly mailbag: What are post merger and acquisition challenges involving KPIs, talent?
July 29, 2024 · Authored by Jennifer A. Finger
At Baker Tilly, we occasionally respond to questions that we hear from clients in the form of a public mailbag. In this edition, Baker Tilly principal Jennifer Finger tackles two questions about the first 100 days post-acquisition.
Q: What KPIs should our organization establish to help handle post merger and acquisition challenges? post merger and acquisition challenges?
A: It is extremely difficult to pinpoint standard KPIs that all organizations should implement, as KPIs can vary greatly by industry, by geography, by company and even by department. It is not ideal to say, “These are the five KPIs every business needs to measure its people, its performance and its business,” as by generalizing, you may miss key factors a specific business needs to consider that another does not.
With that in mind, here are a few pointers that organizations can keep in mind when developing KPIs post-acquisition:
- Be specific and strategic: KPIs must be clear and understandable, and they should be linked directly to the strategic objectives of the organization. Ideally, KPIs should focus on the key drivers of success for the organization, prioritizing the measurable metrics that will have the most significant impact on your business performance.
- Consider KPIs by viewing each department individually: When we work with an organization on developing KPIs, we walk through each individual department and examine the measures within each team that are going to affect change and impact the business, both now and in the future. However, we also make sure the KPIs are tied to the overall strategic objectives of the organization to ensure all departments are aligned in moving the organization forward.
- Be ready to adjust on the fly: KPIs can and should evolve over time (particularly for companies that are just coming off an acquisition). Company leaders must continue to monitor changes (to the industry, the company, the competition, the economy, etc.) and adjust their performance indicators, as appropriate.
