How to Determine Appropriate Performance Measures During Mergers (cont'd)
A complete assessment should include an analysis from the financial, customer, process, human resources, and technology perspectives. Note that these mirror the categories popularized by a very successful form of modern performance measurement: the Balanced Scorecard (BSC). The BSC is a strategic management tool that became popular in the mid- 1990's. The concepts are particularly relevant to mergers and acquisitions since M & A should begin as a high-level strategic activity. Part of the "balance" of the scorecard comes from measuring strategic performance by looking at both financial and non-financial measures. Incorporating the types of non-financial indicators noted above is standard operating procedure for a BSC, since they are the building blocks of practically every corporate strategy. Below are some thoughts on measures for each perspective.
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