How to Determine Appropriate Performance Measures During Mergers (cont'd)
The financial portion of the assessment is typically the easiest to conduct, as there is a certain degree of familiarity with the process. There is also a great deal of commonality of terminology between merging entities. Standard performance measures that illustrate revenues, costs, and profitability can be used to establish short-term financial metrics and goals. Supplement the traditional measures with a planning based one reflecting the progress versus plan toward merging the two financial systems.
It is also recommended that the financial transition team look for opportunities created by the merger that should yield direct financial results and create a specific measure to account for them. This will necessitate a review of the data from the other assessments. A good example would be commission revenue in the process extension definition. This is exactly the type of measure that a process team will often overlook in terms of financial impact because their main focus is on process detail. It is up to the financial team to clean these up.
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