What performance metrics can you use to track deal execution?

1 Deal success rate

The deal success rate is the percentage of deals that are successfully completed out of the total number of deals initiated or pursued. It indicates how well the deal team can identify, evaluate, and execute viable opportunities, as well as overcome potential challenges and risks. A high deal success rate implies that the deal team has a clear strategy, strong capabilities, and robust processes. A low deal success rate may suggest that the deal team is too optimistic, lacks due diligence, or faces external factors that derail the deal.

2 Deal cycle time

The deal cycle time is the duration of the deal execution process, from the initial contact or offer to the final closing or integration. It measures how quickly the deal team can complete the deal and realize the expected benefits. A short deal cycle time implies that the deal team is agile, responsive, and coordinated. A long deal cycle time may indicate that the deal team is slow, indecisive, or unprepared.

3 Deal value creation

The deal value creation is the difference between the value of the deal for the buyer or seller and the price paid or received. It measures how much value the deal team can generate or capture from the transaction. A positive deal value creation implies that the deal team can negotiate a favorable price, leverage synergies, or enhance performance. A negative deal value creation may suggest that the deal team overpays, underestimates costs, or fails to achieve targets.

4 Deal quality score

The deal quality score is a composite metric that evaluates the deal execution process based on multiple criteria, such as alignment with strategic objectives, stakeholder satisfaction, risk management, compliance, and post-deal performance. It provides a holistic assessment of the deal quality and identifies areas for improvement. A high deal quality score implies that the deal team follows best practices, meets expectations, and delivers results. A low deal quality score may indicate that the deal team deviates from standards, encounters issues, or falls short of goals.

5 Deal feedback loop

The deal feedback loop is a mechanism that collects and analyzes data and feedback from the deal execution process and uses them to inform future decisions and actions. It enables the deal team to learn from experience, identify strengths and weaknesses, and implement changes. A strong deal feedback loop implies that the deal team is proactive, adaptive, and innovative. A weak deal feedback loop may suggest that the deal team is reactive, rigid, or complacent.

6 Here’s what else to consider

This is a space to share examples, stories, or insights that don’t fit into any of the previous sections. What else would you like to add?