Driving bold value creation to boost productivity

Value creation and rapid performance improvement are essential to both deal pricing and post-deal close success, with operational efficiency as a key driver of value.

Buyers are no longer willing to pay for theoretical upside. They expect critical value levers to be implemented before the sale. Recent data underscores this shift: buyers’ willingness to pay for unexecuted value has dropped from 60% in 2021 to just 20% in 2025.

True value creation extends far beyond cost-cutting. It focuses on unlocking sustainable productivity gains and transforming how work gets done. While confidence in the global economy is at a five-year low, according to KPMG’s Global CEO Outlook report, CEOs remain optimistic about their own organizations. In fact, 61% expect earnings to grow by 2.5% or more over the next three years, driven largely by increased focus on value creation.

In a market where advantage is measured in weeks, not months, speed has become the defining success factor. Organizations that move rapidly from insight to impact outperform those stuck in prolonged analysis. By integrating data, analytics, and execution capabilities, leaders can confidently prioritize the highest-value performance improvement opportunities and accelerate measurable results.

Too many organizations fall short of their value creation potential as they lack strategic clarity and alignment. Ownership of value creation is often fragmented, initiatives drift across functions without disciplined governance, slowing decision-making and obscuring accountability. At the same time, companies overinvest in planning while delaying execution, a costly misstep in today’s rapidly changing market. Nearly 40% of value creation initiatives fail or underdeliver due to slow execution, reinforcing the imperative for speed and disciplined action.  

In deal environments, the opposite risk can be just as costly: rushing into implementation without the proper planning and validation. Too often, organizations identify high-impact levers during diligence and push for immediate execution post- deal close, only to encounter unclear ownership, overlooked interdependencies, and unrealistic timelines that erode the value case. The goal is to strike the right balance, that is moving with speed while avoiding reckless execution. The most effective approach is fast yet intentional. This requires pressure testing assumptions, confirming baselines, and establishing governance so execution can proceed confidently, coherently, and without value leakage. 

Many organizations describe themselves as data-driven but lack the integrated KPIs, reliable baselines, and consistent data foundations required to measure impact with confidence. This gap highlights the importance of maintaining trusted and connected data to drive value creation decisions.

Traditional value creation relied on months of analysis, lengthy planning cycles, and delayed execution, an approach that no longer works in our deal context. Buyers and investors demand speed and certainty, expecting value to be identified early and captured quickly using advanced analytics, AI, and modern toolkits to move from insight to impact without delay.

Successful value creation efforts begin with a clear value thesis, a sharp articulation of where real opportunity lies. This means defining the levers that matter most, whether cost efficiency, revenue growth, productivity gains, or operational improvements, and defining an ideal target state. Building this clarity requires baselining current performance, benchmarking against peers, and analysing historical trends to expose hidden operational bottlenecks. When done well, this diagnostic foundation enables a targeted and insight-driven approach.

This structured approach is critical for delivering sustained results, particularly when under the time pressures of a deal. Standardized playbooks, synergy and value tracking, and disciplined execution creates a clear roadmap that aligns management teams, investors, and integration leaders around a shared objective. Just as important, this structure enables cross-functional teams to focus on value streams rather than on isolated silos, supporting rapid performance improvement.

Equally important is adopting a phased approach that separates quick wins from longer-term initiatives. Securing early wins not only validates the investment thesis but also builds momentum with leadership teams and signals immediate value capture post-close, creating confidence and accelerating buy-in for broader transformations.

Consider these key questions to keep your value creation strategy focused and actionable:

• How can we capture and sustain value post-M&A integration and deliver on potential synergies?
• How are we performing financially compared to competitors?
• What steps can we take to reduce costs without compromising strategic priorities?
• How can we make our processes more efficient?
• How should we respond to market disruptions from innovation or technology?
• Are we equipped to leverage AI, analytics, and automation to materially improve productivity?
• Do we have clear executive sponsorship and accountability for driving value creation?
• Are we engaging stakeholders at all levels to build buy-in and uncover hidden opportunities?
• Are governance, incentives, and accountability mechanisms in place to enable impact at speed?
• Do we track value realized or just activities completed?

Canadian organizations should consider these practical steps for embedding value creation as a driver of productivity and growth:

• Clarify strategic objectives: Define the long-term goals and vision for the organization to ensure every initiative aligns with the priorities.
• Assess market dynamics: Evaluate how innovation, technology, and competition shifts are reshaping your market.
• Benchmark against industry leaders: Continuously measure performance against top organizations, in Canada and beyond, to identify new gaps and opportunities for differentiation.
• Pinpoint value drivers: Identify the specific levers, such as operational improvements, technology upgrades, or new business models, that will deliver the greatest impact for your sector and organization.
• Enable data-driven decision making: Harness analytics and data-driven insights to prioritize initiatives, track progress, and pivot quickly when conditions change.
• Measure and track outcomes: Establish clear KPIs and governance to actively track value creation, prevent leakage, and validate impact.

Avoid these common pitfalls to ensure your value creation efforts deliver real, lasting impact:

• Chasing too many initiatives at once: A long list of initiatives creates noise, strains resources and dilutes focus. Prioritize a few high-impact initiatives and scale once success is proven.
• Underestimating the need for speed: Prolonged analysis or delayed action can erode competitive advantage and stakeholder confidence.
• Treating value creation as a side project: Value creation must be embedded into core operations and not delegated to a small team or treated as an “extra” initiative. Without enterprise-wide commitment, results will be inconsistent and easily deprioritized.
• Ignoring external trends: Failing to monitor market shifts, competitor moves, and emerging technologies can leave organizations vulnerable to disruption.
• Neglecting stakeholder engagement: Lack of buy-in can result in resistance and missed opportunities for improvement.
• Ignoring interdependencies: Optimizing one area of the organization while neglecting upstream or downstream processes can reduce overall value. A siloed fix may create new bottlenecks or introduce unintended risks.

An uncertain deal environment has made value creation critical to both pricing and post-close success. Organizations that combine strategic clarity with rapid, data-driven execution can unlock productivity, deliver EBITDA impact, and validate investment theses early. With advanced analytics and AI, leaders can now move from insight to impact in weeks, reducing risk and building early momentum. By focusing on high-value levers and applying disciplined planning, organizations can accelerate performance and create a resilient foundation for long-term growth.