Creating a Performance Evaluation System and Operationalising the Organisation Structure for an Auto and Industrial Rubber Component Manufacturer

Automotive Consulting

Client Challenge

The client was engaged in the manufacturing of automotive and industrial rubber components largely for OEMs and after-market clients. They had been growing at greater than 30% per annum in the last five years and top management believed that the growth rate would continue for the next few years. After having engaged UC Strategy to create a customer focused organisation structure, the top management felt the need to get support in implementing the structure and in designing a performance management system in view of issues such as absence of a formal objective evaluation system, lack of focus on important business goals, lack of a direct connection between performance and pay and poor ownership of responsibilities

Our Approach

To implement the structure that UC Strategy proposed, and to design a performance management system, the following steps were taken:

  • Assisted top management in communicating the proposed organisation structure to key employees. Defined BATNAs (Best Alternative to No Agreement) before announcing the changes to key people who were going to get significantly impacted by the proposed structure
  • Understood key issues in the current evaluation system and the business objectives for next 2-3 years
  • Brainstormed and analysed gaps in the internal capabilities across the division. These gaps became the basis of defining the specific measures for individuals in each division
  • Developed a conceptual framework for performance evaluation system (PES) including measures key performance indicators (KPIs), key result areas (KRAs) and personality traits, and a feedback and frequency evaluation process
  • Assisted in linking PES with rewards and increments
  • Defined indicative KPIs for the top 50 key roles
  • Prepared detailed operating manual for the new evaluation process and an implementation calendar
  • Communicated the PES to all the people covered in the system
  • Assisted the top management in implementation of the performance evaluation system –
    • Assisted in selecting appropriate KPIs
    • Assisted in finalising the targets for each of the selected KPIs
    • Assisted in communicating the KPIs and targets to the Heads of Departments and other critical positions.

Our Impact

The client enjoyed the benefits of a newly structured organisation and an effective performance evaluation system.

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