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Customer Stories

PROMESA: Adopting a new business model by creating a performance culture

Explore PROMESA’s journey with SAP

When automotive and construction parts manufacturer Productos Metalúrgicos S.A. (PROMESA) sought to better engage its people in readiness for a new go-to-market offering, it prioritized performance management. Working with Seidor Ecuador, PROMESA integrated SAP SuccessFactors Human Experience Management Suite and SAP S/4HANA to deliver the promise of a performance culture.

>80%

faster process for performance and goals evaluation.

100%

elimination of manual variable payment calculations planned.

360-degree

evaluation process, replacing 90-degree reviews.

As we build our new B2C operations using SAP SuccessFactors Human Experience Management Suite and SAP S/4HANA, we can unlock more value from performance reviews, create tangible paths for employee growth, and automate variable remuneration calculations. This is boosting the time available for our HR team to focus on strategic work.

Miguel Sotomayor
Technology Manager, Productos Metalúrgicos S.A.

The Challenge

Going fully digital to upgrade employee experiences

A leader in wholesale hardware, spare parts, and lubricants sales throughout Ecuador, PROMESA has manufactured spare parts for vehicles and construction machinery for more than 50 years. The company operates a B2B model, serving automotive maintenance shops with everything from tires to windshield wipers while supplying hardware stores with a range of tools, from nails to industrial drills.

 

PROMESA began its digital transformation by standardizing disparate systems on one global ERP application. Unifying manufacturing, sales, marketing, accounting, and HR data on SAP S/4HANA, it streamlined processes and realized significant operational efficiencies.

 

In gaining transparency across the business and 24x7 access to data for powerful analysis and insights, PROMESA recognized the vast potential of complementing its go-to-market strategy with a direct-to-consumer offering. The company was ready to embark on its next growth phase, but it needed to modernize HR practices to support its strategic vision for a B2C model.

By integrating SAP SuccessFactors solutions and SAP S/4HANA, we have automated and connected processes across our business, delivering real insight that allows us to better engage our people to support their long-term development and our business goals.

Miguel Sotomayor
Technology Manager, Productos Metalúrgicos S.A.

The Solution

Retooling talent management with advanced and connected digital solutions

Before introducing its new B2C model, PROMESA needed to digitalize human experience management processes. While the company had mature people management processes, there was an urgent need for PROMESA to automate and simplify everything related to talent management, as those processes were done manually.

 

PROMESA was intent on aligning employee goals with its business objectives while also supporting the holistic development and management of its people. The company sought to adopt a 360-degree performance appraisal and feedback process and streamline variable pay calculations.

 

Miguel Sotomayor, technology manager at PROMESA, explains, “As everything was on paper, the best we could do was a 90-degree review between an employee and their supervisor. And the calculations for variable payments that impact practically everyone in the company were taking three or four months.”

 

To realize its ambitions for more effective employee management and engagement, PROMESA joined forces with SAP partner Seidor Ecuador. Together, they integrated SAP SuccessFactors Human Experience Management Suite, including the SAP SuccessFactors Performance & Goals solution, with SAP S/4HANA.

We implemented the SAP SuccessFactors Performance & Goals solution because it was important for us to have a balanced performance evaluation process with 360-degree feedback.

Miguel Sotomayor
Technology Manager, Productos Metalúrgicos S.A.

The Result

Enhancing employee satisfaction through meaningful performance management

Integrating SAP S/4HANA with SAP SuccessFactors solutions allows PROMESA to automate its talent management practices, eliminating manual tasks from performance appraisals and variable pay calculations. The company replaced its backward-looking performance reviews with forward-looking 360-degree performance evaluations, underpinning its performance culture. Using the SAP SuccessFactors Performance & Goals solution, its people now receive performance feedback from their managers, coworkers, and subordinates in an online form. And the whole process is a continuum of ongoing feedback and forward-looking assessments, with the results directly linked to variable payments.

 

Sotomayor elaborates, “We aim to pay bonuses to employees every six months. Previously using manual processes, it took three people about three months to collect, aggregate, and validate the data before incentive payouts could be calculated and reported on. This was challenging because there was no real understanding of the total payout required by the business until late in the semester.”

 

Now, by connecting the solutions in SAP SuccessFactors Human Experience Management Suite with SAP S/4HANA, the process of calculating bonuses can be significantly reduced. Sotomayor adds, “In the future, when performance assessments are completed, the results, including the cost of the variable payments, will be available in the system. This means our people will know what to expect for their bonus payments earlier. In January, I will already know how much the variable bonus payment will be in June, so we can better manage employee expectations and our cash flow.”

We’re eliminating the need to manually collect, aggregate, and validate the information required to calculate variable remuneration. With SAP SuccessFactors solutions integrated with SAP S/4HANA, it’s all automatic.

Miguel Sotomayor
Technology Manager, Productos Metalúrgicos S.A.

Future Plans

Continuously improving employee engagement

With feedback from multiple sources for performance and goals management, PROMESA has a stronger understanding of its employees’ workplace competencies, which now forms the basis of its talent assessment and succession planning initiatives.

 

Elsewhere, PROMESA has adopted the SAP Qualtrics Employee Engagement solution and is planning to integrate it with SAP SuccessFactors solutions to capture continuous feedback from employees.

 

And, as PROMESA continues to work on launching its new B2C business, it plans to make employee engagement the centerpiece of its talent management strategy using SAP SuccessFactors Human Experience Management Suite.

SAP helps PROMESA run better

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Key business outcomes and benefits

  • Automated talent management practices, eliminating manual tasks for performance appraisals and variable pay calculations
  • Replaced backward-looking performance reviews with forward-looking, 360-degree performance evaluations
  • Linked data from performance appraisals to finance data in SAP S/4HANA, eliminating manual steps in calculating variable remuneration
  • Streamlined the performance evaluation process, from three months down to two weeks, boosting employee engagement
  • Enhanced efficiency of HR operations, liberating the HR team to work on strategic initiatives

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Featured solutions and services

  • SAP S/4HANA provides cloud-based ERP that integrates with SAP solutions and other technologies to embed intelligence and innovation into daily business operations.
  • SAP SuccessFactors Human Experience Management Suite offers cloud-based solutions that connect core HR and payroll, talent management, and people analytics.
  • SAP SuccessFactors Performance & Goals helps improve employee performance through ongoing coaching and feedback, performance goal management, and continuous development.
  • SAP Qualtrics Employee Engagement provides a view of the key drivers of employee engagement to support an improved employee experience.

About PROMESA

One of the leading distributors of hardware and vehicle parts in Ecuador, Productos Metalúrgicos S.A. (PROMESA) manufactures automotive spare parts and construction machinery, plus a long list of smaller hardware items. With a history spanning more than 50 years, its automotive line includes everything from tires to windshield wipers, and its hardware line includes everything from nails to industrial drills.

Industry Region Company Size Partner
Industrial manufacturing Guayaquil, Ecuador ~400 employees Seidor Ecuador
Featured partner

Seidor Ecuador is a technology consultancy offering a broad portfolio of solutions and services in consulting, implementation, development, and maintenance of applications and infrastructure, as well as outsourcing services. With proven expertise and capabilities, Seidor is recognized as a pioneer in implementing and integrating SAP S/4HANA and SAP SuccessFactors solutions in Ecuador.

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