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 HCM and SAP S/4HANA to deliver the promise of a performance culture.
faster process for performance and goals evaluation.
elimination of manual variable payment calculations planned.
evaluation process, replacing 90-degree reviews.
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.
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 capital 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 HCM, including the SAP SuccessFactors Performance & Goals solution, with SAP S/4HANA.
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 HCM, 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.”
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 Employee Engagement solution by Qualtrics 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 HCM.
SAP helps PROMESA run better
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
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 HCM 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 Employee Engagement by Qualtrics 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.
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.