In the era of data-driven businesses, performance management It's not just a tool for evaluating employees — it's a strategy for optimizing productivity, guiding development, and connecting personal goals with organizational goals.
One enterprise performance management process Effectiveness will help businesses measure accurately, encourage growth, and make human resources decisions based on real data.
What is corporate performance management? Related terms
Enterprise Performance Management (EPM) or enterprise performance management is a system that helps organizations plan, measure and optimize work performance at both individual and organizational levels.
To properly understand this process, it is necessary to understand the core terms:
- KPI (Key Performance Indicator): Key result indicators, which reflect the level of goal completion.
- OKR (Objectives & Key Results): model of setting challenging goals and measuring them with specific results.
- Balanced Scorecard (BSC): Management framework helps balance between finance – customer – process – internal development.
- SMART Goals: Criteria for setting goals that are clear, measurable, attainable, realistic, and time-bound.
System EPM plays a role in connecting all these methods into a closed circle, helping businesses move from emotional measurement to data-driven performance management.
Benefits of applying performance management process in business
One enterprise performance management process The method brings many practical values:
- Link individual performance to strategic goals: Each employee clearly understands his or her role in the big picture.
- Increased transparency: All assessments are based on data rather than gut feelings.
- Identify and develop potential employees: Easily identify top performing employees.
- Boost morale and retain staff: Employees are recognized, oriented and clearly developed.
- Optimizing financial efficiency: allocate resources reasonably, reduce waste of human resources costs.
5-Step Employee Performance Management Process
An effective performance management process typically consists of five main stages:
1. Planning
Every performance management process starts with step planning. This is the phase that determines the overall objectives, scope of the assessment, time frame and tools to be used.
- Identify the purpose of the evaluation (quarterly, annually, or project-based).
- Determine the scope: evaluate the whole company or each department.
- Choose a method: KPI, OKR, Balanced Scorecard or 360° feedback.
- Identify who is responsible for collecting and compiling data.
Clear planning helps businesses avoid overlap between departments and ensures consistency in assessment.
2. Set goals (SMART)
After having a master plan, the business needs to set clear and measurable goals. The SMART model is the most popular tool:
- Specific: Specific, easy to understand goals.
- Measurable: Have clear quantitative or qualitative measures.
- Achievable: Can be achieved with existing resources.
- Relevant: Link to business strategy.
- Time-bound: There is a specific deadline.
For example, “Increase 15% in second quarter revenue through expanding the SME customer base in Hanoi” is a SMART goal — clear, measurable, achievable, and tied to a growth strategy.
3. Build an evaluation system
This is the “heart” of the process. Businesses need to choose the appropriate measurement model and set up a clear set of KPI/OKR/BSC indicators for each position.
- Select KPI index set demonstrate strategic objectives.
- Establish weight by importance (e.g. revenue 40%, customer 30%, internal 30%).
- Build an automated data collection system (via EPM, HRM, or Google Data Studio software).
- Make sure managers understand how to read and interpret KPI results.
For large enterprises, using software such as Sactona – EPM solution distributed by Bizzi Helps automate data aggregation, reduce manual errors, and save time.
4. Monitoring & Feedback
Performance should not be evaluated only at the end of the term. Regular monitoring and feedback Help employees adjust behavior and improve results promptly.
- Organization 1:1 meeting monthly or quarterly
- Provide data-driven feedback.
- Encourage two-way dialogue between managers and employees.
- Apply the model coaching instead of just judging the results.
Regular feedback helps make performance management a development tool, not just a control tool.
5. Development & recognition of achievements
The ultimate goal of performance management is not “grading”, but improve team capacity.
- Based on the assessment results to determine capacity gap.
- Build training roadmap (training plan) and personal development (development plan).
- Link performance with bonus, promotion and recognition policy.
- Give public rewards to spread positive spirit in the organization.
A closed loop process will always have a feedback loop — from evaluate → improve → develop → recognize — to ensure continuous performance improvement.
How to measure employee performance
Performance measurement is the foundation of any effective management system. However, there is no “one size fits all” model — each business needs to choose the method that fits its strategy, size, and culture.
Here are the four most popular models:
1. KPI-based – measuring according to quantitative indicators
This method focuses on clear goals and measurable resultsKPIs help businesses track progress and results according to specific indicators such as revenue, output, conversion rate, costs, etc.
When applying KPIs, it is important to note:
- Only choose 3–5 key KPIs for each position.
- KPIs must be directly linked to strategic goals.
- It is necessary to set up an automatic measurement system to ensure accuracy.
2. OKR – encourage creativity and initiative
OKR (Objectives & Key Results) is suitable for dynamic organizations that value innovation and speed.
- Objective: Goal oriented, inspirational.
- Key Results: Measurement results are expressed in specific figures.
For example:
Objective: Improve customer experience.
Key Results:
- Increase NPS to 80 points.
- Reduce customer response time to 30 minutes.
OKRs are typically reviewed quarterly, giving employees the opportunity to proactively set goals and track their own progress.
3. Balanced Scorecard (BSC) – comprehensive balance assessment
BSC measures performance not only through financial results, but also through four core aspects:
- Finance: profit, revenue, ROI.
- Client: satisfaction, retention rate.
- Internal process: production efficiency, defect rate, processing time.
- Learning & Development: skills, abilities, training.
This model is suitable for large-scale businesses that need to ensure a balance between profit and sustainable development.
4. 360° feedback – behavioral and leadership assessment
This method is based on multidimensional feedback: from superiors, colleagues, subordinates and even customers.
- Suitable for management positions or jobs that are more soft skills.
- Helps develop leadership, communication and collaboration skills.
- Should be combined with KPI to ensure both factors: effectiveness and behavior.
👉 Note: Businesses should combine quantitative measurement (KPI, BSC) with qualitative assessment (OKR, 360°) to ensure results fully reflect employee performance and development potential.
How to Calculate Employee Performance: Formula, KPI & Real-Life Examples
To evaluate performance transparently, businesses need to use specific indicators and clear formulas.
Popular recipes
- % KPI Completion = (Actual / Target) × 100%
→ Evaluate the level of achievement compared to the plan. - Productivity Index = Output / Execution Time
→ Reflects work productivity over time.
- Revenue per Employee = Total Revenue / Number of Employees
→ Measure the economic value creation efficiency of each employee. - Error Rate = (Number of errors / Total work) × 100%
→ Measure quality and accuracy in work. - Customer Satisfaction Score (CSAT)
→ Evaluate customer experience, often through surveys (1–5 or 1–10 scale).
Real life example
Let's say a sales person achieves 120 million in revenue/month on a target of 100 million.
→ % Completed KPI = (120/100) × 100% = 120%.
If the Sales department has 10 employees and total revenue reaches 1.2 billion/month → Revenue per employee = 120 million/person.
Performance Management Software: Sactona & Effective KPI Tracking Tools
In the context of businesses increasingly moving towards data-driven managementPerformance management tools play a key role in automating the evaluation process, reducing manual errors and improving organizational productivity.
If businesses previously used Excel or separate HRM systems, now platforms Enterprise Performance Management (EPM) like Sactona Allows connecting strategy – KPI – financial data – human resources on the same system, helping leaders monitor performance in real time.
1. Sactona – EPM solution distributed by Bizzi
Sactona is the foundation Enterprise Performance Management Developed by Outlook Consulting (Japan) and exclusively distributed in Vietnam by Bizzi. This is a solution designed to be “finance-driven, not IT-driven” — meaning it is specifically for finance, FP&A, and management teams, and does not require complex technical skills.
Outstanding features of Sactona
- KPI Tracker: Track KPI progress, alert when performance deviates from targets.
- Performance Dashboard: Provides intuitive dashboards by department, project, or individual.
- Automated Reports: Automatically synthesize and send periodic reports (weekly/monthly/quarterly).
- Excel-like Interface: Keeps familiar formulas and operations on Excel but has real-time features.
- Integration-ready: Easy integration with existing ERP (SAP, Oracle, Dynamics) and HRIS systems.
- Fast Deployment: Fast deployment in just 2–3 months, ROI achieved in 3–6 months.
Benefits of using Sactona in performance management
- KPI Transparency: All indexes are updated automatically, eliminating manual entry errors.
- Automate assessment: reduce synthesis and result calculation time by 60–70%.
- Speed up decision making: Real-time dashboards allow CFOs and HR Managers to take timely action.
- Cost optimization: 40% lower implementation costs compared to international EPM platforms.
Sactona is currently trusted by more than 200 businesses in Japan and Singapore, including Panasonic, Fujifilm, Monex Group.
2. Other popular international tools
Each performance management platform has its own advantages. Here is a detailed comparison:
| Criteria | Sactona (Bizzi EPM) | Workday | SAP SuccessFactors | Lattice |
| Product orientation | EPM (strategy – KPI – finance) | HRM (human resource life cycle) | HRM (enterprise-grade) | Engagement & OKR |
| Main market | Japan, Vietnam, APAC | Global | Large corporations | SME |
| User interface | Excel-like, friendly | Modern UI | Web-based | Modern UI |
| Deployment | 2–3 months | 6–9 months | 9–12 months | 3–4 months |
| ERP/HRIS Integration | Yes, powerful via API | Have | Have | Limit |
| KPI Automation | High | Medium | Medium | Medium |
| Real-time dashboard reporting | Have | Have | Have | Have |
| Implementation costs | Flexible, suitable for Vietnamese market | High | Very high | Medium |
| Average ROI | 3–6 months | 9–12 months | 12–18 months | 6–9 months |
Sactona is the most suitable choice for Vietnamese businesses wanting to apply EPM in performance management, thanks to its flexibility, reasonable cost and strong integration with existing financial and accounting systems.
3. Integrate Sactona with ERP and HRIS – synchronize performance data
One of Sactona's greatest strengths is its ability to automatically synchronize data from multiple sources, ensuring all KPIs are always accurate and updated in real-time:
- From ERP: revenue, cost, profit, output data.
- From HRIS: attendance data, productivity, training history.
- From CRM: sales, new customers, retention.
When integrated, the Sactona system automates:
- Calculate and allocate KPIs for each department.
- Display dashboard summarizing financial & human resource performance.
- Automatically warn when KPI deviates from standard or has unusual fluctuations.
This way, managers don't have to spend hours entering data or reconciling Excel — all data is processed instantly, making it easier to data-driven performance management.
4. Criteria for choosing suitable performance management software
When choosing a tool, businesses need to consider the following criteria:
- Ease of use: Friendly and logical interface, allowing users without IT skills to operate.
- Integration: The software needs to connect to ERP, HRM, CRM to automatically synchronize data.
- Analytics: Has intuitive dashboard, allowing data to be drilled down by department, region, and time.
- Cost & ROI: Ensure reasonable costs and short payback period (3–6 months is ideal).
- Scalability: The software must be able to respond when the business expands or adds branches.
Comparing EPM vs HRM vs Excel in performance management
In the journey of digital transformation of performance management, businesses often stand between three choices: Excel, HRM system, or EPM (Enterprise Performance Management) solution.
Each tool has its own scope and value, depending on the complexity of your operating model and data analysis needs.
| Criteria | Excel | HRM | EPM (Sactona – Bizzi distribution solution) |
| Scope of use | Individual and small group measurement | Human resource management, timekeeping, salary and bonus | Strategic alignment – KPI – finance – performance |
| Automation | Low, hand input | Average (HR workflow) | High, ERP/HRIS integration, real-time update |
| Analytical ability | Limited, manual | Basic HR Analysis | Forecasting, scenario modeling, variance analysis |
| Governance | Error-prone, duplicate versions | User-specific security | Detailed authorization management, version control |
| Scalability | Limited when scale >100 employees | Good at HR | Expanding across departments, units, and the entire corporation |
| Implementation costs | Short | Medium | Flexible, fast ROI (3–6 months) |
| Suitable for | Small business, few KPIs | Businesses want to digitize human resources | Businesses moving towards integrated financial and performance management |
Comments:
- Excel Suitable for small organizations that need quick tracking. However, when the number of employees is >100, the risk of errors, duplicate data and lack of updates will increase.
- HRM Focus on HR processes (recruitment, timekeeping, payroll), little support for KPI calculation or performance planning.
- EPM (like Sactona) is a higher level: Linking KPI – strategy – actual results, automated measurement and forecasting, suitable for businesses that require in-depth analysis and data-driven decision making.
List of important KPIs for business performance management
The KPI (Key Performance Indicators) system is the “backbone” of performance management. An effective set of KPIs must Link from corporate strategy → departmental goals → individual actions.
1. KPI system structure
Organizational KPIs:
- Revenue / Net Profit
- Operating Margin
- Market share growth rate
- Forecast Accuracy
- ROI of a project or product
Departmental KPIs:
- Departmental Goal Achievement
- On-time Task Completion
- Cost-to-Revenue Ratio
- Employee Turnover Rate
- Customer NPS (Net Promoter Score – customer satisfaction level)
Individual KPIs:
- Revenue per Employee
- Error Rate
- Productivity Index
- Customer Satisfaction Score
- Training Hours per Employee (Average Training Hours)
2. Classify main KPI groups
- Financial KPIs: revenue, profit, ROI, cost/revenue ratio.
- Operational KPIs: productivity, process efficiency, completion rate.
- Customer KPIs: NPS, retention rate, response time.
- Employee KPIs: engagement score, turnover rate, training & development.
An effective KPI system should have outcome balance and input/process to ensure sustainable performance.
3. Track KPIs with Sactona
Sactona help businesses:
- Automatically synthesize KPI data from ERP, HRM, CRM.
- Display real-time dashboard at organizational - departmental - individual level.
- Warning when KPI deviates from threshold or fails to meet progress.
- Allows FP&A and HRBP to generate automated reports with just a few clicks.
A clear KPI system, measured and tracked using an EPM platform such as Sactona will help:
- Improve transparency in assessments.
- Link strategic goals to actual performance.
- Optimize resources and operating costs.
- Increase motivation, reduce conflict in the organization.
Frequently asked questions
1. What are the steps in the performance management process?
The standard performance management process consists of 5 steps: Plan → Set goals (SMART) → Measure and collect data → Evaluate and feedback → Develop & recognize.
Some businesses add an additional “Continuous Monitoring” phase with KPI dashboards to ensure continuous improvement and early detection of bottlenecks.
2. How to calculate % to complete KPI?
Standard formula: % Completed KPI = (Actual value / Set target) × 100%.
For example: Monthly sales target is 100 million, achieved 90 million → % completed = 90%.
3. How is KPI different from OKR?
- KPI: are specific performance measurement indicators, linked to quantitative goals (target-driven).
- OKR: combination of Objective (inspirational goals) and Key Results (quantitative results), more flexible, encourages creativity and continuous feedback.
→ KPI focuses on “how much is achieved”, while OKR focuses on “what is the direction and progress”.
4. Should I use software like Sactona to evaluate performance?
Yes. Software like Sactona help automate processes, reduce manual operations and increase transparency.
Data is updated in real-time from ERP, HRM, CRM systems — helping managers evaluate more objectively, quickly and accurately than Excel or subjective assessments.
5. How to ensure fairness in performance appraisal?
Justice comes from data transparency and clear measurement standards.
Businesses should:
- Set KPIs associated with job descriptions.
- Publish measurement criteria and weights before the evaluation cycle.
- Use an EPM system with automatic tracking and audit trail to eliminate subjectivity.
6. How to connect ERP/HRIS data to performance dashboard?
In Bizzi EPM, data connection is done through API or automatic file sync:
- ERP provides financial, production, and cost data.
- HRIS provides human resource data, timekeeping, training.
- CRM provides customer and sales data.
The system automatically synchronizes KPIs, updates dashboards and alerts when there are fluctuations.
Implementing a performance management system
A performance management system only truly creates value when it is strategically implemented, results are measured, and user acceptance is achieved.
6–12 week implementation roadmap:
- Readiness assessment
Assess current situation: tools in use, KPI maturity, data sources.
Identify the gap between target and reality to guide system configuration. - Pilot
Deploy to 1 department (usually Sales or Finance) to test KPI model, dashboard features, and review process. - Refine metrics
Adjust KPI weighting, report formats, and approval processes based on pilot results. - Full rollout
Expand across the enterprise, set up review cadence (monthly/quarterly) and two-way feedback process between employees and managers. - Training & Adoption
Organization Manager Workshops, release user guides, provide Excel templates compatible with the system Bizzi EPM to increase the level of familiarity. - Governance & continuous improvement
Decentralization data owners, organization KPI calibration sessions to ensure fairness and consistency across departments.
Regularly review and improve KPIs according to new business context.
Conclude
One enterprise performance management process Effectively helps businesses measure accurately, connecting strategy - finance - people.
From defining KPIs to implementing EPM software as Sactona, businesses will move from “assess later” to “forecast and act ahead”.
With Sactona – EPM solution exclusively distributed by Bizzi in Vietnam, businesses can:
- Fast deployment in 2–3 months, high ROI.
- Automate KPIs and dashboards.
- Easy to use, friendly, no IT required.
👉 Contact Bizzi to schedule an EPM demo and receive Checklist Readiness free for business performance management
👉 Sign up here to discover Sactona EPM – the solution to enhance data management, financial planning and forecasting – faster, more accurate and more efficient for your business!
